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Notice Pay and Redundancy Pay: The Basic Difference
In the UK, notice pay and redundancy pay are two separate entitlements. Notice pay covers the period between your dismissal and your actual leaving date. Redundancy pay is compensation for losing your job because the role is no longer needed.
If you are made redundant, your employer must usually give you notice or pay you in lieu of notice. Whether you find another job or not does not normally change your legal right to notice pay for the notice period owed. Redundancy pay is also usually still due if you qualify for it.
What Happens If You Start a New Job During Notice?
Finding another job does not automatically cancel your right to notice pay. If your current employer keeps you on payroll for the full notice period, you are entitled to be paid as normal until that period ends. You may also be able to agree an earlier leaving date.
In some cases, your new employer may want you to start sooner. If your current employer agrees, you can leave early, but this may affect how much notice pay you receive. The key point is whether you are being paid for the notice period under your contract or by agreement.
Redundancy Pay When You Have a New Job
Statutory redundancy pay is based on your age, weekly pay, and length of service, not on whether you have found new work. If you qualify, you should still receive it even if you already have another job lined up. The same is often true for enhanced redundancy packages, unless the terms say otherwise.
That said, if you leave voluntarily before your redundancy process is completed, you may affect your entitlement. For example, if you resign before your employer dismisses you for redundancy, you may lose the right to redundancy pay. It is important to check the timing carefully.
Garden Leave, PILON and Early Exit
Some employers place staff on garden leave during notice. This means you remain employed and paid, but do not work. You can usually start a new job only if your contract allows it or your employer agrees.
If your employer pays in lieu of notice, often called PILON, your contract ends immediately and you receive a payment instead of working your notice. Whether you can begin a new job straight away depends on any contractual restrictions, such as confidentiality or restrictive covenants. These are more common for senior or specialist roles.
What to Check Before Accepting the New Job
Always check your contract, redundancy letter, and any settlement agreement. These documents may set out notice rules, bonus terms, holiday pay, and any restrictions on starting elsewhere. They may also explain how your final pay will be calculated.
If there is any dispute, speak to your employer in writing and ask for a clear breakdown of what you will receive. You can also seek advice from ACAS, a trade union, or an employment solicitor. That can help you avoid losing money by leaving at the wrong time.
Frequently Asked Questions
Notice and redundancy pay entitlement UK if employee finds another job refers to the rules on notice pay and redundancy pay when a role ends because of redundancy, even if the employee has secured other work. In general, redundancy pay can still be due if the legal conditions are met, while notice pay depends on how and when employment ends.
Eligibility for notice and redundancy pay entitlement UK if employee finds another job depends on factors such as length of service, employee status, age, and whether the redundancy is genuine. Finding another job does not usually remove entitlement to redundancy pay if the person otherwise qualifies.
If the employee resigns voluntarily, notice and redundancy pay entitlement UK if employee finds another job will usually not apply as redundancy pay is generally only due when employment ends because the job is no longer needed. Notice pay may still depend on the contract and the circumstances of termination.
Yes, an employee can often keep notice and redundancy pay entitlement UK if employee finds another job before the redundancy date, provided the redundancy is genuine and they meet the qualifying rules. Starting a new job does not automatically cancel redundancy pay.
Notice and redundancy pay entitlement UK if employee finds another job can include statutory redundancy pay if the employee has at least two years' qualifying service and the employer meets the legal conditions. Statutory redundancy pay is separate from notice pay.
Yes, notice and redundancy pay entitlement UK if employee finds another job may also include contractual redundancy pay if the employment contract, staff handbook, or redundancy policy provides for it. Contractual terms can be more generous than the statutory minimum.
Notice and redundancy pay entitlement UK if employee finds another job is calculated separately. Notice pay is usually based on the employee's notice period and normal pay, while redundancy pay is based on age, length of service, and weekly pay subject to the statutory cap, unless contractual terms provide more.
Starting a new job immediately does not usually remove notice and redundancy pay entitlement UK if employee finds another job. However, the timing may affect whether notice is worked, paid in lieu, or affected by any contractual offset rules.
In most cases, notice and redundancy pay entitlement UK if employee finds another job is not reduced simply because the employee earns money in a new job. Redundancy pay is based on qualifying employment and pay rules, not on whether the person has found replacement work.
Yes, notice and redundancy pay entitlement UK if employee finds another job can still apply even if the employee is in a trial period with a new employer. The key issue is whether the redundancy and notice rights arise under the old employment and whether the qualifying conditions are satisfied.
If an employee finds another job during redundancy consultation, notice and redundancy pay entitlement UK if employee finds another job usually remains governed by the original employment relationship. Consultation does not normally remove redundancy rights, although it may affect practical timing and any agreed exit date.
No, notice and redundancy pay entitlement UK if employee finds another job generally does not apply if the employee is dismissed for gross misconduct, because redundancy is a separate legal situation. Redundancy pay is only relevant where the dismissal is because the role is genuinely redundant.
Yes, notice and redundancy pay entitlement UK if employee finds another job can be paid alongside any accrued but untaken holiday pay. Holiday pay is a separate entitlement and is usually paid on termination if unused leave has built up.
Yes, notice and redundancy pay entitlement UK if employee finds another job can be affected if the employer offers suitable alternative employment. If a reasonable alternative is accepted, redundancy pay may not be due, but refusing an unsuitable alternative usually does not remove entitlement.
Notice and redundancy pay entitlement UK if employee finds another job is usually not lost simply because the employee gives short notice after finding another job, unless they are resigning instead of being made redundant. If the employer is ending the role, the employee may still be owed the proper notice and redundancy amounts.
Yes, notice and redundancy pay entitlement UK if employee finds another job may be affected by gardening leave in the sense that the employee remains employed during notice, but it usually does not remove redundancy rights. The employee may still be entitled to notice pay and redundancy pay if the dismissal is by redundancy.
Notice and redundancy pay entitlement UK if employee finds another job can apply to fixed-term contracts if the contract ends by reason of redundancy and the employee meets the qualifying conditions. The precise rights can depend on the contract terms and whether the role ends because it is no longer needed.
Yes, notice and redundancy pay entitlement UK if employee finds another job can be challenged if the employee believes the redundancy is not genuine or the employer has not followed the proper process. An employee may raise a grievance or seek advice about a potential unfair dismissal or redundancy dispute.
An employee should check the employment contract, redundancy policy, payslips, length of service, and the reason for dismissal to assess notice and redundancy pay entitlement UK if employee finds another job. If there is any doubt, the employee can ask the employer for a written breakdown or seek legal advice.
If notice and redundancy pay entitlement UK if employee finds another job is not paid correctly, the employee should first ask the employer for a written explanation and calculation. If the issue is not resolved, the employee may need to use the employer's grievance process or seek advice on making a claim for unpaid wages or redundancy pay.
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