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Pay in Lieu of notice from RPS on an insolvency

Redundancy Payment Service deducted for Job Seekers allowance from the payment of PILN entitlement

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RPS has deducted a sum from a claim of PILN for the jobseekers allowance that should have been claimed. But the claim was not made initially and when it was made eventually it was rejected for the reason that there was other income received during the Period of Jobseekers allowance from a part time job.

Question - Is the RPS still entitle to the deduction made for Jobseekers allowance which was never received or entitled to or they shoud reimburse?

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Lisa Thomas
By Insolvency Practitioner
11th Aug 2020 10:29

If there was other income received during the period then the RPO would have deducted this instead - it sounds as if it might be a case of swings and roundabouts.

Is there much difference between the income earned and the job seekers allowance?

Speak to ACAs for guidance.

www.acas.org.uk
Telephone: 0300 123 1100

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By filippaconnor
12th Aug 2020 11:17

Yes. Pay In Lieu of Notice is a damages claim and so the recipient has a duty to mitigate that claim. Any earning during the notice period would be deducted. If there are none then jobseekers allowance is deducted as if they were deemed earnings.

https://www.gov.uk/your-rights-if-your-employer-is-insolvent

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