EIM13890 - PENP formula: how to calculate 바카라 사이트˜D바카라 사이트™

PENP formula: how to calculate 바카라 사이트˜D바카라 사이트™

EIM13872 explains that, with effect from 6 April 2018, the post-employment notice pay element of all 바카라 사이트˜relevant termination awards바카라 사이트™ is chargeable to Income Tax as general earnings. Post-employment notice pay is calculated using the PENP formula (see EIM13880).

In the PENP formula, 바카라 사이트˜D바카라 사이트™ is the number of calendar days in the 바카라 사이트˜post-employment notice period바카라 사이트™. The 바카라 사이트˜post-employment notice period바카라 사이트™ is the period beginning at the end of the last day of employment and ending with the 바카라 사이트˜earliest lawful termination date바카라 사이트™. EIM13898 provides the definition of 바카라 사이트˜earliest lawful termination date바카라 사이트™.

If the 바카라 사이트˜earliest lawful termination date바카라 사이트™ is, or precedes, the last day of the employment, the number of calendar days in the 바카라 사이트˜post-employment notice period바카라 사이트™ is nil.

If the employment contract provides for a contractual notice period which is shorter than the minimum statutory notice required under the law then the 바카라 사이트˜minimum notice바카라 사이트™ for the purpose of calculating 바카라 사이트™D바카라 사이트™ is the length of the minimum notice required under the law.

In cases of summary dismissal, the employee may lose their right to notice period or pay. Where this occurs, the 바카라 사이트˜earliest lawful termination date바카라 사이트™ is the termination date and the number of days in the post-employment notice period (바카라 사이트˜D바카라 사이트™) is nil.

However 바카라 사이트˜D바카라 사이트™ will not be nil where there is evidence that the summary dismissal has been overturned, for example by order of an employment tribunal or where a settlement agreement indicates the employee will be treated as a good leaver. In such a case, 바카라 사이트˜D바카라 사이트™ will be based on the notice the employee was entitled to at the trigger date.

EIM13894 explains how to calculate 바카라 사이트˜D바카라 사이트™ where the employment contract is a limited-term contract. EIM13898 provides the definition of 바카라 사이트˜limited-term contract바카라 사이트™.

Examples to support the explanation of how 바카라 사이트˜D바카라 사이트™ is calculated are available at EIM13892.