EIM13892 - PENP formula: how to calculate ‘D�: examples
This page provides examples to support the explanations of how ‘D� (see EIM13890 and EIM13892) is calculated for the purpose of the PENP formula (see EIM13880).
Example 1
An employee, having been employed for exactly one year, has their employment terminated on 25 November 2018. »Ê¹ÚÌåÓýapp employee’s employment contract does not provide any entitlement to a notice period. However, the employee is entitled to a statutory notice period of a minimum of one week. »Ê¹ÚÌåÓýapp employer terminates the employment without providing any notice. »Ê¹ÚÌåÓýapp employee’s last day of employment is the same day as the employment is terminated. »Ê¹ÚÌåÓýapp post-employment notice period is the number of days of notice the employee was statutorily entitled to but which was not provided. »Ê¹ÚÌåÓýapp post-employment notice period (‘Dâ€�) is 7 days.
Example 2
An employer gives notice to an employee on 18 June 2018 that their employment will be terminated on 25 June 2018. »Ê¹ÚÌåÓýapp employee’s employment contract provides entitlement to a minimum notice period of 30 days. »Ê¹ÚÌåÓýapp employee’s last day of employment is 25 June 2018. »Ê¹ÚÌåÓýapp post-employment notice period is the number of days of notice the employee was entitled to but which was not provided. »Ê¹ÚÌåÓýapp employee was entitled under his employment contract to receive 30 days of notice. »Ê¹ÚÌåÓýappy actually received 7 days of notice. »Ê¹ÚÌåÓýapp post-employment notice period (‘Dâ€�) is 23 days.
Example 3
An employee has a limited-term contract which will terminate on 3 October 2019 at the expiration of the fixed term. »Ê¹ÚÌåÓýappre is no provision within the employment contract for the employment to be terminated before the expiration of the fixed term. »Ê¹ÚÌåÓýapp employer terminates the employment on 4 September 2019. »Ê¹ÚÌåÓýapp employee’s last day of employment is the same day as the notice to terminate is given. »Ê¹ÚÌåÓýapp post-employment notice period is the number of calendar days from the end of the day the employment is terminated and the day of the limiting event. »Ê¹ÚÌåÓýapp post-employment notice period (‘Dâ€�) is 29 days.
Example 4
Following a disciplinary procedure for gross misconduct, an employer terminates the employment with immediate effect. »Ê¹ÚÌåÓýapp ‘earliest lawful termination dateâ€� is the last day of the employment, so the number of days in the post-employment notice period (‘Dâ€�) is nil.