Income Tax (Earnings and Pensions) Act 2003 section 402D

Post-employment notice pay

Section 402D sets out how to calculate the "post-employment notice pay" (PENP) when an employee's employment is terminated, which represents the amount of a termination payment that is equivalent to the pay the employee would have received had they worked their full notice period.

Access full legislation.And much more.

By becoming a member, your team gets full access to Tax World research tools and source-backed tax resources.