Payment in Lieu of Notice (PILON)

GemmaE

Hi

I know this isn't strictly what this forum is for, but I read a thread the other day where someone mentioned PILON entitlements.

Unfortunately my husband was made redundant on Friday, and was offered 4 weeks PILON, which we thought was OK, however after reading the PILON is 1 week per year of service we have managed to get an additional 2 weeks pay.

I can't find the thread or remember who it was that posted this remark, but I wanted to pass on my huge thanks as this will give us some more breathing space while OH is searching for a new job

Thanks!!
:T

reheat

I think your query is exactly what this forum is for

klfarndon

I'm about to be made redundant. Does anyone know if holiday is accrued during PILON? What I mean is, if I am allocated 2 days holiday per month and I have a 1 month notice period does the employer owe me 2 days holiday on top of my notice pay? If you have a link to a website that confirms this then please let me know.
Thanks

latecomer

I think so but I'm not 100% sure. I'm trying to figure out the same thing too so I'll let you know what I find out.

Joannef_2

You get your accrued holiday up to the date your contract is terminated. If you are paid PILON then the holiday would be calculated up to your last working day and not for the PILON period. I queried this when I was made redundant and I didn't get my holidays paid.

ceridwen

Hmmm....it would be useful at this point to see a suitable legal link to see whether employers are legally entitled not to give any holiday during a notice period if one doesnt actually physically work it.

I am certainly taking it that my holiday entitlement is based on the time up to and including last day of service (even if its PILON - rather than me actually working the notice out) should anything happen to my job.

Has anyone got a suitable link on this purlease? - as I suspect last poster's employer was doing a "try-on" not to give leave for the notice period. It would seem very odd to me to have the due leave if one works the time out - but not if one doesnt - particularly as its down to the employER whether one actually works the notice out or no. I would have thought a notice period would be treated the same for holiday accruing purposes - whether one works it out or no?

EDIT: I just found a web thing from a legal firm re compromise agreements - and, in that, it specifically stated that there would be no payment for holiday accrued during PILON. Hmmm....well I suppose from that - one would take it that there would probably not be holiday pay for holiday accrued during that time even if it wasnt a compromise agreement situation....

Presumably - the logic behind this is that one takes holiday accrued during that unworked notice period DURING that notice period (whether one wants to or no). Darn it....

latecomer

Well I should be able to confirm it one way or the other next week as I will ask it at the time my package detail is given to me.

BlueIsTheColour

Holiday pay is based on your effective date of termination, so if PILON was given, there wouldnt be any holiday accrued for that period, but if you were on garden leave there would be.

For example, made redundant today and given PILON, effective date of termination is today, so only holiday accrued up to today

or

made redundant today, put on garden leave for 4 weeks, effective date of termination is 22nd May, holiday accrued up to that date

or

made redundant today, working 4 weeks notice, employer gives notice they wish me to take my holiday during notice period, effective date of termination is still 22nd May but assuming (for ease of maths) I had one weeks holiday left I would actually finish work on 15th May.

Hope this helps? This was how I had always understood it to be but having just looked at the following maybe I'm wrong....

http://www.businesslink.gov.uk/bdotg/action/detail?r.l1=1073858787&r.l3=1074038949&r.lc=en&type=RESOURCES&itemId=1075081896&r.l2=1073876974&r.s=sc

BlueIsTheColour

Here's some more info I found in another thread, thanks to Anteater for posting it, it comes from XpertHR, an HR advisor website

If an employee receives a payment in lieu of notice, will his or her annual leave entitlement accrue up to the termination date, or the end of the notice period?
If an employee receives a payment in lieu of notice, rather than being served notice, the contract of employment ends on the termination date. Normally the employee will be entitled to be paid for what would have been the notice period, and to receive any other benefits, including annual leave, that would have accrued during that period. Therefore annual leave entitlement will accrue up to end of the notice period, whether the right to make a payment in lieu is reserved in the contract or not.
It is only where it is made clear in the contract that the right to make a payment in lieu is reserved, and that annual leave will not accrue beyond the termination date in the event of a payment in lieu being made, that it may be argued that annual leave will accrue to the termination date only, rather than the end of the notice period.

Debt_Free_Chick

PILON is pay in lieu of notice i.e. instead of notice.

If you get the pay, you're not getting the service. If you're not getting the service then no holiday or any other entitlement accrues.