PILON Query

NorthernG_2

Debt_Free_Chick wrote: »

Looks good to me - you should get three months pay, without any deduction

You could always send your HR manager the link to the bit on DirectGov that you found and tell her "I'm confused, as this part of DirectGov suggests that no tax should be deducted" and see what she says.

Thanks for the confirmation hun

I did send her the link. She reckons she has sought advice and that she has been informed it is taxable but I have my doubts that she has actually done this.

She seems a little out of the depth at the moment so as long as my position is clarified then I will ensure she gets the final payment right

Thanks for your help xx

gwokka

i too have just been made redundandant and have no PILON clause in my contract. the company are terminating my contract immediatley and are therefore in breach of contract. the company aknowledge this and have offered me as damages the equivalent of my net pay for the notice period in my contract. they have said this money will not be on my p45 and as such i wont be taxed on it. i have a number of queries myself that im finding it difficult to get answers to:
1. i have not agreed to the damages or signed anything can i dispute them?
2. i dont really have a dispute with the redundancy procedure, just the damages payment so do i still need to go through the ET route to recover monies i believe im owed?
3. the employer obviously saves money this way i.e not paying tax on salary, employers ni. is this legal?