Advice on Redundancy & PILON

Jacksnap_2

I am due to be made redundant and my employment contract does not contain a PILON clause.

However when the company advised that I could have the details of my redundancy deal, they also included on there the details for PILON in terms of my basic salary [certainly some of the staff they have made redundant in the past or dismissed have been PILON].

I have read on the government web site that PILON packages should include all benefits that make up your salary package in the case of a PILON clause.

As my contract does not include this clause but the company has advised me of a PILON basic salary in my advance redundancy details I have a couple of questions.

1. Am I entitled to request PILON and would the company have to give this to me.

2. I fully understand that my basic salary would be taxed, however my standard salary package also includes private medical care and company pension. Although the company extends the medical care cover for the full PILON period, they do not make a monetary pension contibution to cover the pension contributions they would have paid without PILON so can they choose to provide some benefits of your normal salary package but refuse to pay other benefits i.e. refuse to reimburse you for the benefit contributions they would have made without PILON ?

Any advise from anyone who has experienced this would be appreciated.

getmore4less

The company decides PILON not you.

Without a PILON clause in contract you may be able to negotiate tax free allthough if the company has paid PILON in the past as taxed pay this may be harder.


Are they paying the pension as normal into the pension?

Jacksnap_2

Thanks for that.

The company line is that if you work your notice then they will pay into pension fund and you get the medical cover. If they decide on PILON then they will still provide medical cover for PILON period but will not pay into your pension or re-imburse you the value of what they would have paid in.

Their argument for this is that there is no PILON clause in the contract, however they have provided pILON in past to others and never paid the pension contribution either to person or pension fund.