PILON do I have to pay it back if I find work?

llobach

The background.
Our company is about to bite the dust probably this week. It looks like there will be no formal notice of redundancy. There also looks like there will be no money left in the company coffers to pay our owed pay (1-2 weeks worth, overtime or expenses - about 9 months' worth). Most of the staff can find some freelance work immediately after dismissal. Statutory Redundancy Pay will likely be from the government's fund. We will be due our PILON (pay in lieu of notice which we are unlikely to have to work as the company is bust) and it looks like that will have to be applied for from the government fund as well. Also, most staff have no written contract, merely a letter of engagement stating pay and start date - a situation that I assume is to our advantage.

The question.
Is it true that if we do paid work during our notice periods for whatever employer then this is taken off PILON payment? So for example 12wks notice at £380 = £4,560. If I work 3 days at £300/day=£900 will my PILON payment be reduced to £4,560 - £900 = £3,660 or will put another way I have to refund that to the government?

Hope this makes sense.

sagalout1954

Anything here to help http://www.direct.gov.uk/en/Employment/Employees/Pay/DG_10026695

50Twuncle

A simple answer to your question - Do you have to pay your PILON back if you get a job during the time that you are receiving it - NO !!

In fact - you should also be able to sign on during the first 6 months of redundancy - so for at least 12 weeks - you will be receiving over your usual salary !!

getmore4less

21Twinkle wrote: »

A simple answer to your question - Do you have to pay your PILON back if you get a job during the time that you are receiving it - NO !!

In fact - you should also be able to sign on during the first 6 months of redundancy - so for at least 12 weeks - you will be receiving over your usual salary !!

I think you will find this is not true for PILON money from the NI fund,
You don't even get the money up front you have to wait till the statutory notice is over and only pay the full amount if you have no income during that period.

handy guide to redundancy due to the company going bust

http://www.insolvency.gov.uk/pdfs/guidanceleafletspdf/guideforemployees.pdf

key section says

That means that the payment must compensate you for the actual loss you suffered, so we must reduce it by any income you have received or should have received during the statutory notice period.
In other words, you can receive only what you would have earned if you had been allowed to work your notice period.
Again, the statutory maximum we can pay is £380 a week.
Please note - we will send you an RP2 claim form at the end of your notice period because we can only work out how much compensation you may be due when we have details of your income during that time.

50Twuncle

Yes, it does depend on your ex-employers as to the timing of the release of your redundancy payment - although, there is a normally agreed 1 month maximum from your last day of service
But - even with a large lump sum - you are entitled to claim JSA (contribution based) from day 31 of your out of work period - (you forgo the first month) - this is in addition to any PILON !!

The above of course depends on you having paid enough NI .....