Can my employer enforce pilon?

kipper99

I could be made redundant in the next few months.
Should I not find an alternative role after being on the 'at risk' register for 3 months, my employer wants to dismiss on the grounds of redundancy, with 12 weeks pay in lieu of notice.
This puts me in a tricky spot. If they were to give me gardening leave instead, it would take me past the age of 55 and I would get my vocational pension, but takin pilon would leave me just short.

So the question is, can they make me take pilon when I don't want to?

There is no mention of pilon in my contract of employment, but it does state I should get 12 weeks notice.

Thanks.

nimbo

ooooh bump, and good luck sweetie.

i just popped on here as i fear i may be made redundant.... looking for advice etc....

laurel7172

Have a look at this:

http://www.hallett-els.co.uk/FreeFactsheets/Doc.aspx?id=76

If the contract of employment (see PAYG) does not expressly provide the employer the right to make a payment in lieu of notice, the giving of a payment in lieu of notice with the requirement that the employee does not work the rest of the notice period will convert a resignation into a Dismissal,- with associated problems and risks. In any event, to cover the contractual rights of the employee if the employer is to make a payment in lieu of notice it must cover the loss of ALL contractual benefits of the notice period- pay, health insurance, pension contributions, use of company car etc.

I'm not a lawyer-on an issue this important, I'd say you need one. Union membership would look like a bargain at this point.

flashnazia

The employer can make you take pilon, even if it's not in contract.

The good news is, if not in contract, the payment is seen as compensation not earnings therefore not taxable or liable for NI.

kipper99

flashnazia wrote: »

The employer can make you take pilon, even if it's not in contract.

The good news is, if not in contract, the payment is seen as compensation not earnings therefore not taxable or liable for NI.

Not much of a comfort in the circumstances, but thanks anyway. The thought does occur that if an employer can legally force you to accept terms that aren't in the contract of employment, then how much is a contract of employment worth, if it can be broken with such impunity?

Googlewhacker

Talk to ACAS and see what they say

kipper99

I phoned them last week. Asked them the question about enforcing pilon and if it breached my contract of employment. The reply was "Well, they MAY be breaching it..." I'll give them another go, thanks.

getmore4less

Why does it stop you taking the pension at 55?
If not what difference does it make?

kipper99

Because as I understand it, if I was given pilon on Nov 1st, that's when my contract with my employer terminates.

If I was given garden leave, then my 12 week notice would start on Nov 1st, and carry me past my 55th birthday?

Uncertain

flashnazia wrote: »

The employer can make you take pilon, even if it's not in contract.

I don't think this is correct.

If there is no provision for PILON in the contract then it would put the employer in breach of contract unless both parties agreed.

There are very few circumstances where it is a problem but, sadly, this is one. In most other cases employees are normally only too pleased to be paid and not have to work.

As others have said the OP needs good legal advice on this from an employment specialist.

getmore4less

kipper99 wrote: »

Because as I understand it, if I was given pilon on Nov 1st, that's when my contract with my employer terminates.

If I was given garden leave, then my 12 week notice would start on Nov 1st, and carry me past my 55th birthday?

I understand that, but why does that effect the pension and how?