Can my employer enforce pilon?

laurel7172

I'm sure you've already thought of this, but if there's any possibility that your employer is doing this in order to deprive you of your pension, you might have to be a little bit sneaky. There's still plenty of time to give you your 12 weeks' notice.

mariefab

Do you know whether the Company usually uses PILON instead of allowing employees to work their notice, or take gardening leave, when their employment terminates?
If PILON is the normal practice when someone leaves, for whatever reason, then they may be able to force it on you.

That said, as there's no PILON clause in your contract you can refuse to accept PILON.
I'd suggest that you refuse in writing and send the letter by recorded delivery.
(Do check and retain copies of any other Company documents first e.g. handbook, policy documents to be sure that the Company hasn't reserved the right elsewhere.)

If, after your refusal, the Company makes PILON that would be a breach of contract entitling you to claim wrongful dismissal.

If PILON isn't the normal Company practice and the terms of your vocational pension state that in the event of redundancy after the age of 55 your pension benefits would be enhanced or topped up to reflect what you would have received at retirement age, perhaps allowing you to elect to retire early; by using PILON the Company would be deliberately breaching your contract for their own benefit and to your considerable detriment.

If that's what you think is going on here, a comprehensive paper trail will assist you in the event of a future claim.

Andy_L

getmore4less wrote: »

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

I suspect that if the OP passes 55 they get early retirement rather than redundancy which is a better package, eg immediate payment of pension without reduction for taking it early

jimbms

Why not just tell them of this and say if you give me gardening leave I will go quietly, if not I will put appeals in and make things awkward for you and give you some bad publicity.

Googlewhacker

jimbms wrote: »

Why not just tell them of this and say if you give me gardening leave I will go quietly, if not I will put appeals in and make things awkward for you and give you some bad publicity.

Blackmail is always the best way...........

kipper99

Mariefab, this is the first major redundancy exercise that our (public sector) company has engaged in. I think they will start to use pilon regularly now, but I have been informed that some other members of staff were offered garden leave last year.

To clear up the point about age 55. If you get made redundant after 55 you get your pension, unreduced at that point. Get made redundant before 55 and you don't get your pension.

Thanks, all. There is supposedly a very good employment law solicitor in the next town, and I shall be paying him a visit.

mariefab

Good, because unless they can demonstrate that PILON (even without a contactual clause) has for some time been established as the normal custom and practice of the business they shouldn't be able to force it on you without your consent.

There is supposedly a very good employment law solicitor in the next town, and I shall be paying him a visit.
With your pension rights at stake this is an excellent idea.

kipper99

Thanks. My biggest worry is that they just say "OK, your solicitor says this, ours says different. So sue us".

Time will tell, I guess.

Childof12months

For young folk like me who thought Pilon was something to do with electricity supply:

"Payment In Lieu Of Notice (PILON)"

Premier_2

What would you prefer?

12 weeks pay and that period of time to do with as you like?

Or

12 weeks pay ... but you'll have to turn up for work on time, not leave early, not take a longer than allowed lunch break and sit there twiddling your thumbs for 3 momnths because they've not got any work for you. Don't forget, you'll have to pay the usual cost of commuting too.

I'm sure, within 3 months of having absolutely nothing to do, you'll be so mind mumbingly bored, you'll end up doing something they can sack you for.

Take the money, spend the time as you wish, and apply for the vocational pension when you reach 55.