PILON question - can anyone help?

carmen_blue

This is a little confusing but hopefully someone will be able to help. I am being made redundant as of 25 Aug. I have a three-month notice period and my three year anniversary would have been on 1 Oct.

I originally thought they would pay me my entire package around 25 Aug (my package includes my three month notice as well as two weeks for the two years I've been with the company).

They are now saying that I will be paid as normal the end of August and then the rest of the money (the money owed for my three months plus the two weeks) will be paid in my 'September pay packet'. If I am getting a 'September pay packet', then surely they are not really 'paying me in lieu of notice'. My argument is this: if they do not pay me in full around 25 August, then they are not paying me in lieu of notice. If they are not paying me in lieu of notice, then I am technically employed on 1 Oct. That takes me into three years with the company so they should pay me an extra week.

Or are they allowed to 'pay me in lieu of notice' one whole month after my 'official' last day?

Pete111

The short answer is:

Yes

Sorry, but it may be they have closed August payroll already so the next available payroll (Sept) is a reasonable point to pay you your termination amounts (redundancy + PILON + outstanding holiday etc).

Your employment still ceases on the 25th August and you are not being asked to work your notice at all - being paid out a few weeks later does not change this. You would still be perfectly entitled to start a new job on the 26th August if you wished.

Good luck going forward.

P