Freelance work and PILON Confusion

littlesaint

Hello,

I was made redundant a couple of weeks ago when my employer of 14 months went into liquidation. I was out of work straight away without being able to serve my one month notice period.

I am now in the process of claiming my outstanding pay, holiday pay and PILON from the government's Insolvency Service. However, I am finding calculating PILON particularly confusing.

The reason is that I was offered some freelance work immediately after I was made redundant. I read that any JSA or work is deducted from your PILON.

Now I assume I am getting the statutory minimum of one week's earnings, rather than a month's earnings, regardless of the fact that my notice period was only a week. Does this mean that my only my first week of earnings are deducted, or is it the first month?

I think it would be laughable if it was a month because even if you only got JSA you'd not get very much PILON after that was deducted.

Also do you deduct gross earnings from gross PILON, net earnings from gross PILON, or something else?

Thanks in advance.

anamenottaken

The PILON is to cover your loss for not getting notice. You are meant to mitigate your losses, lose as little as possible. So the income from your self-employment has reduced the loss to you and therefore you are due that much less compensation because your loss is less.

littlesaint

Thank you for your reply but what I want to know is will my earnings for that week or the whole month be taken into account.

getmore4less

I thought PILON compensation was capped at £380pw

How much work did you do in the first month?

littlesaint

I'm only two weeks into the month and I worked 16 hours in my first week and 32 hours in my second week. I'm not sure exactly how much I'll be paid but it will be less than £380pw.