When should PILON be paid?

Renegatus

Hi there,

In July, a conversation between myself and my line manager was initiated and we reached a mutual agreement that I would leave the company. At their discretion, the company agreed for me to receive a payment in lieu of notice and that I could leave the company two weeks before my notice period was up.

My contract was terminated on 27 July, and I received the final monthly installment of my salary the day previous. A month later, on 26 August, I received my holiday pay and PILON. I'm aware that this type of PILON should be taxed but are there any stipulations on when PILON should be made? Presumably, it's completely at the company's discretion, or governed by their remuneration terms for regular salary payments.

I could be wrong but this is what I've gleamed from several HMRC documents.

Uncertain

Generally on the first normal payday after leaving unless you have agreed something to the contrary.

If it has not been paid then you need to keep on top of the situation and you have only three months in which to lodge a tribunal claim. Don't be strung along and run out of time.