Service date falls in notice period but taking PILON

aetc

Hi,

I've been put at risk of redundancy and am going through a consultation process. The last meeting is 20 Oct and if I take PILON the exit date would be 24 October, or I were to work my notice it would be 24 November.

The redundancy payment is based on full years' service. My service date falls on 20 November, ie. almost 4 weeks after the PILON exit date, although within the notice period if I was to work it.

I believe I have the option to either take PILON or continue my employment in my notice period albeit on garden leave, but I want to take PILON. (Also, the contract references Notice Period and Garden Leave, though not specifically redundancy and PILON).

If I've been made redundant by the employer and I want to take PILON, can it be seen that I would hit my service date and therefore would be entitled to another year's full service of the redundancy payment? Ie. is there a parity between PILON and working out notice with regards to service date/redundancy?

Thanks

dori2o

aetc wrote: »

Hi,

I've been put at risk of redundancy and am going through a consultation process. The last meeting is 20 Oct and if I take PILON the exit date would be 24 October, or I were to work my notice it would be 24 November.

The redundancy payment is based on full years' service. My service date falls on 20 November, ie. almost 4 weeks after the PILON exit date, although within the notice period if I was to work it.

I believe I have the option to either take PILON or continue my employment in my notice period albeit on garden leave, but I want to take PILON. (Also, the contract references Notice Period and Garden Leave, though not specifically redundancy and PILON).

If I've been made redundant by the employer and I want to take PILON, can it be seen that I would hit my service date and therefore would be entitled to another year's full service of the redundancy payment? Ie. is there a parity between PILON and working out notice with regards to service date/redundancy?

Thanks

I may be wrong but PILON doesn't change the date at which the notice ends, it simply means the employer is willing to release you from the contract early.

I know when my Dad left a previous employer having been there a number of years he left on PILON but all his holidays, service etc was calculated upto the date the notice would have ended. This gave him an extra 1 months redundancy pay as like you his anniversary lay within the notice period.

getmore4less

For notice the service at date of notice is used

For redundancy you have to use the statutory notice from the date of notice or the actual termination date if later.

How many years have you worked there?


Pilon does change the notice that's what it is "Pay In Lieu of Notice."


Holiday accrued during the notice that is part of the PILON period does not have to be counted the compensation allthough some companies do.

Undervalued

dori2o wrote: »

I may be wrong but PILON doesn't change the date at which the notice ends, it simply means the employer is willing to release you from the contract early.

You are wrong I'm afraid.

Gardening leave wouldn't change the date the employment ends but PILON does. The employment ends early but the employee is compensated by receiving pay in lieu of notice.

Technically, unless the employment contract makes provision for PILON, it is a breach of contract by the employer! However under the majority of circumstances an employee is happy to be paid and not have to work so it is not an issue.

aetc

Sorry for the lack of a recent response. I've been there 1 year 11 months, the 2nd year anniversary will fall in the notice period.

The contract covers it in a section "Notice Period and Garden Leave".

The applicable wording is: "Company may make a payment to you in lieu of notice equivalent only to (i) the salary you would otherwise have received during your notice period or during any unexpired period of notice (which, for the avoidance of any doubt, does not include any sum in respect of bonus or commission)..."

PILON covers compensation for the loss of the notice period; should I be separately compensated for the loss of a year's service payment due to being make redundant (albeit it's my choice to take PILON over garden leave)?

getmore4less

No you can add 1 week to the date(statutory notice) and if that takes you over 2 years you qualify for statutory redundancy.