PILON Anniversary overlap.

Jonnigee

Hi there, I would like some clarification in relation to my current position with my employer. I have been advised that my job role has been separated and phased out and the business are relocating the department to another country. I’ve had my group consultations and 3 of the scheduled 4 individual consultations, we have no union representation here. I have been provided with my payment schedule which calculates my years served and redundancy payment based on statutory calculations, there is also a figure stated for PILON, I have banked all of my holiday entitlement since January(calculated at 2.08 days p/m). Now, my issue centres around my 5th year anniversary, my start date was 1st September 2010, I have been given an end date of 31st July, which means my service to date will be 4 years 11 months and leaves me 31 days short of my 5th anniversary, aside from an extra years calculation I believe that 5 years’service also has an implication with the statutory calculations. My employer wasn’t able to confirm an end date when the redundancy process first started and they have always stated that they would consider honouring my anniversary if it fell close to my end date, I have asked for confirmation at every consultation but they continue to maintain their stance saying that they will consider it closer to the time once we have an end date firmed up. Now that we have an end date they have said that they are not obliged legally to honour the 31 day shortfall and will not consider the extra year (my colleague is 4 days short and they have told her the same thing). I was wondering where we stand as the PILON period for us both would effectively take us over our anniversary dates and would mean an extra payment. I’ve read a few examples on various google search returns which state that all benefits etc that would occur throughout the PILON period must be applied. I want to know where I stand and what to say prior to my final consultation meeting later this week. Many thanks in advance.

getmore4less

The most you can add on to a termination date is the statutory notice which will be 4 weeks if less than 5 years at the time of the termination/notice.

4 weeks will still leave you short but may not for your colleague.

What you could argue is that the notice starts now(or soon) and you use up some/all the notice by the 31July so as they are paying extra PILON that( or some of it) can be paid as part of the redundancy package tax free upto £30k
(not all employers are keen on doing this)

Your notice period/pay/PILON should be the contractual notice not statutory.

p00hsticks

I'm not an expert but for what it's worth, here are my thoughts ...

does your contract allow your employer to pay you PILON instead of serving you notice ? If so, I don't think there's anything you can do - as the name suggests, PILON is Payment In Lieu of Notice, so your employment contract is terminated with immediate effect.

If your contact doesn't say that you employer is entitled to pay PILON instead of serving you contractual notice, then I think you could insist on working your notice out, and if this took you past your anniversary date then you'd be entitled to another years redundancy payment.

General_Grant

Have they actually given you notice? Is the schedule illustrative or have they formally given you notice to terminate your employment on 31 July?

Your statutory notice entitlement is 4 weeks. If they have formally given you notice, then you have received more than statutory. What is contractual notice period?

Do you work fewer than 5 days a week? If not then that holiday accrual presumably does not take account of bank holidays which you do not work.

Jonnigee

General_Grant wrote: »

Have they actually given you notice? Is the schedule illustrative or have they formally given you notice to terminate your employment on 31 July?

Your statutory notice entitlement is 4 weeks. If they have formally given you notice, then you have received more than statutory. What is contractual notice period?

Do you work fewer than 5 days a week? If not then that holiday accrual presumably does not take account of bank holidays which you do not work.

They have informed us that 31st July will be our last working day, I have been told that I will receive statutory pay (1 week) for 1 year service under the age of forty and enhanced 3 weeks x 3 years for each year 40+, the notice period for less than 5 years service is 4 weeks, any service over 5 years is 4 weeks plus one week for each additional year. I work 5 days a week 38 hours and currently have 18 days holiday banked. I need to know if my PILON notice period will include my anniversary date (my contract start date is 1st Sep 2010). I am still waiting for the formal written confirmation of the end date at so far it was just communicated verbally. If my benefit end date overlaps my anniversary should that count as an extra years' service?

p00hsticks

Jonnigee wrote: »

.the notice period for less than 5 years service is 4 weeks, any service over 5 years is 4 weeks plus one week for each additional year.

Jonnigee wrote: »

. I need to know if my PILON notice period will include my anniversary date

LIke I said in my previous post, I'm not an expert, but I think you are confusing yourself talking about a 'PILON notice period' - PILON stands for Payment In Lieu of Notice, so you get either a PILON payment or so many weeks notice, but not both.

If your employment contract allows for it, then your employer can give you a PILON payment instead of giving you the contractual number of weeks notice, and your employment will finish straight away.

Jonnigee wrote: »

. They have informed us that 31st July will be our last working day

Jonnigee wrote: »

. I am still waiting for the formal written confirmation of the end date at so far it was just communicated verbally.

So ther is every chance that you'll be given the required four weeks notice prior to the 31st July end date, in which case PILON won't come into things anyhow.

It sound pretty clear to me that the thinking is that your empoyment wil lterminate on 31st July 2015, which is before your anniversary date.

getmore4less

I think you have misunderstood how it works.

Statutory notice is based on service at the time the notice is given you can't increase that over 4 weeks unless you stay to the 31Aug.

Service for redundancy is based on the termination date or if PILON is paid then you can add unused statutory notice to get a later date.

As I said earlier the best you can do is a 4 weeks to the termination date.

4 weeks onto the 31July is 28th August so still short of the required date for the redundancy