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PILON due to long term illness

Hi all,

I just want to check the situation on this on behalf of my Dad. He's been offered PILON due to long term sickness and I wanted to check what the obligations are here. I think he's been offered a fair deal as from what I can tell via Google the statutory pay is 1 week per years service (same as redundancy) but I want to be sure he's getting a fair deal as it's incredibly important at this time (I'd say he's probably been offered the equivalent of 5 months net pay for 6 years service)..

I've searched around and can't actually find a clear assessment of an employers obligation when it comes to ending employment due to long term sickness.

Thanks in advance for any help.

Replies

  • edited 4 February 2017 at 4:39PM
    UndervaluedUndervalued Forumite
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    edited 4 February 2017 at 4:39PM
    Hi all,

    I just want to check the situation on this on behalf of my Dad. He's been offered PILON due to long term sickness and I wanted to check what the obligations are here. I think he's been offered a fair deal as from what I can tell via Google the statutory pay is 1 week per years service (same as redundancy) but I want to be sure he's getting a fair deal as it's incredibly important at this time (I'd say he's probably been offered the equivalent of 5 months net pay for 6 years service)..

    I've searched around and can't actually find a clear assessment of an employers obligation when it comes to ending employment due to long term sickness.

    Thanks in advance for any help.

    An employer is fully entitled to terminate an employee's contract in the event of long term sickness, providing the follow the correct steps and pay statutory notice (or contractual notice if greater).

    Statutory notice is one week for each complete year of employment up to a maximum of 12.

    It is possible that the firm's pension scheme, or some other insurance included as an employment benefit, may give an additional entitlement.

    Otherwise anything they offer over and above notice pay is a gesture of goodwill. It may be conditional on signing a settlement agreement (for which he must receive independent legal advice) as he would be signing away any right to make an unfair dismissal claim.
  • Thank you. I thought they'd given him a good deal (showed compassion) and it seems that's the case.
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