We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Clarity on PILON with settlement agreement

Options
On Monday I was notified that my role is being made redundant and as a result have been offered a settlement agreement as follows:

- enhanced redundancy payment c £10,000 (tax free)
- contractual PILON c £3500 (taxed)
- any sum re untaken holiday c £2000 (taxed)

My termination date is 13th Sep (one month's notice). So my question is: does the PILON payment above cover this notice period, or will it be paid in addition? I've received conflicting answers from HR so far.

Some clarity here would be great so I know exactly what to expect.

Thanks all
GMAD

Comments

  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    NO one her can answer that,

    It is what your company decides so you need to deal with them.

    MY old company would give everyone their Full PILON in the payout even if they were given notice earlier.

    they could just say you got paid notice so the PILON is now Zero.


    As it is a settlement agreement you can ask for it written clearly into the agreement that this is a payment at termination and not reduced for any period of notice worked as you won't agree if they don't.
  • Peelerfart
    Peelerfart Posts: 2,177 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    OP, how long have you worked for them?
    Space available for rent
  • GMAD
    GMAD Posts: 45 Forumite
    Tenth Anniversary 10 Posts Combo Breaker
    Have worked with them for 2.5 years. Heard late on Fri that they're including PILON as an extra month. So I'll be receiving normal salary until 13th Sep + settlement and A/L + an additional PILON.

    Am effectively on garden leave for the former and, having started the legal advice process, I think I've now got my head around what's happening.

    Thanks both
  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    Full PILON on termination if done properly can be a canny move for an employer as it can avoid the risk of counter notice should the employer need to change their mind on letting people go.
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 350.9K Banking & Borrowing
  • 253.1K Reduce Debt & Boost Income
  • 453.5K Spending & Discounts
  • 243.9K Work, Benefits & Business
  • 598.8K Mortgages, Homes & Bills
  • 176.9K Life & Family
  • 257.2K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.