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Redundancy, PILON & salary advance questions

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Redundancy, PILON & salary advance questions

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GoldEarringsGoldEarrings Forumite
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Hi all,
I've lumped a couple of points into one post to try & keep things simpler!
I was told earlier this month I'm most likely redundant when the proposed 'consultation period' has concluded (this commenced the same day I was informed).

2 burning issues for me;

1: I understand I'm likely to receive 1 months PILON as well as redundancy pay at the end of October. Am I free to start a new job as soon as I have stopped working for the company or do they have any right to stop this as I am in a period of paid notice? I need to work to pay mortgage etc etc.

2: The company pays new employees 2 months in arrears but 'compensates' this by 'loaning' a month's anticipated salary when an employee starts. The employee is expected to pay this back on leaving although some employees have left (immediately after their monthly salary has been paid, without giving notice) and have not repaid this loan. My query is does this loan need to be paid back if I'm being made redundant? Its not as if I'm choosing to leave the company & I would most likely stay if I had that option. I don't recall any mention in the advance salary paperwork regarding repayment in redundancy....

Given the (terrifying!) uncertainty of the jobs market, I would obviously like to avoid repaying this if possible. Can I argue it was irresponsible lending as it was only paid on the assumption I had the means to repay it without any personal financial checks.....?

Or am I just hopelessly naive? :cool:


  • Hopelessly naive. Seriously? You have to ask. If you don't repay the loan, assuming they don't just deduct it from your final payment, then they have six years to come after you.

    If it is PILON and not gardening leave, you can stay another job immediately.
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