Redundancy and PILON on Furlough 29 June 2020 at 2:44PM in Coronavirus Support and Help 9 replies 435 views

markm60

I have been on furlough for 12 weeks and now my employer is saying my role is at risk of redundancy. I have been working with them for 15 months and I have a contractual notice period of 3 months. They are offering 3 months at my salary, which was cut by 10 % at the same time I was furloughed. I have requested PILON so I can have a complete separation from my employer and i am a free agent (Ie not on furlough)  They have refused me PILON- they say they cannot afford it.
 I suspect they are using the furlough scheme to offset some of their contractual liability / notice payments to me.  Do I have any rights to insist on a PILON?  

[Deleted User]

No you do not have any rights to PILON, it is entirely as the discretion of your employer. 

sharpe106

PILON is a choice for an employer if they don't want an employer to return to work. So they can pay an employee off basically. They do not have to.

Grumpy_chap

The employer can use furlough to off-set notice pay.
The employer cannot use furlough to off-set PILON or redundancy pay.
PILON is the employer's choice, you cannot insist on PILON.
If you were the employer, would you chose PILON, or pay over the notice period and take advantage of the furlough off-set to the costs?  Entirely legal.

Jeremy535897

You should accrue more holiday pay as a result of them not using PILON. See
https://www.xperthr.co.uk/faq/if-an-employee-receives-a-payment-in-lieu-of-notice-will-their-annual-leave-entitlement-accrue-up-to-the-termination-date-or-the-end-of-the-notice-period/88429/

markm60

Thanks for the initial feedback. PILON suits me as it would be a lump sum and above all freedom and immediate availability. Having a 3 month notice period prevents taking up interim roles where immediate starts are required. PILON opens up this avenue. Hence my query. Keeping me furloughed through redundancy restricts this option, or does it?

sharpe106

https://www.xperthr.co.uk/faq/where-an-employee-has-been-given-notice-of-redundancy-if-they-seek-to-leave-before-the-end-of-the-notice-period-to-take-up-a-new-job-will-this-affect-their-statutory-redundancy-payment/62117/

https://www.acas.org.uk/your-rights-during-redundancy/redundancy-notice

Grumpy_chap

A lot of people, if they found something to start while still on gardening leave, would just do it anyway.

Jeremy535897

markm60 said:

Thanks for the initial feedback. PILON suits me as it would be a lump sum and above all freedom and immediate availability. Having a 3 month notice period prevents taking up interim roles where immediate starts are required. PILON opens up this avenue. Hence my query. Keeping me furloughed through redundancy restricts this option, or does it?

PILON always suits the employee, subject to the holiday pay point. It's far better than actually working, and normally that's true for the employer too, but not if they get an 80% contribution to paid notice, which they will if they keep you on furlough.

Grumpy_chap

I always understood that you accrued holiday pay for the notice period whether PILON or garden leave?  I'd argue that the annual leave that would accrue is part of the value that is covered by the PILON payment.  Jeremy's link suggests otherwise.

If you are on garden leave, then the annual leave definitely accrues, but it may be of limited value as the employer can give notice that the annual leave is to be taken on a specific date within the notice period.

Oftentimes, employers probably simply add the annual leave entitlement to the PILON / garden leave final payment as they don't want to argue the case.  Depends how totally strapped for cash the employer is.  The days of enhanced payouts seem to have gone, except the big unionised sites.