PILON and savings from not travelling to work

boots_babe

Hi,

This is my 2nd post as I didn't want my 2 queries to become muddled. Having just had my first formal redundancy meeting, it was mentioned that I will of course be paid for PILON given that they don't want me to work my full notice, however they would have to factor in that I would be saving on travel costs (given that I will no longer need to travel into the office during the PILON period).

It was only mentioned in passing and I chose not to say anything at the time, as I wanted to go away and do my own research.

From everything I have read, I don't believe that my employer can deduct anything from PILON due to travel savings from not working, is that right?

The only other thing I could think of, is that I do also have a contractual car allowance, paid to me at a set figure monthly. Is it possible for them to decline to pay that during my PILON period?

Many thanks.

Hoenir

What does your contract of employment say with regards to the car allowance. 

QrizB

Pay in lieu of notice is what it says it is; it's not usually "pay in lieu of notice less commuting costs, the price of that Pret sandwich you always have for lunch and the new shoes you'd otherwise have bought in September".

boots_babe

Hoenir said:

What does your contract of employment say with regards to the car allowance. 

Hmm so I have dug out my contract and read through, it doesn't actually mention anything anywhere regarding a car allowance. However this was offered as part of the original job offer over 10 years ago, and has been paid in full every year since. As it is for some reason not written in my contract, does this mean they could refuse to pay me this portion for the period of my PILON?

General_Grant

Is there a clause in your contract which allows them to PILON?  
If not, then they should give you the required notice (probably 10 weeks unless you started much later than the date of the original offer or if your contract provides for more than statutory amount).  They can then pay for that period but not require you to attend or do any work.
I would expect that, for the time you are not required to attend work, the car allowance would not be relevant and therefore not paid.
Perhaps your other thread will cover some of this - I have not sought to find it.

lincroft1710

I would have thought that as you are not attending work and thus not using a car, it would not be unreasonable, not to pay you a car allowance. Employment legislation or contract may say differently

Hoenir

boots_babe said:

Hoenir said:

What does your contract of employment say with regards to the car allowance. 

Hmm so I have dug out my contract and read through, it doesn't actually mention anything anywhere regarding a car allowance. However this was offered as part of the original job offer over 10 years ago, and has been paid in full every year since. As it is for some reason not written in my contract, does this mean they could refuse to pay me this portion for the period of my PILON?

As part of your role with the company are you expected to travel to client's premises on company business ? 

Undervalued

boots_babe said:

Hoenir said:

What does your contract of employment say with regards to the car allowance. 

Hmm so I have dug out my contract and read through, it doesn't actually mention anything anywhere regarding a car allowance. However this was offered as part of the original job offer over 10 years ago, and has been paid in full every year since. As it is for some reason not written in my contract, does this mean they could refuse to pay me this portion for the period of my PILON?

Have you paid tax on this car allowance for the past ten years? Any payment for travelling to your regular place of work is normally taxable income.

If this is a "grey area" I'd think long and hard before rocking the boat!

boots_babe

Hoenir said:

boots_babe said:

Hoenir said:

What does your contract of employment say with regards to the car allowance. 

Hmm so I have dug out my contract and read through, it doesn't actually mention anything anywhere regarding a car allowance. However this was offered as part of the original job offer over 10 years ago, and has been paid in full every year since. As it is for some reason not written in my contract, does this mean they could refuse to pay me this portion for the period of my PILON?

As part of your role with the company are you expected to travel to client's premises on company business ? 

Yes I am, I spend a lot of time travelling the country to identify potential new sites for retail store openings. 

boots_babe

General_Grant said:

Is there a clause in your contract which allows them to PILON?  
If not, then they should give you the required notice (probably 10 weeks unless you started much later than the date of the original offer or if your contract provides for more than statutory amount).  They can then pay for that period but not require you to attend or do any work.
I would expect that, for the time you are not required to attend work, the car allowance would not be relevant and therefore not paid.
Perhaps your other thread will cover some of this - I have not sought to find it.

My contract stipulates a 6 month notice period. 

It also says they can choose to offer me garden leave or PILON. I'm perfectly happy with The PILON approach, would prefer that tbh.

boots_babe

Undervalued said:

boots_babe said:

Hoenir said:

What does your contract of employment say with regards to the car allowance. 

Hmm so I have dug out my contract and read through, it doesn't actually mention anything anywhere regarding a car allowance. However this was offered as part of the original job offer over 10 years ago, and has been paid in full every year since. As it is for some reason not written in my contract, does this mean they could refuse to pay me this portion for the period of my PILON?

Have you paid tax on this car allowance for the past ten years? Any payment for travelling to your regular place of work is normally taxable income.

If this is a "grey area" I'd think long and hard before rocking the boat!

I've paid tax on the car allowance yes. The car allowance is not for travelling to normal place of work, but rather to travel to different places all over the UK.