PILON - Questions

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chrisrawles
chrisrawles Posts: 33 Forumite
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in Redundancy & redundancy planning
Hi,

I found out today that it is looking likely I will be losing my job. The payout package is Statutory. I have been with the company for 12yr 7 months (so 12 yrs for payout). They are also offering PILON as they want it to be done as quickly as possible. Now my understanding is this would mean I am entitled to 12 weeks basic pay in lieu of notice?

Is that right?
Also someone said that payment is capped at £60 a week?

Thanks

Comments

  • chrispy
    chrispy Posts: 94 Forumite
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    Correct 12 weeks Pilon, however as I understand I believe pilon should paid to you at your weekly rate, so if you earn £500 a week they should pay you £6000 for 12 weeks and no I don't believe capped at £60.
  • sangie595
    sangie595 Posts: 6,092 Forumite
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    PILON isn't capped. And they can, provided got have no entitlement to PILON in your contact, have that paid tax free if the employer agreed to do that. They don't have to though. Some employers are nervous about doing it because of falling foul of the HMRC rules. But you could ask.
  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Name Dropper First Anniversary First Post I've helped Parliament
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    The employer only has to compensate to the level you would have got so where they can pay PILON tax free they can keep all the tax and NI.
  • sangie595
    sangie595 Posts: 6,092 Forumite
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    getmore4less wrote: »
    The employer only has to compensate to the level you would have got so where they can pay PILON tax free they can keep all the tax and NI.
    But that is also a choice. They can pay gross if they wish.
  • SRB25
    SRB25 Posts: 1 Newbie
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    Pilon is to be paid if your notice period goes beyond the time that you are put under notice , everyone's is different as per contract ,statutory redundancy is a maximum of £489. 00 a week for every year you have completed .
  • chrisrawles
    chrisrawles Posts: 33 Forumite
    Name Dropper First Anniversary First Post Combo Breaker
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    Thanks for the replies all.
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