Clarity on PILON with settlement agreement

GMAD · 16 August 2018 at 10:29AM

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

getmore4less · 16 August 2018 at 11:28AM

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 · 16 August 2018 at 10:01PM

OP, how long have you worked for them?

GMAD · 19 August 2018 at 10:14PM

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 · 20 August 2018 at 5:57AM

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.

Clarity on PILON with settlement agreement

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