Garden Leave or PILON - tax implications

ChuckMountain wrote: »

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The other thing with gardening leave is if you were near a work anniversary, they would have to pay an additional years service.

That can still apply for the redundancy.

With PILON you add on the statutory notice(1week per year max 12) to get the relevant date for redundancy service if it is later than the termination date.

prowla wrote: »

I think that with PILON your leave is calculated as if you had worked to the end of your notice period.

PILON is the compensation for what you would have got if you had worked your notice.

That can be the same as net pay the employer can keep the tax if it can be paid tax free.

As you can always take the holiday that would accrue there is nothing to compensate.

Companies don't have to pay the minimum they can pay more, some are more generous some just don't know they can keep the tax and don't have to pay the holidays.