PILON Clauses Explored
It is increasingly common for employees to receive a payment in lieu of notice rather than work their contractual notice period. In most circumstances this will involve a single lump sum payment to the employee to compensate them for what they would have earned during their period of notice.
Much confusion surrounds payments in lieu of notice (PILON), particularly in the context of settlement negotiations, whether it is their tax status or how to use them as an effective negotiating tool.
This webinar will review the key issues to consider.
What You Will Learn
This webinar will cover the following:
- How to draft an effective pay in lieu of notice clause
- Where the difference between statutory notice and contractual notice becomes relevant
- The difference between PILON and garden leave and how to choose which option is best
- Whether holiday pay and other contractual payments still accrue when a PILON payment is made
- Taxation of payments in lieu of notice - how April 2018 made such a difference
- When an employer might end up being in breach of contract by paying in lieu of notice and what might be the unintended consequences
- To what extent an employee has to give credit in a tribunal case for monies they have earned during what would have been the contractual notice period.
This webinar was recorded on 24th February 2020