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Advice on PILON and notice relevant dates

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  • Advice on PILON and notice relevant dates

    Hi, I wonder if anyone could advise on my situation.

    I have had my role terminated 2 and a half weeks before my 2 year employment anniversary a few days back. I was given cost-cutting as the reason I was specifically told that this is not redundancy since I have not been employed for 2 years. I have a contractual notice period of 3 months and my contract only mentions gardening leave and does not mention payment in lieu. When informing me of the termination of employment they said I would receive PILON ending my employment on the same day I was informed.

    My understanding is that they can't force me to take PILON since it's not in my contract and my view is that if I were instead placed on gardening leave and effectively worked my 3 months notice, that would take my employment beyond 2 years and so I should be handled through standard redundancy process with due compensation. I am being "forced" to accept PILON even though it's not in my contract? (my employer insist that it's at their discretion to do this i.e. it's not an offer). And, they are not offering me the option of gardening leave.

    So, I am being forced to take PILON when it materially affects ongoing benefits, pension contributions and redundancy compensation. Then there is the whole issue of the fact that redundancy processes were not followed i.e. no consultation, no selection etc. They have also given me no route to appeal.

    Where do I stand with this? Do I have a case for unfair dismissal?

    Also, they said that the PILON will be paid into my account on the next payday at the end of May. If I want to challenge my employer, should I refuse the payment in writing or can I wait for the payment to arrive and then challenge them? I ask because I'm concerned that they will use it as leverage.


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  • #2
    If there is no PILON clause in your contract then the company by terminating your employment in this way is in breach of contract.

    If this approach is taken, it is important that your payment includes other benefits that would have been accrued during the notice period, such as pension rights and holiday pay, otherwise you have a potential claim for wrongful dismissal.


    I do not provide advice by PM although I may on occasion ask you to send me documents this way but any related advice will be provided back on your thread.

    I do my best to provide good practical advice, however I do so without liability.
    If you have any doubts then do please seek professional legal advice.


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