Pilon & Car allowance

[Juniper84]

I have recently had my employment terminated and was paid three months PILON, as part of my contract I was receiving a monthly car allowance. However, the pilon did not include 3 months car allowance, only 1.

I challenged this directly and was told no.
I then went to Acas and started early conciliation.
The employer declined to negotiate or resolve.
I have now received the certificate from Acas.

My first question is, am I legally entitled to a further 2 months car allowance as this is listed on my employment contract as a monthly benefit?

My second question, if I raise a tribunal case and I loose, am I open to any costs they incur? For £1000, I would not want to risk being faced with legal fees.

Thanks in advance for you advice.

[ULA]

In order to answer your question please can you confirm:

1. Was your car a contractual benefit or not?
2. If there is a PILON clause in your contract of employment, which gives your employer discretion to terminate your employment immediately and pay you in lieu of notice, is there any further express term stating that there is no entitlement to be paid for benefits such as car allowance, pension, or private health insurance.

[Juniper84]

Hi,

thank you for your reply.
the car allowance was a contractual benefit and there is no pilon clause in my contract.

[ULA]

If you have been paid PILON and there is no PILON clause in your contract of employment allowing your employer to make such a payment on termination, then unless you agreed to them doing so, potentially they are in breach of contract.

If the car was a contractual benefit, then if you had worked your notice you would have continued to receive the benefit.

If you had been dismissed and paid in lieu under a PILON clause which did not deal with benefits and remains silent on the issue, the default position is that the employee should be compensated for the loss of any benefit under the contract for the duration of the notice that should have been given. As you did not have a PILON clause and if there is nothing else covering compensation for loss of benefits on leaving, then you are potentially owed the 3 months.