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PILON and Redundancy

  • Fellow
  • 2 posts
  • # 118822

Sorry if this question has been asked before, I have been tasked with calculating the redundancy payments for a group of unfortuante employees at the company I work for.

I have no problem calculating their payment in lieu (PILON) and all the other parts that go into making up their final payment but my HR department has confused me a little.

I was under the impression that if we paid an employee PILON for their notice period, it was their actual leaving date that I used to calculate their length of service for redundancy purposes. HR are saying I need to add the notice period to the actual end date to give me the correct length of service.

I understand what they are saying, if an employee is entitled to a 12 weeks notice period from the employer and then during this period they complete another full year of service this will mean they are due an extra year in their redundancy payment.

This used to be the case before 2018, but I thought this was no longer the case and if the employee was paid payment in lieu, then everything ceased on leaving.

Any guidance will be greatfully received.

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