Your browser does not allow automatic adding of bookmarks. Please press Ctrl/Command + D to add a bookmark manually.
Make a payment in lieu of notice
Key points
An employer should make a payment in lieu of notice ("PILON") when it wishes to terminate the contract of an employee without giving the notice due under the contract (unless the dismissal is in response to gross misconduct).
Making a payment in lieu of notice is particularly common in redundancy cases where there has already been consultation prior to the dismissal.
Employers should be aware of the potential effect of paying in lieu of notice on the enforceability of restrictive covenants.
The materials and information included in the XpertHR service are provided for reference purposes only. They are not intended either as a substitute for professional advice or judgment or to provide legal or other advice with respect to particular circumstances. Use of the service is subject to our terms and conditions.
Reed Business Information Limited trading as XpertHR is an Appointed Representative of Abbey Protection Group Limited which is authorised and regulated by the Financial Conduct Authority.
