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Buachaill
Buachaill, Barrister
Category: Law
Satisfied Customers: 10782
Experience:  Barrister 17 years experience
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I have just been advised that my emp[loyment is being terminated

Customer Question

I have just been advised that my emp[loyment is being terminated with immediate effect.

I am being offered 3 months PILON, 3 months being my notice period up until 1st Sept 2013 when it would have risen to 6 months.

I was given notice that my last day of employement was 19th June 2013. My employer claims that they my contract gives them the right to terminate my employment immediately with the appropriate PILON payment. However, my contract only mentions Garden Leave or working my notice period.

If I elelcted to work my 3 months notice period to the 19th September would I be entitled to the extra 3 months redundancy payment?
Submitted: 4 years ago.
Category: Law
Expert:  Buachaill replied 4 years ago.

Buachaill :

1. At the outset, unless there is a Payment in lieu of Notice clause in an employment contract, it should not be paid. An employer who makes a PILON payment when there is no such clause in the employment contract is in breach of contract. Accordingly, at this stage, you should write back to your employer and make clear that it is unlawful to make A PILON payment where there is no such clause in the employment contract. Point out that the options available to him are either garden leave or to work the three month notice period. Alternatively, you can suggest a sum of compensation for yourself which would cure the breach of contract which a PILON payment would constitute.

Buachaill :

2. However, you need to realise that once you have given notice of termination of employment, then the contract comes to an end at the end of the notice period. Merely because an additional notice period would come into force if you gave your notice at a later date, after 1st September, does not affect your contractual rights. Essentially to qualify for the six month notice period you would have to be giving notice after 1st September because it is only then that your contractual right to six months notice would have crystallised. You do not qualify for an extra three months redundancy payment merely because it would be six months if you gave notice after 1st September. You must still be working for the employer without notice being given on 1st September for a six month notice period to apply.

Buachaill :

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JACUSTOMER-cba5vwgo- :

Dear Buachaill,

JACUSTOMER-cba5vwgo- :

Does your answer apply to the law in England and Wales as I see that you specialise in Republic of Ireland Law? I did specify England and Wales law when submitting my question. Can you advise what is likely to be considered an appropriate size of PILON compensation payment please.

Buachaill :

3. This is the law as applicable in the UK. Your Question is in the United Kingdom law category. I am dual qualified. PILON compensation payments are based on wages. Generally, the wages for the period in question. What i referred to was compensation for breach of contract. These payments would be small, probably 1-2 weeks pay where there is a breach of contract.

Buachaill :

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