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Ben Jones
Ben Jones, UK Lawyer
Category: Employment Law
Satisfied Customers: 49868
Experience:  Qualified Employment Solicitor - Please start your question with 'For Ben Jones'
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My employer is making me redundant on 28th Feb, if alternative

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My employer is making me redundant on 28th Feb, if alternative role cannot be found within the organisation. In my contract there is a section that states 'the company may at its distressing dismiss you with pay in lieu notice.' they have stated that this PILON will be in my bank from 7th March. However they are now stating that they will also be picking up my company car from the 1st March as i will no longer be employed by the company.

Having spoken to ACAS they have advised me that due to my contract not determining in the PILON situation when exactly employment is terminated then they should offer compensation of such benefit. If not should think about starting legal action for breach of contract involving salary dedications.

I have contacted my employer following receiving this advice and they are staying that due to employment being terminated following the pilon they do not have to supply car.

Can you provide any light on the situation please? I'm being told I'm being made redundant on Fri 28th, and given no notice due to pilon can they take away my lifeline to get to interviews and seem further work in terms of my car also?

Ben Jones :

Hello, my name is XXXXX XXXXX it is my pleasure to assist you with your question today.

Ben Jones :

How long have you worked there for?


Worked there for under 1 year.


7months to be exact

Ben Jones :

OK, thank you, XXXXX XXXXX this with me - I will look into this for you, get my response ready and get back to you on here. No need to wait around and you will get an email when I have responded, thank you


Hi Ben i.could send you a picture of my contract that discuss the pilon if that would be okay because I know from speaking to acas it's all about the wording of the contract.

Ben Jones :

hi yes please go ahead, you can attach it using the paperclip icon on the toolbar


I am unable to attach it at the moment as it keeps failing using the paperclip


Possibly attached now.

Ben Jones :

I don't think it has worked I'm afraid. Maybe you can upload it t a third party sharing site, such as - it is free to register then you just give me the link where you have uploaded it


URL is thanks

Ben Jones :

ok got it, thanks


Brilliant. I also have a copy of the emails sent to my employer and responses if that would be of hekp



Ben Jones :

no need thank you



Ben Jones :

I think what ACAS were trying to tell you is that because the wording of the PILON clause does not specify what payments you would be entitled to in the event the employer terminates your employment by giving you PILON, you should be entitled to all normal contractual benefits that you would have continued to receive had you been allowed to work through your notice period. Whilst the contract does allow termination through PILON, it does not specify what payments must be made for this to operate successfully.


The relevant advice from ACAS can be found here:


You will see the specific wording that “employers are generally required to pay benefits and any extras when the contractual provision for PILON doesn't specify what the pay should be, or if there is no contractual clause for PILON.”


Whilst they would be able to take the car from you, they should instead continue paying you a reasonable allowance for taking that benefit away from you, which is a sum that would be added to the final payment and PILON.

Customer: They have denied having to provide any allowance Ben for the car, as my employment is according to my employer terminated from this Friday. The date I will formally be made redundant. The PiLON payment is then again not being made till the 7th march.
Customer: How do I progress this?
Ben Jones :

well initially you would need to write to them ,set out your position and then if you have no luck you can make a claim for breach of contract as previously advised

Customer: is there any employment law that a can quote when explaining my position.
Ben Jones :

PILON is not covered by legislation, so there will be no specific law, it is contractual law, which is common law, although unlawful deduction of wages is covered by the Employment Rights Act 1996

Customer: Thanks Ben. If there is no agreement how do I organise a claim for breach of contract?
Ben Jones :

You can make the claim for financial losses equivalent to the allowance you were denied through

Customer: Also should I inform my fellow colleagues about our rights involving this matter? We were employed at same time with exactly the same contract. Would numbers of complaints in this matter provide more power to my grevience or make it worse.
Ben Jones :

no harm in advising the others - often a group grievance may be taken more seriously than an individual one

Customer: Brilliant. Thank you for your help.
Ben Jones :

You are most welcome. Please take a second to leave a positive rating for the advice I have provided as that is an important part of our process. Thank you and feel free to bookmark my profile for future help:

Ben Jones and other Employment Law Specialists are ready to help you
Customer: replied 4 years ago.

Hi Ben just as follow up for you. I have now been offered use of the company car for an extra 2weeks following being made redundant.


I haven't yet agreed but think that I am going to agree to the compromise.

Thanks for your help in this matter.

Hi, thanks for getting back to me and glad to hear something positive has come out of it. All the best