PILON Payment

I have just been made redundant and will receive 3 weeks pilon. However, my employer has told me that it is illegal to pay my pilon along with my final salary payment. Due to how I am paid, I have only received 16 days salary this month, with a wait of approx. 10 workings days to receive my pilon along with my redundancy. This won't be until 3rd Jan. Is this right, that it is illegal...you cannot be paid pilon with your last salary?

No not at all. But you will tax on it. I presume you would rather not?

So, if I push for the payment just now, I will be taxed on it? But, if i leave it to come with my redundancy, I wont? I will get my redundancy & pilon both paid tax free?

Your payments up to £30K will be tax free income provided that the PILON is not contractual. You can push for payment any time you like - I just don't see much prospect of the employer changing their payroll run dates for you. But PILON cannot be paid as salary - otherwise it attracts tax and NI

Many thanks for your help with this. You've been more helpful than my ex employer!

You're welcome. Good luck with the job search.