PILON - When does contract actually terminate?

Hi There

My partner, along with two of his colleagues, have today sadly been confirmed as redundant. None of it has been done properly and we'll decide over the coming days whether we wish to puruse this further or take the path of least resistance!

However, my partner was today given (prepared prior to the meeting) a statement calculating what he'll be due in terms of final payment. They've counted today as his last day of service, plus PILON, but have calculated his annual leave up today, rather than to one month hence. I'd have thought that his leave entitlement should have been calculated to the end of the notice period? Not sure whether PILON means he officially terminates today, or still in a month's time? In which case maybe he ought to challenge it and offer to work his notice rather than lose a couple of days holiday pay in these hard times!

Grateful if any of the experts are kindly able to confirm the position.

Many thanks.

Sharon

Hi Shazza

If his contract allows for the employer to PILON, then he is likely only entitled to the pay. If there is no contractual provision then the employer is actually breaching the contract and, by using PILON, compensating him for the breach. In those circumstances he should be compensated in full for not being allwoed to work notice - so that could include holiday and pension contributions (although the employer may be able to argue that they could have forced him to take holiday during the notice period - particularly if the contract allows for that!)

Regards

Pete

Peter

Thank you very much for your reply. His contract does allow for PILON, so it seems he may not be able to claim the extra month's holiday entitlement. They've handled the situation outside of statutory procedure and best practice, and have significantly under-calculated his final payment. So I don't think we'll worry too much about 2 days' A/L as there are bigger fish to fry!

Thanks very much.

Sharon