Gardening leave and PILON - how to calculate PENP?

An employee has a contractual notice period of 6 months but is initially placed on gardening leave for 2 months before being paid a PILON payment for termination of employment for the remainder of the notice period (unworked). In the PENP formula, do you calculate PENP in relation to the RTA with reference to the original contractual 6 month notice period or would you use 4 months - being the remaining notice period? (ie on the understanding that the 2 months garden leave is part of the original 6 month notice period).

Hi paul307130.

If the employee was paid as normal during the gardening leave then you would just use the 4 months.

Thank you.