Skip to main content

This is a new service – your feedback will help us to improve it.

Posted Thu, 02 Mar 2023 11:02:47 GMT by Jane Knox
we have a voluntary severance programme in which employees can volunteer to leave and be paid PILON and redundancy Can you please clarify for me: Is the PILON based on employer notice period /or employee notice period If employer notice period is this the statutory payment where contract may say more than this? eg if contract states 6 months employer notice, is the PILON based on the statutory 12 weeks ot the contractual 6 months?
Posted Tue, 07 Mar 2023 13:41:01 GMT by HMRC Admin 10
PILON is based on the contracutal notice period.  
As PILON is being paid, you also need to do the Post Employment Notice Period (PENP) calculation.  
Guidance on this can be found at -
Post-employment notice pay (PENP) formula

You must be signed in to post in this forum.