Payment in lieu of notice (PILON)

Resource type: Glossary item

Status: Maintained

Jurisdictions: England, Northern Ireland, Scotland, Wales

A contractual right to pay an employee a lump sum rather than require them to work out their statutory or contractual notice period. If there is no PILON clause in a contract of employment (www.practicallaw.com/5-200-3117) then an employer who pays an employee a lump sum payment instead of requiring them to work their notice period will be in breach of contract.

For more information, see Practice note, Notice of termination of employment: Payment in lieu of notice.

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Resource ID: 2-200-3406
Products: IP&IT, PLC Glossary, PLC UK Commercial, PLC UK Construction, PLC UK Corporate, PLC UK Dispute Resolution, PLC UK Employment, PLC UK Environment, PLC UK Law Department, PLC UK Pensions, PLC UK Property, PLC UK Public Sector, PLC UK Share Schemes & Incentives
This resource is maintained, meaning that we monitor developments on a regular basis and update it as soon as possible.

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Topics

Contracts of EmploymentContracts of Employment (http://uk.practicallaw.com/9-103-1223)
Employment Law Issues: IncentivesEmployment Law Issues: Incentives (http://uk.practicallaw.com/7-205-7171)
Termination of EmploymentTermination of Employment (http://uk.practicallaw.com/1-103-1222)

Practice notes

Calculating pensions loss on termination of employment Calculating pensions loss on termination of employment (http://crossborder.practicallaw.com/topic0-209-0956)
Directors' service agreements and regulatory issues Directors' service agreements and regulatory issues (http://crossborder.practicallaw.com/topic0-200-3271)
Notice of termination of employment Notice of termination of employment (http://crossborder.practicallaw.com/topic6-501-7813)
Pensions in the employment contract Pensions in the employment contract (http://crossborder.practicallaw.com/topic8-208-8983)
Taxation of termination payments Taxation of termination payments (http://crossborder.practicallaw.com/topic0-200-2422)

Standard document

Section 1 statement of terms of employment Section 1 statement of terms of employment (http://crossborder.practicallaw.com/topic2-200-2039)

Standard clause

Payment in lieu of notice clause Payment in lieu of notice clause (http://crossborder.practicallaw.com/topic3-200-2114)

Glossary

Contract of employment Contract of employment (http://crossborder.practicallaw.com/topic5-200-3117)
PILON PILON (http://crossborder.practicallaw.com/topic9-200-3417)

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