0 min read | 9 July, 2020 By Rachael Down
Whether it's on good or not-so-great terms, payment in lieu of notice (PILON) can help to manage a person's exit if they're dismissed there and then.
This is especially helpful to those people who:
PILON is where you compensate an employee's immediate dismissal by paying their notice period instead. Payment in lieu of notice therefore protects your worker's rights for the money they would have earned during their notice period.
It's different from gardening leave whereby an employee remains employed by you and is paid during their notice period. Under gardening leave, they're still in the contract, so even though you ask them not to work, they cannot take up new employment during that time.
PILON is necessary for instances where you require an immediate end to the employment and can cut ties to override the previous contract.
If you’re dismissing an employee for gross misconduct, then PILON is not normally paid.