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单词 payment in lieu of notice
释义

payment in lieu of notice
(PILON) A payment made to an employee on the termination of their contract of employment without notice. The payment should reflect the total pecuniary losses that the employee will incur by not working out their notice, as any difference between the PILON and what would otherwise have been received could potentially give rise to a claim for breach of contract. The PILON may therefore include an element representing benefits in addition to the employee’s basic salary.

Not all payments made on termination without notice are properly described as PILON. Ordinarily, provision for the PILON should be contained within the employee’s contract of employment, as the payment may otherwise be viewed as an award of damages on breach of contract. The PILON clause ought to be clear on when the clause may be used, what it covers, and what the effective date of termination will be if it is invoked, so as to remove any cause for dispute in these regards. In Delaney v Staples [1992] ICR 483, Lord Browne-Wilkinson set out several grounds upon which PILON may be applied and the effect this would have.

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更新时间:2024/12/26 4:48:15