Letter—employer notification of exercise of right to make payment in lieu of notice (PILON)
Published by a LexisNexis Employment expert
PrecedentsLetter—employer notification of exercise of right to make payment in lieu of notice (PILON)
Published by a LexisNexis Employment expert
Precedents
[Enter name and address of employee]
[Enter date]
Dear [enter name]
Termination of employment by Payment In Lieu Of Notice
[Further to our conversation earlier today, I OR I] write to notify you that [enter name of Employer] has decided to exercise its right (under clause [enter clause number] of your [service agreement OR Contract of employment] dated [enter date] (referred to in this letter as the [‘Service Agreement’ OR ‘Contract’]) to terminate your employment with immediate effect by giving you this written notification and making a payment in lieu of notice (referred to in this letter as the ‘Payment’).[ This letter also refers to various other terms as defined in the [Service Agreement OR Contract].]
The Payment is paid in lieu of your entitlement to notice under the [Service
Access this content for free with a 7 day trial of LexisNexis and benefit from:
- Instant clarification on points of law
- Smart search
- Workflow tools
- 42 practice areas
Get your quote today and take step closer to being able to benefit from:
- Instant clarification on points of law
- Smart search
- Workflow tools
- 36 practice areas
Get a LexisNexis quote
* denotes a required field
To view the latest version of this document and thousands of others like it,
sign-in with LexisNexis or register for a free trial.
Powered by Lexis+®
Jurisdiction(s):
United Kingdom
Key definition:
Payment In Lieu Of Notice definition
What does Payment In Lieu Of Notice mean?
Payment In Lieu Of notice (‘PILON’) clauses give the employer the express right to make a payment instead of giving notice, allowing the employee’s immediate termination and removal from the workplace. In the absence of a contractual PILON, employees may remain in employment for the notice period and be paid for it, and attempted summary dismissal will be ineffective unless the employee accepts that repudiation.
CONTACT US
