In line with Government guidelines for safe working during the COVID pandemic, access to our office is strictly by a pre-arranged appointment only, and only where absolutely necessary. We are open for business with some staff working in the office and others from home, they can still be contacted in the usual way either by telephone or email.
In respect of your pre-arranged appointment, if you develop symptoms of COVID, or have in the last 14 days come into contact with someone with COVID or symptoms of, we ask that you contact the office by telephone/email to arrange a new appointment or discuss if there is an appropriate alternative to your meeting.
The safety of our staff and clients is of paramount importance to us and so thank you for your continued co-operation during these unprecedented times.
Since the outbreak of the coronavirus pandemic our employment department has been very busy and we have seen a significant increase in the amount of settlement agreements being offered to employees or indeed employers considering whether they wish to offer the same.
There are several questions that come up often, one of which is payment during the notice period.
Payment in Lieu of Notice
Any settlement agreement should provide that an employee is entitled to their normal pay and benefits up to and including the termination date. Quite often an employer will offer an employee a payment in lieu of notice, commonly abbreviated to PILON which means that their employment will terminate with immediate effect from the termination date and the contractual notice pay will be paid in a lump sum, with the employee not being required to work any notice period.
Any payment in relation to a payment in lieu of notice is subject to normal PAYE deductions.
These most often relate to a payment that is made in consideration for an employee entering into a settlement agreement and does not relate to any contractual entitlement, such as accrued but untaken holiday or notice pay. Any “ex gratia” payment is normally not subject to the usual PAYE deductions up to the sum of £30,000.
It is very important within a settlement agreement that payments are split between ones that relate to post-employment payment (notice pay) and those which are not as they attract different tax rules.
If you require any employment assistance, Kerry Hudson will be pleased to assist you. You can contact Kerry at email@example.com or on 024 7653 1532