Pay in lieu of notice (PILON)

In some situations an employer may wish to provide pay in lieu of notice or PILON when an employee leaves a company.

You can only look to provide PILON if you have a contractual clause to do so, otherwise employees are required to work their full entitlement to their notice period.

In some situations, for instance, redundancy, it may be more appropriate to provide PILON, but in others situations managers will need to consider factors such as access to confidential or commercially sensitive information or trade secrets before looking at PILON as an option.