Skip to content

Payment in Lieu of Notice (PILON)

2019 June 28
Our recommended partners at provide payroll advice for
parents and have created this content.
Payment in lieu of notice or (PILON) is when a nanny has been terminated from employment
and not required to work her notice.
In nanny’s contract you can stipulate that nanny’s employment can be terminated by PILON
immediately and payment in lieu of her basic salary will be paid for the notice period, then
you will not need to pay benefits and extra costs that accrue during her notice period.
If in the contract PILON does not specify the pay for this period or no mention to PILON in
the contract, then you as an employer will need to pay benefits and extra costs for this
Tax and national must be deducted from PILON.
In the case of gross misconduct, PILON is not normally paid to the nann

Leave a Reply

Note: You may use basic HTML in your comments. Your email address will not be published.

Subscribe to this comment feed via RSS