Will Payment In Lieu Of Notice include pension contributions?

David in The Financial Times – Will payment in lieu of notice include employer pension contributions?

Covid-19 has resulted in a massive number of redundancies despite the extension of the furlough scheme to March 2021.

Where an employee is made redundant the employer can choose whether to pay basic entitlements such as notice, holiday and statutory redundancy (if over 2 years employment) or whether to make an enhanced package offer – perhaps subject to the employee signing a settlement agreement.

A question often asked by employees facing redundancy and, where the employer plans to pay the employee in lieu of them working their notice, is whether they are entitled to the (often valuable) pension payments which the employer would have paid into their pension had they worked their notice.

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Read my comments in today’s FT here about how pensions contributions work in the connect of redundancy and PILON.

Posted on Wednesday 30th December 2020

This article/blog is for reference purposes only. It does not constitute legal advice and should not be relied upon as such. Specific legal advice about your specific circumstances should always be sought separately before taking or deciding not to take any action.


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