Does an employee who has received a payment in lieu of notice also have to receive payment for holidays that they would have accrued had they worked their notice period?

Posted in : First Tuesday Q&A NI on 5 March 2019
Arthur Cox
Arthur Cox
Issues covered:

Employers who do not need and/or wish employees to work their notice period can make a payment in lieu of notice (“PILON”). An employer will usually include a PILON clause in its employment contracts to ensure it has the option to terminate an employee’s employment at any time. However, in the absence of an express contractual right, an employer and employee may still reach agreement to end employment early by accepting a ‘non-contractual’ payment in lieu.

If a PILON is contractual, the clause in the contract should specify how the PILON is calculated and what benefits (if any) other than basic salary will be included.

If the contract is silent in this regard, it is arguable that the

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Back to Q&A's This article is correct at 05/03/2019

The information in this article is provided as part of Legal-Island's Employment Law Hub. We regret we are not able to respond to requests for specific legal or HR queries and recommend that professional advice is obtained before relying on information supplied anywhere within this article.

Arthur Cox
Arthur Cox

The main content of this article was provided by Arthur Cox. Contact telephone number is 028 9023 0007 or email

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