What is PILON when it comes to ill health retirement

[flip]

Hi

I have been recentley offered Ill Health Retirement due to a injury caused in a car accident a year ago. They are paying me a lump sum but on the estimate it says Pilon if applicable so many £'s. What is PILON all about. Plus I have all my annual leave as I havent been there to take it but this isnt included in my estimate, does this get paid on top?

[Body Beyond Repair]

Paid in lieu of notice!

[flip]

meaning what? Is this deducted or added?

[fishtank]

Added...if you have worked for RM for 10years you will be entitled to 10 weeks notice or in your case the cash equivalent.

[TrueBlueTerrier]

When employees are dismissed it is not uncommon for the employer to pay them lump sums "in lieu of notice" rather than require them to work out their statutory or contractual notice periods . Two different types of payment are often lumped together under the generic name "pay in lieu of notice" or "PILON", namely (i) payments specifically provided for in the employee's contract of employment - as a general rule these are fully taxable, - and (ii) payments not provided for in the contract to compensate the employee for not allowing him to work out the notice period to which he is entitled - as a general rule the first £30,000 of these is free of tax.

In Royal Mail basically they are paying you the difference between the notice they give you (say 1 week) and the amount of notice they should give you (say 10 weeks).

The amount of notice they should give you depends on how long you have been at RM.

notice given.jpg

so they give you 1 weeks notice but you have done 12 years then PILON would be approx 11 weeks pay.

Not sure if they include untaken annual leave in PILON though

[flip]

Thanks TrueBlueTerrior that has made it a bit clearer.

What happens with holiday oweing as I havent been there this year to take any?

[Postal1]

Seem to hear quite a few people getting IHR. Does RM use this to get rid of people on long term sick etc?

[flip]

Seem to hear quite a few people getting IHR. Does RM use this to get rid of people on long term sick etc?

pretty much unless you can prove to them that you will be able to work in the very near future lol.
My manager was trying to steer me away from it saying that the offer wouldnt be that much and you would prob be better off handing your notice in and getting the owed holiday paid to you instead lmao but my union rep said you have nothing to lose so go for it.

[General Mannerheim]

Thanks TrueBlueTerrior that has made it a bit clearer.

What happens with holiday oweing as I havent been there this year to take any?

They add it on to the 34 weeks they pay you off with so for example you have 4 weeks owing...they give you 34 weeks plus 4 weeks=38 weeks which will be on your final wage slip.
Don't know but you might get the fake shares as well paid or did that s**t new agreement curtail that as well.

[General Mannerheim]

Seem to hear quite a few people getting IHR. Does RM use this to get rid of people on long term sick etc?

Yeah it's pretty much standard after about 5 months off they start getting heavy with you.

[flip]

Thanks TrueBlueTerrior that has made it a bit clearer.

What happens with holiday oweing as I havent been there this year to take any?

They add it on to the 34 weeks they pay you off with so for example you have 4 weeks owing...they give you 34 weeks plus 4 weeks=38 weeks which will be on your final wage slip.
Don't know but you might get the fake shares as well paid or did that s**t new agreement curtail that as well.

Like share in success - We were never told for about 8 months that it had been discontinued.

[Postal1]

Seem to hear quite a few people getting IHR. Does RM use this to get rid of people on long term sick etc?

pretty much unless you can prove to them that you will be able to work in the very near future lol.
My manager was trying to steer me away from it saying that the offer wouldnt be that much and you would prob be better off handing your notice in and getting the owed holiday paid to you instead lmao but my union rep said you have nothing to lose so go for it.

What a total **** your manager is. You get 34weeks plus notice period, plus shares if you had them.

[flip]

Anything to save a bit of money ehhhh.

[buzzard]

Like share in success - We were never told for about 8 months that it had been discontinued.

i received ihr in june this year after 18 years with royal mail got the maximum pilon and also got money for the shares. cant remember exactly how much but just over £1000

[flip]

Like share in success - We were never told for about 8 months that it had been discontinued.

i received ihr in june this year after 18 years with royal mail got the maximum pilon and also got money for the shares. cant remember exactly how much but just over £1000

They have sent me a confirmation letter saying that I need to sign the reply slip then they can release the payment and my contract will be terminated on the 2nd October. I not entirely sure when I will receive this lump sum. Will it be the following Friday?

Also there doesn't seem to be much paper work involved is this suppose to be the way?

Did they just pay the shares up or did you have to ask them?....

It all seems a very crude way of working and Im not entirely sure what percentage of the IHR is completed due to lack of any proper communication....