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?
Published on: 05/03/2019
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Article Authors The main content of this article was provided by the following authors.
Johanna Cunningham Senior Associate, Lewis Silkin (NI) LLP
Johanna Cunningham Senior Associate, Lewis Silkin (NI) LLP
Johanna cunningham

Since qualifying in 2018, Johanna has supported clients with disciplinary and grievance issues, defending employment tribunal claims, senior exits, redundancies, TUPE, and day-to-day HR queries. She also has a strong interest in the overlap between employment law and data protection, regularly advising on subject access requests, data breaches, employee monitoring, and matters involving cross-border workers.

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?

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

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Disclaimer 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. This article is correct at 05/03/2019