Can I receive my payment in lieu of notice tax-free in a settlement agreement?
A settlement agreement will often bring an employee’s employment to an end without the need to work the notice period. Instead, the employee receives a payment based on what they would have earned during their notice period. This is known as a payment in lieu of notice or a PILON for short. Many people presume that if the PILON is paid under a settlement agreement it can be paid free of tax. However, this is not necessarily the case.
Is the PILON contractual or not?

If however [Read more…] about Questions Regarding U.K. Employment Law and PILON

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