Discussion
A friend is being made redundant, her employer is a division of a large multi national.
The employer has agreed that they will give the employee payment in lieu of notice, however, they are wanting to say that if the employee were to subsequently join another division of the multi national then the employee has to repay the PILON.
Is there anything stopping them from doing this, employment law wise?
The employer has agreed that they will give the employee payment in lieu of notice, however, they are wanting to say that if the employee were to subsequently join another division of the multi national then the employee has to repay the PILON.
Is there anything stopping them from doing this, employment law wise?
As I understand it where PILON is paid the persons actual employment end date changes/moves to the left and you become free/unemployed at that time, the relationship with the company is terminated.
This is different to 'gardening leave' where you are still employed by the company until your end date but you are not in the office unless called in but you wouldn't get PILON under these circumstances.
If the employee transfers internally before their end date there is no redundancy.
If you came back as a contractor or started a new permanent position a couple days after your end date I personally would consider the PILON payment can be kept as there is no continuation of employment. I suspect they are considering that situation to be continuous employment..
I'm sure others more knowledgeable will chip in.
This is different to 'gardening leave' where you are still employed by the company until your end date but you are not in the office unless called in but you wouldn't get PILON under these circumstances.
If the employee transfers internally before their end date there is no redundancy.
If you came back as a contractor or started a new permanent position a couple days after your end date I personally would consider the PILON payment can be kept as there is no continuation of employment. I suspect they are considering that situation to be continuous employment..
I'm sure others more knowledgeable will chip in.
Thanks guys, Jasand, when you say you usually remove it is that just a "yeah we'll strike that clause out thank you" as part of the negotiation or is there any precedent that you use to give it a bit of weight? (thinking along the lines of the employee saying "surely that term falls foul of the "unfair contract terms act")
Marcellus said:
Thanks guys, Jasand, when you say you usually remove it is that just a "yeah we'll strike that clause out thank you" as part of the negotiation or is there any precedent that you use to give it a bit of weight? (thinking along the lines of the employee saying "surely that term falls foul of the "unfair contract terms act")
Depends on how the negotiations are going and how strongly the parties feel about working together again in future.Last time I just said "Plainly neither party wants to preclude the option of working together again in future so we will of course agree to remove that term given the parties are parting ways on good terms"
Unfair etc does not really apply when you are negotiating a settlement agreement...It would only arise if a party breached and that would mean the employee has gone back to work for a Group company with that live term........Which could be unwise....
Is there any mileage in leaving it in but adding a clause about allowing any new employment to be defined as continuous service with the previous term? At least you would get something out of it. If they won't remove the clause it should have a time limit at least - six months if you can get it.
I presume there is intent on the part of the employee to seek employment within another area of the group ? If so then that can be raised, the employee enjoyed it etc so much s/he would still welcome the opportunity to do so again in future and with an amicable parting of ways..... etc etc
Jasandjules said:
I presume there is intent on the part of the employee to seek employment within another area of the group ? If so then that can be raised, the employee enjoyed it etc so much s/he would still welcome the opportunity to do so again in future and with an amicable parting of ways..... etc etc
In final stages of the interview process with another division within the UK that they were working on before they were put "at risk"!!Marcellus said:
In final stages of the interview process with another division within the UK that they were working on before they were put "at risk"!!
Then I would note that and invite them to agree to vary that clause to preclude the precise division in question......Edited by Jasandjules on Monday 17th June 21:52
Gassing Station | Jobs & Employment Matters | Top of Page | What's New | My Stuff