Government PILON

[xtruss]

Hello,

A quick question for those who maybe able to help.

My girlfriend had been working for a company that was in administration and during covid she was made redundant after 24yrs of employment on the 28th May.

The government is covering her 12 weeks PILON, but anything she receives in benefits or other earnings is deducted from the final payment.

She started a new job this week and so the question is will her income for August be taken of the whole PILON amount due, or is it done on a month by month basis. i.e so in June and July she will receive her normal salary then August she will receive her salary minus what she earns this month ( she will be earning more now per month in this new job than she did in her previous).

Thanks.

[Jasandjules]

What does her contract say? Quite often in PILON there is a clawback clause in the event you obtain alternative employment during the relevant period.

[xtruss]

As the company she was working for went into adminstration pilon is being paid by the government and this I believe state's any money she receives during pilon is deducted from her final amount once the 12 weeks has past. So she had 2 months job seakers allowance for June and July, now August she starts a new job. But is pilon calculated on a month by month basis or as a lump sum for the total 12 weeks..
It's not an issue as she is just glad to be back in employment again, but it's something I said I would ask on this forum she's sees reading it a lot.

Edited by xtruss on Tuesday 11th August 21:07

[Jasandjules]

Indeed however I believe (and forgive me if I am wrong, I've only looked into the liability of the NI scheme to pay out before not the minutia of the actual payments) that the NI scheme in effect steps into the shoes of the insolvent firm and as such I would have expected, in the absence of some other document from them setting out the basis of payments, that they would follow the contractual obligations.

Has she anything from the NI scheme setting out the payments - given that you already suspect the deduction will be made, is there a clause requiring you to furnish them with information from her new employer or do you think they will simply obtain it from HMRC using the NI number in payroll?