Hi all, first post in this forum! MY DH is planning to hand in his notice. Due to going to a direct competitor, we fully expect him to be put on Gardening leave, which is fine as he'll be paid fully for this. What we're not sure about is if they request to terminate his contract early (i.e. termination of notice) is he entitled to PILON or does this only apply in a redundancy situation? Thanks
If you have a right to a certain amount of notice and your company wants your resignation to be immediately effective and this decision it is not by agreement then you would have a right to PILON as otherwise company opens themselves up to claims of wrongful dismissal. However, if the choice is between gardening leave or early termination without payment then it is up to your dh to decide which he'd prefer.
If they request to end his employment early he can either say yes if he wants to leave early, or say no and be prepared to work his full notice. If they tell him they are terminating it early, and there's no other option, then yes he must get PILON.
PILON would only be tax free if there is no provision to PILON in the contract. Otherwise it's just as taxable as garden leave. And unless he is paid £30,000 a month the tax free limit is unlikely to be relevant. All they'd have to do is compensate him for the loss incurred as a result of not being able to work his notice period.