PILON & accruing holidays

[Ellypoo]

If someone is being made redundant and is being paid PILON, do they still accrue holiday pay up to the end of the notice period or does it stop the day their employment is terminated?

[Balletgirlmum]

It drpends whether the contract allows for PILON. If it does then only basic salary is due & other benefits are not accrued as employment is terminated on immediately.

If the contract does not provide for it then technically speaking it's a breach of contract so employers would usually pay holiday pay accrued & any other benefits to avoid further damaged being due.

[Ellypoo]

Contract says 'the company reserves the right in its absolute discretion to pay you basic salary in lieu of notice' so I guess that's ok?

[Ellypoo]

Oh, I've also seen this though: in the event of termination of employment where the notice period is paid in lieu, then the holiday entitlement which would have accrued had notice been worked shall be at statutory minimum levels only.
So it should be accrued at 5.6 wks/year then.
thank you :)

[Balletgirlmum]

Yes if that's what the contract says.