{"id":176874,"date":"2026-01-12T13:32:48","date_gmt":"2026-01-12T11:32:48","guid":{"rendered":"https:\/\/factorialhr.com\/blog\/?p=176874"},"modified":"2026-01-12T13:33:07","modified_gmt":"2026-01-12T11:33:07","slug":"pay-in-lieu-of-notice","status":"publish","type":"post","link":"https:\/\/factorialhr.co.uk\/blog\/pay-in-lieu-of-notice\/","title":{"rendered":"Pay in Lieu of Notice (PILON) Guide for UK&#038;I Employers"},"content":{"rendered":"<h4><span style=\"font-weight: 400;\">You may have heard references to PILON or \u2018pay in lieu of notice\u2019, but wonder what it actually means, when to use it and what the legal implications are. On this page, we will answer all these questions and provide practical examples and best-practice tips. That way, UK&amp;I employers know exactly how this process works in case they want to implement it.\u00a0<\/span><\/h4>\n<h2><b>What Is Pay In Lieu Of Notice (PILON)?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">PILON is a payment made by an employer to an employee when the employer decides to end the employment immediately, rather than have the employee work their notice period. Instead of remaining employed, the employer terminates the employee\u2019s contract of employment immediately. They pay the employee the amount they would have earned if they had stayed on and served out their notice period.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Employers used PILON when:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">There is a business risk to an employee remaining in the company after they have handed in their notice. Risks can include confidentiality concerns, workplace disruption, or customer loss.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The employer wants the employee to make a clean, quick exit for reasons other than personnel conflicts.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">There are legal reasons why employers must handle PILON very carefully. Ideally, a clause on PILON will be included in the contract, allowing the employer to terminate it immediately and pay in lieu of notice.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">PILON is different to other termination-of-contract payments, such as:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Payment for Unused Holiday:<\/b><span style=\"font-weight: 400;\"> this compensates the employee for any holiday entitlement that they have accrued but not yet taken. Unused holiday must be compensated at the termination of a contract, regardless of whether PILON is involved.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Redundancy pay:<\/b><span style=\"font-weight: 400;\"> an employee who is being made redundant may receive a payment related to the loss of their job. Employers may pay redundancy pay at the same time as PILON, but this does not affect the notice period.<\/span><\/li>\n<\/ul>\n<div class=\"factorial-banner inline-banner banner-freebie category-leadership-insights\"\n    data-banner-id=\"170487\"\n    data-banner-type=\"freebie\"\n    data-category=\"Leadership insights\">\n    <div class=\"banner-content\">\n        <div class=\"banner-text\">\n                            <h4>Download your free offboarding checklist now<\/h4>\n            \n                            <ul class=\"banner-checklist\">\n                                                                        <li class=\"not-prose\">Key steps for smooth, compliant exits<\/li>\n                                                                                                <li class=\"not-prose\">Knowledge transfer &amp; company asset return<\/li>\n                                                                                                <li class=\"not-prose\">Exit interview for a final fareware<\/li>\n                                                            <\/ul>\n            \n                            <a href=\"https:\/\/factorialhr.co.uk\/templates\/employee-offboarding-checklist\"\n                    class=\"factorial-cta-button not-prose freebie\" data-cta=\"freebie\" data-cta-position=\"inline-banner\">\n                    Download for free                <\/a>\n                    <\/div>\n\n        <div class=\"banner-image has-image\">\n            <img decoding=\"async\" src=\"https:\/\/factorialhr.com\/wp-content\/uploads\/2025\/10\/14100624\/template-static-banner.png\" class=\"not-prose\" \/>\n        <\/div>\n    <\/div>\n<\/div>\n<h2><b>Legal Requirements of PILON<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">PILON is not a statutory right. Legally, employers can make a PILON payment if the contract of employment includes a PILON clause or if there is a mutual agreement or settlement with the employee to pay PILON. Employers must meet minimum statutory notice obligations under the <\/span><a href=\"https:\/\/www.legislation.gov.uk\/ukpga\/1996\/18\/contents\"><span style=\"font-weight: 400;\">Employment Rights Act 1996<\/span><\/a><span style=\"font-weight: 400;\">, which ensure that an employee is paid correctly for the period they are working out notice.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If there is no clause in the contract and no agreement with the employee, terminating employment and making a payment is technically a breach of contract.<\/span><\/p>\n<h3><b>Statutory vs. Contractual PILON<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">PILON is not a statutory right, but continuing to earn money during the <\/span><a href=\"https:\/\/factorialhr.co.uk\/blog\/notice-periods\/\"><span style=\"font-weight: 400;\">notice period <\/span><\/a><span style=\"font-weight: 400;\">that you are working is legally protected, depending on how long you have been working. The law ensures that employers will pay employees correctly for the period they work after the termination of their contract of employment.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Contractual PILON is a clause in the contract of employment that allows the employer to terminate employment immediately and make a payment, rather than allowing the employee to serve their notice. The clause should define the different elements of pay included in a PILON payment. A well-drafted PILON clause protects confidentiality and ensures restrictions are in place to protect a company after an employee leaves.<\/span><\/p>\n<h3><b>PILON &amp; Garden Leave: What&#8217;s The Difference?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Whereas a PILON payment ends employment immediately, an employee on <\/span><a href=\"https:\/\/factorialhr.co.uk\/blog\/garden-leave-uk\/\"><span style=\"font-weight: 400;\">garden leave <\/span><\/a><span style=\"font-weight: 400;\">remains employed by the company until the end of their notice period. An employee on garden leave will usually still receive benefits and accrue holiday, depending on the contract.<\/span><\/p>\n<h3><b>PILON at a Glance<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">If you are in a rush,\u00a0<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td><b>What is PILON?<\/b><\/td>\n<td><span style=\"font-weight: 400;\">A salary payment is made immediately upon termination of a contract, rather than expecting an employee to serve their notice.<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>When is PILON used?<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Companies make PILON payments when they do not want their employees to remain employed after contract termination. There is usually a significant business risk involved in the employee continuing to be employed.<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>What is the legal requirement for PILON?<\/b><\/td>\n<td><span style=\"font-weight: 400;\">A PILON payment must accurately reflect the salary that would have been paid to the employee if they had remained employed. To avoid a breach of contract claim, the contract of employment should cover PILON payments, or there should be a mutual agreement in place.<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>Is PILON a statutory right?<\/b><\/td>\n<td><span style=\"font-weight: 400;\">There is no statutory right to PILON. However, legally, employers must honour statutory notice periods.<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>What is the contractual definition of PILON?<\/b><\/td>\n<td><span style=\"font-weight: 400;\">The contractual definition of PILON is the clause in the contract that defines when and how a company will terminate employment immediately and pay out the notice period.<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>What are the tax rules for PILON?<\/b><\/td>\n<td><span style=\"font-weight: 400;\">PILON payments constitute normal earnings and are taxed accordingly (PAYE and national insurance).<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>Do PILON payments include holiday and benefits?<\/b><\/td>\n<td><span style=\"font-weight: 400;\">The specifics included in a PILON payment will depend on the details outlined in the contract clause.<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>How does PILON link to restrictive covenants?<\/b><\/td>\n<td><span style=\"font-weight: 400;\">PILON payments can support the enforcement of restrictive covenants if handled correctly.<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>What are the risks with PILON payments?<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Mishandling a PILON payment can lead to a risk of breach of contract, reputational damage and loss of enforceable restrictions.<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><b>When Should Employers Use PILON<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Employers should only ever use PILON when their contracts of employment contain a PILON clause or when they have reached a mutual agreement with the employee. Companies should consider using PILON in the following situations:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">There is a risk to confidential information, commercial relationships or business continuity.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">There is a need to reduce the disruption or emotional strain associated with the termination of the contract of employment.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The organisation is undergoing significant change and requires a rapid transition of personnel.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The company or the employee must terminate the working relationship with immediate effect for any other reason.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">As outlined earlier, there is no legal requirement for employers to use PILON. If they choose to do so, it must be paid correctly and taxed appropriately, and both parties must mutually agree to it.<\/span><\/p>\n<div class=\"factorial-banner inline-banner banner-freebie category-leadership-insights\"\n    data-banner-id=\"170487\"\n    data-banner-type=\"freebie\"\n    data-category=\"Leadership insights\">\n    <div class=\"banner-content\">\n        <div class=\"banner-text\">\n                            <h4>Download your free offboarding checklist now<\/h4>\n            \n                            <ul class=\"banner-checklist\">\n                                                                        <li class=\"not-prose\">Key steps for smooth, compliant exits<\/li>\n                                                                                                <li class=\"not-prose\">Knowledge transfer &amp; company asset return<\/li>\n                                                                                                <li class=\"not-prose\">Exit interview for a final fareware<\/li>\n                                                            <\/ul>\n            \n                            <a href=\"https:\/\/factorialhr.co.uk\/templates\/employee-offboarding-checklist\"\n                    class=\"factorial-cta-button not-prose freebie\" data-cta=\"freebie\" data-cta-position=\"inline-banner\">\n                    Download for free                <\/a>\n                    <\/div>\n\n        <div class=\"banner-image has-image\">\n            <img decoding=\"async\" src=\"https:\/\/factorialhr.com\/wp-content\/uploads\/2025\/10\/14100624\/template-static-banner.png\" class=\"not-prose\" \/>\n        <\/div>\n    <\/div>\n<\/div>\n<h2><b>How to Calculate PILON<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">When calculating the amount required for a PILON payment, the key is that the employee must end up in the same financial position as they would if they had worked their notice period. As a result, the PILON payment must include any benefits or allowances as part of the salary.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It is also essential to comply with the requirements set out in the PILON clause in the contract of employment. Where there is an explicit PILON clause, employers usually pay the salary plus any contractual elements. Where there is an explicit clause, employees may be entitled to the full value of what they would have earned, including discretionary payments, because ending the contract early is technically a breach of contract.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Follow these steps to calculate a PILON payment accurately:<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Identify the correct length of notice:<\/b><span style=\"font-weight: 400;\"> the notice period will be outlined in the contract or based on the statutory requirement of 1 week for 1 month to 2 years service, or 1 week for each year of service up to 12 weeks.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Calculate what the employee would have earned:<\/b><span style=\"font-weight: 400;\"> this includes base salary, regular allowances and benefits that can be quantified (e.g., health insurance), and any guaranteed bonuses or commission payments for that period. Usually, this calculation does not include any overtime payments (unless guaranteed), non-contractual commission payments or discretionary bonuses.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Add any contractual extras:<\/b><span style=\"font-weight: 400;\"> for example, if your employee has accrued holiday but not taken it, or there is an agreement to provide cash instead of specific benefits.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Calculate the tax and national insurance: <\/b><span style=\"font-weight: 400;\">for tax purposes, PILON is considered normal pay, so you need to calculate tax and national insurance as usual.<\/span><\/li>\n<\/ol>\n<h3><b>PILON Calculation Example<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Here\u2019s an example of how to calculate PILON.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">An employee has a monthly salary of \u00a33,000, a car allowance of \u00a3300 per month, private healthcare provision in cash equivalent of \u00a350 per month and no guaranteed commission or bonus due. Their notice period is 3 months, and accrued holiday is not included in the PILON payment.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Salary: \u00a33,000 x 3 = \u00a39,000<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Car allowance: \u00a3300 x 3 = \u00a3900<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Cash value of benefits: \u00a350 x 3 = \u00a3150<\/span><\/p>\n<p><b>Total PILON before tax = \u00a310,500<\/b><\/p>\n<h2><b>PILON Best Practices for Employers<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">When it comes to PILON payment planning, paying attention to detail is the foundation for best practice. Here are X tips if you are working with PILON payments:<\/span><b><\/b><\/p>\n<ul>\n<li aria-level=\"1\">\n<h4><b>Check the Contract<\/b><\/h4>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Checking the contract should be the first thing you do, so you can be sure whether or not you can terminate a contract immediately without risking a breach of contract. Ensuring that all contracts, especially senior-level ones, have a clearly drafted PILON clause is essential.\u00a0<\/span><b><\/b><\/p>\n<ul>\n<li aria-level=\"1\">\n<h4><b>Calculate the PILON Payment Accurately<\/b><\/h4>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Use a checklist to ensure that you are consistent and include the correct elements in your calculation. Ask someone else to check your calculation. Remember that HMRC treat PILON payments as normal earnings, not compensation.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Managing holiday pay properly ensures that employees are accurately compensated for any holidays they have accrued but not taken. Often, it\u2019s easiest to keep the payment for accrued holiday pay separate from the PILON payment. If so, provide a clear breakdown of the total payment so the employee understands the different elements.\u00a0<\/span><b><\/b><\/p>\n<ul>\n<li aria-level=\"1\">\n<h4><b>Communicate Clearly<\/b><\/h4>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Take time to explain to the employee, respectfully and carefully, that the company is invoking the PILON clause in their contract, how the payment is calculated and taxed, and when they will receive it. Doing so avoids any misunderstanding which may lead to reputational damage. Immediately after the meeting, provide written confirmation of the termination date, amount payable and when, and the impact on benefits.\u00a0<\/span><b><\/b><\/p>\n<ul>\n<li aria-level=\"1\">\n<h4><b>Be Strategic<\/b><\/h4>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Avoid treating PILON as a shortcut for when you need someone out of the business quickly. PILON should be part of an overall strategy for managing the termination of employment within the organisation. On one level, a well-drafted PILON clause will prevent the outgoing employee from accessing sensitive systems and enforce any post-termination restrictions, such as a non-compete clause. On the other hand, it can ensure that PILON is used consistently across similar roles and circumstances to avoid any unfair dismissal claims.\u00a0<\/span><b><\/b><\/p>\n<ul>\n<li aria-level=\"1\">\n<h4><b>Keep Everything On Track<\/b><\/h4>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Avoiding delays such as late payment is essential to minimise reputational damage and legal claims. Other common pitfalls are forgetting benefits or holiday pay and failing to explain the tax implications. Using a checklist can ensure you don\u2019t miss any essential details or deadlines.\u00a0<\/span><\/p>\n<h2><b>Alternatives to PILON<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">There are several alternative approaches to PILON. Which one is best for your business depends on the employee\u2019s role, the nature of the departure, legal and contractual constraints, how the company wants to manage the employee&#8217;s exit, and any potential business disruption.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Alternatives to PILON include:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Working the notice period:<\/b><span style=\"font-weight: 400;\"> allows knowledge transfer, maintains goodwill and relationships, and avoids any additional payroll costs linked to PILON.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Garden leave:<\/b><span style=\"font-weight: 400;\"> when an employee remains employed but does not attend work, it provides an operational break while maintaining contractual obligations and restrictive covenants.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Mutually agreed early termination:<\/b><span style=\"font-weight: 400;\"> can reduce the tension and administrative burden of a formal process like PILON or garden leave; must be confirmed in writing and be contractually compliant.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Phased or reduced notice period:<\/b><span style=\"font-weight: 400;\"> for example, remote working or handover of key duties earlier allows knowledge transfer and maintains goodwill between employer and employee; ag, this must be confirmed in writing and be contractually compliant.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Settlement agreement<\/b><span style=\"font-weight: 400;\">: these can provide certainty for both parties when the circumstances are complex or sensitive, but can be costly in terms of legal advice.<\/span><\/li>\n<\/ul>\n<h2><b>Offboarding with Factorial<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">A business management system like <strong>Factorial<\/strong> supports the offboarding process, specifically the implementation of PILON, in several ways. Having a centralised system that stores employee records, contracts, and communications in one place makes it easy for managers to check whether a contract includes a PILON clause and to work out all the details related to the payment, including holiday pay and benefits. The system also stores policies and provides a checklist to help avoid forgetting anything.<\/span><\/p>\n<div class=\"factorial-banner inline-banner banner-demo category-leadership-insights\"\n    data-banner-id=\"167129\"\n    data-banner-type=\"demo\"\n    data-category=\"Leadership insights\">\n    <div class=\"banner-content\">\n        <div class=\"banner-text\">\n                            <h4>Want see more of Factorial?<\/h4>\n            \n                            <ul class=\"banner-checklist\">\n                                                                        <li class=\"not-prose\">Automate your workflows<\/li>\n                                                                                                <li class=\"not-prose\">Save time &amp; effort<\/li>\n                                                                                                <li class=\"not-prose\">Centralise HR &amp; finance with one platform<\/li>\n                                                            <\/ul>\n            \n                            <a href=\"https:\/\/factorialhr.co.uk\/request-demo\"\n                    class=\"factorial-cta-button not-prose demo btn-brand\" data-cta=\"demo\" data-cta-position=\"inline-banner\">\n                    Get a demo                <\/a>\n                    <\/div>\n\n        <div class=\"banner-image has-image\">\n            <img decoding=\"async\" src=\"https:\/\/factorialhr.com\/wp-content\/uploads\/2025\/09\/01114707\/Discover-banner-factorial-laptop.png\" class=\"not-prose\" \/>\n        <\/div>\n    <\/div>\n<\/div>\n<h2><b>Pay in Lieu of Notice (PILON) FAQs<\/b><\/h2>\n<ol>\n<li><b> Should Employers Have A PILON Clause In Employment Contracts?<\/b><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">Yes, employers should have a clearly drafted PILON clause in their employment contract, as this allows them to feel confident using PILON when needed without risking a breach of contract.<\/span><\/p>\n<ol start=\"2\">\n<li><b> What If Employers Don&#8217;t Have A Clause?<\/b><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">If employers don\u2019t have a PILON clause in their contract, it is still possible to use PILON through a mutual agreement with the employee.<\/span><\/p>\n<ol start=\"3\">\n<li><b> How Is PILON Generally Calculated?<\/b><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">Companies generally calculate PILON by using the salary that the employee would have expected to earn during the notice period.<\/span><\/p>\n<ol start=\"4\">\n<li><b> What Is An Effective Date Of Termination (EDT) And Why Is This Important?<\/b><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">An effective date of termination (EDT) is the formal legal date when employment ends. It is essential because it is used in UK employment law to determine rights such as redundancy, notice entitlement, unfair dismissal eligibility, and statutory timelines for making claims.<\/span><\/p>\n<ol start=\"5\">\n<li><b> Is PILON subject to tax?<\/b><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">Yes, since 2018, PILON payments have been subject to UK tax and national insurance contributions.<\/span><\/p>\n<ol start=\"6\">\n<li><b> What are the risks of not paying PILON correctly?<\/b><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">If companies do not pay PILON correctly, they risk both a claim for breach of contract and reputational damage.<\/span><\/p>\n<ol start=\"7\">\n<li><b> Can PILON be applied during garden leave?<\/b><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">Yes, if an employer has a PILON clause in their contract, they place an outgoing employee on garden leave, and then decide to terminate the contract earlier and instigate PILON instead. If there is no PILON clause in the contract and an employee has agreed to go on garden leave, the employer needs to be careful to apply PILON, as this could be considered a breach of contract.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>You may have heard references to PILON or \u2018pay in lieu of notice\u2019, but wonder what it actually means, when to use it and what the legal implications are. On this page, we will answer all these questions and provide practical examples and best-practice tips. That way, UK&amp;I employers know exactly how this process works<a href=\"https:\/\/factorialhr.co.uk\/blog\/pay-in-lieu-of-notice\/\" class=\"read-more\"> [&#8230;]<\/a><\/p>\n","protected":false},"author":193,"featured_media":176898,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[991],"tags":[],"class_list":["post-176874","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-leadership-insights-en-gb"],"acf":{"topics":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.5 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Pay in Lieu of Notice (PILON) Guide for UK&amp;I Employers | Factorial<\/title>\n<meta name=\"description\" content=\"Learn what PILON is, when you can use it and the legal requirements involved in the payment, as well as get best practice tips and examples.\" 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