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KembaraXtra – Legal Terms – PILON
PILON stands for payment in lieu of notice.
It refers to a payment made by an employer when terminating an employee’s contract immediately without requiring the employee to work the notice period.
The payment is intended to compensate the employee for salary and benefits that would have been earned during notice.
A PILON clause is usually included in the employment contract to avoid claims for breach of contract.
The amount paid may include salary, bonuses, and other contractual benefits.
PILON stands for payment in lieu of notice.
It refers to a payment made by an employer when terminating an employee’s contract immediately without requiring the employee to work the notice period.
The payment is intended to compensate the employee for salary and benefits that would have been earned during notice.
A PILON clause is usually included in the employment contract to avoid claims for breach of contract.
The amount paid may include salary, bonuses, and other contractual benefits.
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