PILON

In recruiter context

Common when relationships have soured, the role is being eliminated, or the employer doesn't want you near systems/clients during your notice. PILON is fully taxable as ordinary income (unlike statutory redundancy, which is partially tax-free up to £30,000). You don't accrue further holiday during a PILON period and you don't earn pension contributions on it. Whether the employer can pay PILON depends on your contract — most modern UK contracts include a PILON clause, but if yours doesn't, the employer paying it without your agreement could be a breach of contract you might successfully claim against.