{"id":15927,"date":"2023-05-22T18:04:12","date_gmt":"2023-05-22T08:04:12","guid":{"rendered":"https:\/\/employmenthero.com\/uk\/blog\/payment-in-lieu-of-notice\/"},"modified":"2025-09-07T07:33:38","modified_gmt":"2025-09-07T07:33:38","slug":"payment-in-lieu-of-notice","status":"publish","type":"post","link":"https:\/\/employmenthero.com\/uk\/blog\/payment-in-lieu-of-notice\/","title":{"rendered":"How does payment in lieu of notice work in the UK?"},"content":{"rendered":"\n<div class=\"wp-block-group alignfull blog-template-header has-neutral-100-background-color has-background has-global-padding is-layout-constrained wp-block-group-is-layout-constrained\" style=\"padding-bottom:var(--wp--preset--spacing--16)\">\n<div class=\"wp-block-group has-global-padding is-layout-constrained wp-block-group-is-layout-constrained\"><div style=\"--bb--crumb-gap:.4em;\" class=\"blog-template-breadcrumb wp-block-employmentherocom2025-breadcrumb-block\"><nav role=\"navigation\" aria-label=\"Breadcrumbs\" class=\"breadcrumb\"><ol class=\"breadcrumb-items\"><li class=\"breadcrumb-item breadcrumb-item--current breadcrumb-item--home\"><span class=\"breadcrumb-item-name\">Home<\/span><\/li><\/ol><\/nav><script type=\"application\/ld+json\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@type\":\"BreadcrumbList\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"item\":{\"name\":\"Home\",\"@id\":\"https:\\\/\\\/employmenthero.com\\\/uk\\\/\"}}]}<\/script><\/div>\n\n\n<div class=\"wp-block-group blog-template-tags-row is-content-justification-space-between is-nowrap is-layout-flex wp-container-core-group-is-layout-4 wp-block-group-is-layout-flex\" style=\"padding-bottom:var(--wp--preset--spacing--9)\">\n<div class=\"wp-block-group blog-template-tags is-layout-flex wp-container-core-group-is-layout-1 wp-block-group-is-layout-flex\">\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\" style=\"padding-top:var(--wp--preset--spacing--2);padding-bottom:var(--wp--preset--spacing--2)\">\n<div class=\"wp-block-button is-style-ghost is-style-ghost--1\"><a class=\"wp-block-button__link has-btn-black-background-color has-background wp-element-button has-icon__eye\"><span class=\"wp-block-button__link-icon\" aria-hidden=\"true\"><svg width=\"20\" height=\"20\" viewBox=\"0 0 20 20\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"> <g clip-path=\"url(#clip0_5893_17419)\"> <path d=\"M19.8727 9.55732C19.7127 9.30315 15.8927 3.33398 10.0002 3.33398C4.10771 3.33398 0.287713 9.30315 0.127713 9.55732C0.0442677 9.69013 0 9.8438 0 10.0007C0 10.1575 0.0442677 10.3112 0.127713 10.444C0.287713 10.6982 4.10771 16.6673 10.0002 16.6673C15.8927 16.6673 19.7127 10.6982 19.8727 10.444C19.9562 10.3112 20.0004 10.1575 20.0004 10.0007C20.0004 9.8438 19.9562 9.69013 19.8727 9.55732ZM10.0002 15.0007C5.88605 15.0007 2.80271 11.299 1.84855 10.0007C3.12342 8.22835 4.79779 6.78123 6.73605 5.77648C6.15544 6.50283 5.83739 7.40411 5.83355 8.33398C5.83355 9.43905 6.27253 10.4989 7.05394 11.2803C7.83534 12.0617 8.89514 12.5007 10.0002 12.5007C11.1053 12.5007 12.1651 12.0617 12.9465 11.2803C13.7279 10.4989 14.1669 9.43905 14.1669 8.33398C14.1629 7.40674 13.8468 6.50785 13.2694 5.78232C15.2033 6.78886 16.8752 8.23337 18.1519 10.0007C17.201 11.3015 14.1277 15.0007 10.0002 15.0007Z\" fill=\"currentColor\"\/> <\/g> <defs> <clipPath id=\"clip0_5893_17419\"> <rect width=\"20\" height=\"20\" fill=\"white\"\/> <\/clipPath> <\/defs> <\/svg><\/span>Blog<\/a><\/div>\n<\/div>\n\n\n<ul style=\"display: flex; gap: var(--wp--preset--spacing--2); padding-left: 0; flex-wrap: wrap;\"><li style=\"background-color: #e8e7e8;padding: var(--wp--preset--spacing--0-5) var(--wp--preset--spacing--3);border-radius: var(--wp--preset--spacing--8);margin: 0;display: inline-flex;align-self: center;\">\n                <span class=\"has-sm-font-size\" >\n                    <a href=\"https:\/\/employmenthero.com\/uk\/resources\/business-basics\" title=\"Business Basics\" style=\"font-weight: 500;\">Business Basics<\/a>\n                <\/span>\n                <\/li><\/ul><\/div>\n\n\n\n<div class=\"wp-block-group blog-template-social-desktop is-vertical is-layout-flex wp-container-core-group-is-layout-3 wp-block-group-is-layout-flex\">\n<div class=\"wp-block-group is-nowrap is-layout-flex wp-container-core-group-is-layout-2 wp-block-group-is-layout-flex\" style=\"margin-top:var(--wp--preset--spacing--2);margin-bottom:var(--wp--preset--spacing--2)\"><div \n    class=\"eh-social-sharing-button wp-block-employmentherocom2025-eh-social-sharing-button\" data-icon=\"facebook\" data-social-type=\"facebook\">\n    <span style=\"display: flex;\">\n        <svg class=\"icon\" width=\"24px\" height=\"24px\" viewBox=\"0 0 20 20\" version=\"1.1\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" xmlns:xlink=\"http:\/\/www.w3.org\/1999\/xlink\"> <title>Group<\/title> <path d=\"M14.4446 6.47609H11.4173V4.40033C11.4173 3.62078 11.9115 3.43904 12.2596 3.43904C12.6068 3.43904 14.3958 3.43904 14.3958 3.43904V0.0120058L11.4537 0C8.18772 0 7.44447 2.55599 7.44447 4.19168V6.47609H5.55566V10.0075H7.44447C7.44447 14.5394 7.44447 20 7.44447 20H11.4173C11.4173 20 11.4173 14.4856 11.4173 10.0075H14.0981L14.4446 6.47609Z\"><\/path><\/svg> \n    <\/span>\n    <\/div>\n\n<div \n    class=\"eh-social-sharing-button wp-block-employmentherocom2025-eh-social-sharing-button\" data-icon=\"twitter\" data-social-type=\"twitter\">\n    <span style=\"display: flex;\">\n        <svg class=\"icon\" width=\"17\" height=\"18\" viewBox=\"0 0 17 18\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"> <g clip-path=\"url(#clip0_2187_1527)\"> <path d=\"M6.88269 10.3821L0.554058 18H2.05374L7.54889 11.3855L11.9379 18H17L10.363 7.99774L17 0.00924304H15.5002L9.69721 6.99436L5.06215 0.00924304H-5.51343e-07L6.88306 10.3821H6.88269ZM8.93683 7.90961L9.60929 8.90561L14.9598 16.8309H12.6563L8.33833 10.4349L7.66587 9.43894L2.05303 1.12518H4.35659L8.93683 7.90923V7.90961Z\" fill=\"currentColor\"><\/path> <\/g> <defs> <clipPath id=\"clip0_2187_1527\"> <rect width=\"17\" height=\"18\" fill=\"white\" transform=\"matrix(-1 0 0 -1 17 18)\"><\/rect> <\/clipPath> <\/defs> <\/svg> \n    <\/span>\n    <\/div>\n\n<div \n    class=\"eh-social-sharing-button wp-block-employmentherocom2025-eh-social-sharing-button\" data-icon=\"linkedin\" data-social-type=\"linkedin\">\n    <span style=\"display: flex;\">\n        <svg class=\"icon\" width=\"17px\" height=\"16px\" viewBox=\"0 0 17 16\" version=\"1.1\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" xmlns:xlink=\"http:\/\/www.w3.org\/1999\/xlink\"> <title>Shape<\/title> <g id=\"Symbols\" stroke=\"none\" stroke-width=\"1\" fill=\"none\" fill-rule=\"evenodd\"> <g id=\"Icons\/Social\" transform=\"translate(-74.000000, -2.000000)\" fill=\"#000000\" fill-rule=\"nonzero\"> <path d=\"M74.2155762,7.20409322 L77.8588786,7.20409322 L77.8588786,18 L74.2155762,18 L74.2155762,7.20409322 Z M76.0616143,2 C74.8146643,2 74,2.80609002 74,3.86411056 C74,4.90036967 74.7908238,5.72989508 76.0139333,5.72989508 L76.0371667,5.72989508 C77.3079571,5.72989508 78.0993476,4.90032981 78.0993476,3.86411056 C78.0755071,2.80609002 77.3079976,2 76.0616143,2 Z M86.8041976,6.95048874 C84.8702857,6.95048874 84.0038929,7.99790755 83.5205667,8.73245583 L83.5205667,7.20409322 L79.8761714,7.20409322 C79.924419,8.21687707 79.8761714,18 79.8761714,18 L83.5205667,18 L83.5205667,11.9708054 C83.5205667,11.6478911 83.5444071,11.3261725 83.6402952,11.0948476 C83.9041595,10.4502147 84.5037738,9.78266458 85.5095667,9.78266458 C86.8291714,9.78266458 87.3561714,10.773129 87.3561714,12.2237722 L87.3561714,18 L91,18 L91,11.8093881 C91,8.49339883 89.2027762,6.95048874 86.8041976,6.95048874 Z\" id=\"Shape\"><\/path> <\/g> <\/g> <\/svg> \n    <\/span>\n    <\/div>\n\n<div \n    class=\"eh-social-sharing-button wp-block-employmentherocom2025-eh-social-sharing-button\" data-icon=\"link\" data-social-type=\"copy\">\n    <span style=\"display: flex;\">\n        <svg class=\"icon\" width=\"18px\" height=\"19px\" viewBox=\"0 0 18 19\" version=\"1.1\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" xmlns:xlink=\"http:\/\/www.w3.org\/1999\/xlink\"> <title>Group 7<\/title> <defs> <polygon id=\"path-1\" points=\"0 0 11.3597146 0 11.3597146 13.250495 0 13.250495\"><\/polygon> <polygon id=\"path-3\" points=\"0 0 11.4438464 0 11.4438464 13.237235 0 13.237235\"><\/polygon> <\/defs> <g id=\"Symbols\" stroke=\"none\" stroke-width=\"1\" fill=\"none\" fill-rule=\"evenodd\"> <g id=\"Icons\/Social\" transform=\"translate(-115.000000, 0.000000)\"> <g id=\"Group-7\" transform=\"translate(115.000000, 0.000000)\"> <g id=\"Group-3\" transform=\"translate(6.640285, 0.000000)\"> <mask id=\"mask-2\" fill=\"white\"> <use xlink:href=\"#path-1\"><\/use> <\/mask> <g id=\"Clip-2\"><\/g> <path d=\"M9.6365839,1.06427739 L9.6365839,1.06407143 C7.63313006,-0.581342526 4.71799441,-0.287025772 3.06469376,1.72767436 L1.68152847,3.42787366 C1.2637913,3.94153775 1.3305731,4.70585509 1.8305341,5.13486964 C2.33069565,5.56409016 3.0749216,5.4955055 3.49265877,4.98184141 L4.8760246,3.28143615 C5.71089731,2.25863908 7.1949372,2.1243532 8.19104884,2.98176443 C8.20769415,2.99597567 8.22413891,3.01059882 8.24038313,3.02522198 C9.18174573,3.92361924 9.26838157,5.42383144 8.43691815,6.43015171 L5.5610895,9.96627791 L5.53461744,9.99634806 C5.38079871,10.1792405 5.20090901,10.3370058 5.00076417,10.4640831 C4.04676718,11.0718709 2.80719278,10.901748 2.04211006,10.0579301 C1.59709864,9.56877523 0.850065046,9.54303024 0.374169553,10.0002613 C-0.100522665,10.4562566 -0.127195273,11.2205739 0.315008503,11.7099348 C1.3991598,12.9045024 2.99670869,13.4575049 4.56377459,13.1800768 C4.80503134,13.1364133 5.04287882,13.0742134 5.27470991,12.9934771 C6.09434113,12.7094584 6.82152068,12.1980598 7.37542854,11.5155086 L10.2440375,7.98947441 C11.0680808,6.96832503 11.4617524,5.65182909 11.3372134,4.33183184 C11.2235039,3.05137889 10.6100339,1.87267016 9.6365839,1.06427739\" id=\"Fill-1\" fill=\"#000000\" mask=\"url(#mask-2)\"><\/path> <\/g> <g id=\"Group-6\" transform=\"translate(0.000000, 5.762765)\"> <mask id=\"mask-4\" fill=\"white\"> <use xlink:href=\"#path-3\"><\/use> <\/mask> <g id=\"Clip-5\"><\/g> <path d=\"M7.78481199,8.39527139 L6.54864687,9.91484383 C5.73222439,10.9339336 4.27946967,11.1129128 3.25127068,10.3214088 C2.2300908,9.49612727 2.05361038,7.97696676 2.85719793,6.92821874 C2.87083505,6.91050619 2.88447217,6.89299959 2.89851039,6.87569896 L5.82387388,3.27984437 L5.84553284,3.25492322 C5.99915102,3.07203079 6.17924127,2.91447144 6.37938611,2.78739415 C7.23972815,2.23645131 8.34754387,2.31595185 9.12506044,2.98449782 C9.2157072,3.06235067 9.30073868,3.14700021 9.37915214,3.23782854 C9.60657122,3.50207514 9.93486491,3.6513961 10.2784001,3.64665902 C10.6175233,3.64171598 10.9377951,3.48498047 11.155588,3.21764447 L11.1696262,3.20034383 C11.5426416,2.74620216 11.5342187,2.07930388 11.1497722,1.63546021 C9.42768425,-0.367088286 6.45118155,-0.55698335 4.50107292,1.21159465 C4.32298813,1.37306725 4.15713665,1.54813319 4.00472174,1.73555674 L1.08738009,5.32173121 C-0.548874157,7.35084854 -0.312430505,10.3492133 1.62043117,12.0813364 C2.56821124,12.921447 3.80678291,13.3317192 5.05377751,13.2188532 C5.20097822,13.2064956 5.34697566,13.1875473 5.49176982,13.1613904 C6.61362375,12.9593437 7.63039162,12.3585585 8.36398864,11.4636626 L9.59594229,9.94923914 C10.0136795,9.43578101 9.94709821,8.67146367 9.44693666,8.24224316 C8.94677511,7.81302264 8.20254916,7.8816073 7.78481199,8.39527139\" id=\"Fill-4\" fill=\"#000000\" mask=\"url(#mask-4)\"><\/path> <\/g> <\/g> <\/g> <\/g> <\/svg> \n    <\/span>\n            <span class=\"eh-social-sharing-button__copied_text\">\n            URL copied for sharing!        <\/span>\n    <\/div><\/div>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-group has-global-padding is-content-justification-left is-layout-constrained wp-container-core-group-is-layout-5 wp-block-group-is-layout-constrained\"><h1 class=\"blog-template-title wp-block-post-title\">How does payment in lieu of notice work in the UK?<\/h1><\/div>\n\n\n\n<p class=\"blog-template-sub-title\" style=\"padding-top:var(--wp--preset--spacing--9);padding-bottom:var(--wp--preset--spacing--9);line-height:1.5\">\n    Let&#8217;s explore how payment in lieu of notice works in the UK and what employers should be aware of.\n<\/p>\n\n\n\n<div class=\"wp-block-group blog-template-meta-row is-layout-flex wp-container-core-group-is-layout-8 wp-block-group-is-layout-flex\">\n<div class=\"wp-block-query wp-block-hosts-query has-global-padding is-content-justification-left is-layout-constrained wp-container-core-query-is-layout-1 wp-block-query-is-layout-constrained\"><ul data-wp-interactive=\"eh-hosts\" class=\"wp-block-post-template is-layout-flow wp-container-core-post-template-is-layout-1 wp-block-post-template-is-layout-flow\"><li data-host-index=\"0\" data-wp-on--click=\"actions.openDetail\" class=\"wp-block-post post-1620 hosts type-hosts status-publish has-post-thumbnail hentry\">\n\n<div class=\"wp-block-group is-nowrap is-layout-flex wp-container-core-group-is-layout-7 wp-block-group-is-layout-flex\"><figure style=\"width:52px;height:52px;\" class=\"wp-block-post-featured-image\"><img loading=\"lazy\" decoding=\"async\" width=\"120\" height=\"120\" src=\"https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2021\/07\/EH_Favicon-120x120.png\" class=\"attachment-host_thumbnail size-host_thumbnail wp-post-image\" alt=\"\" style=\"border-radius:60px;height:52px;object-fit:cover;\" srcset=\"https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2021\/07\/EH_Favicon-120x120.png 120w, https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2021\/07\/EH_Favicon-150x150.png 150w, https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2021\/07\/EH_Favicon.png 239w\" sizes=\"auto, (max-width: 120px) 100vw, 120px\" \/><\/figure>\n\n\n<div class=\"wp-block-group has-sm-font-size is-vertical is-content-justification-center is-layout-flex wp-container-core-group-is-layout-6 wp-block-group-is-layout-flex\"><h6 style=\"line-height:1.3; border-right-width:1px;border-right-color:var(--wp--preset--color--black); padding-right:var(--wp--preset--spacing--2);\" class=\"has-text-align-center has-link-color wp-elements-1e20e747939e3458765ab321928f59b7 wp-block-post-title has-text-color has-violet-500-color has-sm-font-size\">The Team<\/h6><\/div>\n<\/div>\n\n<\/li><\/ul><\/div>\n\n\n\n<p class=\"has-text-align-center has-sm-font-size\" style=\"border-left-style:none;border-left-width:0px;padding-left:0\">Published<\/p>\n\n\n<div class=\"wp-block-post-date has-sm-font-size\"><time datetime=\"2023-05-22T18:04:12+00:00\">May 22, 2023<\/time><\/div>\n\n\n<p class=\"has-text-align-center has-sm-font-size\" style=\"border-left-color:var(--wp--preset--color--neutral-700);border-left-width:1px;padding-left:var(--wp--preset--spacing--2)\">Updated<\/p>\n\n\n<div class=\"wp-block-post-date__modified-date wp-block-post-date has-sm-font-size\"><time datetime=\"2025-09-07T07:33:38+00:00\">Sep 7, 2025<\/time><\/div>\n\n\n<p class=\"has-sm-font-size\" style=\"border-left-color:var(--wp--preset--color--neutral-700);border-left-width:1px;padding-left:var(--wp--preset--spacing--2)\">7 mins read<\/p>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-group alignfull blog-image-container has-global-padding is-layout-constrained wp-block-group-is-layout-constrained\">\n<figure class=\"wp-block-image aligncenter size-large is-resized blog-template-image\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"682\" src=\"https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2022\/11\/Real-estate-agent-signing-documents-with-new-tenants_Harcourts-Coastal-1024x682.jpg\" alt=\"\" class=\"wp-image-9041\" style=\"object-fit:cover;width:864px;height:561px\" srcset=\"https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2022\/11\/Real-estate-agent-signing-documents-with-new-tenants_Harcourts-Coastal-1024x682.jpg 1024w, https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2022\/11\/Real-estate-agent-signing-documents-with-new-tenants_Harcourts-Coastal-300x200.jpg 300w, https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2022\/11\/Real-estate-agent-signing-documents-with-new-tenants_Harcourts-Coastal-768x512.jpg 768w, https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2022\/11\/Real-estate-agent-signing-documents-with-new-tenants_Harcourts-Coastal.jpg 1309w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n<\/div>\n\n\n\n<div style=\"height:66px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"wp-block-group has-global-padding is-layout-constrained wp-container-core-group-is-layout-14 wp-block-group-is-layout-constrained\">\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-1 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" id=\"content-wrapper\">\n<div class=\"content-single-table-content\"><\/div>\n\n\n\n<div class=\"wp-block-group content_single content_single--blog content-single-content-wysiwyg wysiwyg content-wrapper has-global-padding is-layout-constrained wp-block-group-is-layout-constrained\" style=\"margin-bottom:var(--wp--preset--spacing--4)\">\n<p>Perhaps, like many employers, you have nightmares around compliance. Or maybe you\u2019ve suffered too many sleepless nights worrying about the implications of employment law. You might have even been tortured by thoughts about how to protect your business in the event that you need to terminate staff.\n\n<a href=\"https:\/\/employmenthero.com\/uk\/resources\/employee-offboarding-checklist-guide\/\">Offboarding processes<\/a> can be difficult to navigate, especially when you\u2019re considering payment in lieu of notice, or its rather catchy acronym, PILON. In this post, we\u2019ll break down how payment in lieu of notice works, including when it may be applicable, how it\u2019s calculated, and the legal considerations that SMEs should keep in mind. By the end, we hope that you\u2019ll have a better understanding of what payment in lieu of notice is and when it might be appropriate for your business.\n<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"what-is-payment-in-lieu-of-notice\">What is payment in lieu of notice?<\/h2>\n\n\n\n<p>\nPayment in lieu of notice, (PILON) occurs when an employee ceases work immediately, but still receives payment for their notice period. Agreements surrounding payment in lieu of notice differ depending on circumstance, but it can include:\n<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>All basic pay that would have been received during the notice period<\/li>\n\n\n\n<li>Extras like pension contributions or private health care insurance, if they\u2019re in the contract<\/li>\n\n\n\n<li>Payment for annual leave that would have accrued during the notice period<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"is-payment-in-lieu-of-notice-mandatory\">Is payment in lieu of notice mandatory?<\/h3>\n\n\n\n<p>\nPILON isn\u2019t mandatory \u2013 it is up to the employer and employee to decide if it is the best option. However, it is mandatory to abide by the terms of the employment contract. As an employer, you must always fully pay out your employee\u2019s notice period. Employees with more than one month\u2019s service are entitled to a <a href=\"https:\/\/www.acas.org.uk\/notice-periods\/notice-when-being-dismissed-or-made-redundant\">minimum statutory notice period<\/a> upon termination of their employment.\n\nHowever, if there\u2019s a <a href=\"https:\/\/www.acas.org.uk\/notice-periods\/when-an-employee-is-not-required-to-work-their-notice\">PILON clause in the employee\u2019s contract<\/a>, you may be able to provide your employee with payment instead of them working their notice. It is also possible to agree on payment in lieu of notice verbally or in writing, rather than having an employee work their notice.\n\nIt\u2019s important to remember that terminating a contract with immediate effect, and no notice period or payment, you are likely to be in breach of contract. So before doing anything, make sure you are aware of your legal obligations as an employer.\n<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"when-could-employers-provide-payment-in-lieu-of-notice\">When could employers provide payment in lieu of notice?<\/h2>\n\n\n\n<p>\nPaying someone to not work may seem like an unusual concept. But there are several scenarios where PILON may be a better option than an employee working their notice.\n<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"dismissal-or-redundancy\">Dismissal or redundancy<\/h3>\n\n\n\n<p><a href=\"https:\/\/employmenthero.com\/uk\/blog\/warning-procedures\/\">Dismissal procedures<\/a>, or making someone redundant, is unpleasant. In this situation it might be best for both parties if the employment is ended with immediate effect, and therefore some employers may wish to offer payment in lieu of notice.\n<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"gardening-leave\">Gardening leave<\/h3>\n\n\n\n<p>\nEmployers may put employees on <a href=\"https:\/\/employmenthero.com\/uk\/blog\/what-is-gardening-leave\/\">gardening leave<\/a>, which means that they are asked to stay away from the workplace during their notice period. In this situation, an employer may choose to offer PILON while the employee is not required to come to work.\n<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"by-agreement\">By agreement<\/h3>\n\n\n\n<p>\nSome employment contracts may include a PILON clause, which specifies that the employer has the option to offer payment in lieu of notice instead of requiring the employee to work their notice period. Even without such a clause, the employee may request this. In this situation, the employer may choose this option.\n\nIn some cases, PILON may not be appropriate, such as when an employee is dismissed for gross misconduct. As a small or medium-sized business owner, it\u2019s important to review employment contracts carefully and seek <a href=\"https:\/\/employmenthero.com\/uk\/services\/hr-advisory\/\">legal advice<\/a> if you\u2019re unsure about the appropriateness of offering payment in lieu of notice in a particular situation.\n<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"can-an-employee-decline-payment-in-lieu-of-notice-and-request-to-serve-a-notice-period\">Can an employee decline payment in lieu of notice and request to serve a notice period?<\/h2>\n\n\n\n<p>\nIt\u2019s within the employee\u2019s rights to insist on working their notice period, and there may be valid reasons for them to decline PILON. The right to work the notice period is typically considered the default option as this is what is required to lawfully terminate an employment contract, unless the employer and employee mutually agree otherwise or specific circumstances dictate otherwise.\n\nIf an employee wishes to serve their notice period rather than accept payment in lieu, they should communicate their preference to their employer in writing. The employee must clearly state their desire to work the notice period and provide a proposed end date. The employer can then review the request and decide whether or not to accept it.\n<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"how-to-decide-between-payment-in-lieu-and-notice-period\">How to decide between payment in lieu and notice period<\/h3>\n\n\n\n<p>\nThe decision to offer PILON or ask an employee to work their notice period will depend entirely on the circumstances. As an employer, it\u2019s worth considering whether the employee needs to wrap up and hand over any important tasks or projects. It is also important to establish the impact that the decision would have on the wider team, and if it would impact staff morale for a member of the team to leave with immediate effect. Allowing the employee to work their notice period also gives you time to hire a suitable replacement.\n\nHowever, in some circumstances, such as where it is not in either the employer or employee\u2019s best interest to see out the notice period, payment in lieu would be a more appropriate solution.\n\nTo make the decision, you\u2019ll need to weigh up what\u2019s best for your company and for the employee who will be leaving.\n<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"are-there-any-tax-implications-for-payment-in-lieu-of-notice\">Are there any tax implications for payment in lieu of notice?<\/h2>\n\n\n\n<p>\nPayments in lieu are taxable as earnings under UK tax law. This means that the employee will be required to pay income tax and National Insurance contributions on the amount received as PILON.\n<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"how-is-payment-in-lieu-of-notice-calculated\">How is payment in lieu of notice calculated?<\/h2>\n\n\n\n<p>\nCalculating payment in lieu of notice can be a complex process and the exact method will depend on the terms of the employee\u2019s employment contract. In general, the amount of PILON that an employer is required to pay an employee will depend on the length of the notice period that the employee is entitled to receive.\n\nFor example, if an employee is entitled to four weeks\u2019 notice under their contract and the employer terminates their employment without providing this notice period, the employer would need to pay the employee the equivalent of four weeks\u2019 pay as PILON. The amount of pay would be based on the employee\u2019s normal rate of pay, which is their basic salary, and may also include other amounts owed such as any unused <a href=\"https:\/\/employmenthero.com\/uk\/blog\/leave-management-guide\/\">leave entitlement<\/a>, bonuses, and other benefits.\n<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"the-wrap-up\">The wrap-up<\/h2>\n\n\n\n<p>\nOffboarding and dealing with the legal requirements of a member of staff leaving can be a tricky process. But with the right understanding of the legal requirements and potential risks involved when it comes to payments in lieu, you\u2019ll be well-equipped to make informed decisions.\n\nBut let\u2019s be real \u2013 managing offboarding on your own can be a bit of a headache. That\u2019s where HR information systems (HRIS) or employment software can come in handy.\n<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"how-can-employment-hero-help-you-manage-employees-better\">How can 91±¬ΑΟ help you manage employees better?<\/h2>\n\n\n\n<p><a href=\"https:\/\/employmenthero.com\/uk\/pricing\/\">91±¬ΑΟ<\/a> is the world\u2019s first Employment OS (operating system), and our integrated next-gen platform is changing employment for the better.\n\n91±¬ΑΟ offers everything your business needs, from finding and hiring top talent using SmartMatch to seamlessly onboarding new hires, automating complex payroll, and driving employee engagement and morale, all backed by UK-based expert support.\n\nNot only can this save you time and effort, but it can also reduce the risk of errors or omissions that could lead to costly legal disputes. So, if you\u2019re looking to streamline your HR processes and manage compliance, talk to one of our specialists today.<\/p>\n<\/div>\n\n\n\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-2 wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\" data-trigger-modal=\"request-a-demo-modal\"><a class=\"wp-block-button__link wp-element-button\">Learn more<\/a><\/div>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:410px\">\n<div class=\"wp-block-group right-sticky-side-panel has-global-padding is-layout-constrained wp-block-group-is-layout-constrained wp-container-2 is-position-sticky\">\n    <div class=\"top-sticky-form is-layout-flow wp-block-marketo-form-is-layout-flow\" class=\"wp-block-employmentherocom2025-marketo-form\">\n        <div class=\"right-sidebar-wrapper\">\n            <button class=\"top-form-trigger\" data-sticky-form-trigger=\"\">\n                <div class=\"top-form-trigger-container\">\n                    <div class=\"top-form-trigger-container__preheader\">\n                        Download now\n                    <\/div>\n                    <div class=\"top-form-trigger-container__title\">\n                        Guide to Payroll in the UK                    <\/div>\n                <\/div>\n                <span class=\"top-form-trigger-close\">\n                    <svg class=\"icon\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 15 15\">\n                        <path d=\"M14.142 0l1.06 1.06-6.541 6.541 6.542 6.541-1.06 1.06L7.6 8.662l-6.54 6.542L0 14.143 6.541 7.6 0 1.061 1.06 0l6.541 6.541L14.142 0z\" fill-rule=\"evenodd\"><\/path>\n                    <\/svg>\n                <\/span>\n                <span class=\"top-form-trigger-open\">\n                    <svg class=\"icon\" viewBox=\"0 0 32 32\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n                        <defs>\n                            <style>.cls-1{fill:white;stroke:white;stroke-linecap:round;stroke-linejoin:round;stroke-width:2px;}<\/style>\n                        <\/defs>\n                        <title><\/title>\n                        <g id=\"chevron-bottom\">\n                            <line class=\"cls-1\" x1=\"16\" x2=\"7\" y1=\"20.5\" y2=\"11.5\"><\/line>\n                            <line class=\"cls-1\" x1=\"25\" x2=\"16\" y1=\"11.5\" y2=\"20.5\"><\/line>\n                        <\/g>\n                    <\/svg>\n                <\/span>\n            <\/button>\n\n            <div class=\"form-wrapper\">\n                <div class=\"fixed-form-container\">\n                    <div class=\"hero-landing-marketo-form form-content-container\">\n                                                    <div class=\"marketo-form-scroll-to\" style=\"background-color: #F9F5FF\">\n                                                                    <div class=\"header-text\">\n                                        Download now\n                                    <\/div>\n                                    <div class=\"sticky-marketo-form-scroll-to-text\">\n                                        Guide to Payroll in the UK                                    <\/div>\n                                    <div class=\"sticky-marketo-form-scroll-to-image\">\n                                        <img decoding=\"async\" src=\"https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2023\/02\/Payroll-Guide-The-Basics-of-Payroll-In-the-United-Kingdom-single-page-cover-e1747641045747.png\" alt=\"Sticky Marketo Form Scroll To\"\/>\n                                    <\/div>\n                                                            <\/div>\n                            <div>\n                                <button class=\"sticky-marketo-form-scroll-to\">\n                                Guide to Payroll in the UK                                <\/button>\n                            <\/div>\n                                                                            <div class=\"eh_marketo_form-container\" data-marketo-form=\"{&quot;is_multi_steps&quot;:false,&quot;form_data&quot;:[{&quot;base_url&quot;:&quot;\/\/hr.employmenthero.io&quot;,&quot;munchkin_id&quot;:&quot;387-SZZ-170&quot;,&quot;form_id&quot;:&quot;5069&quot;,&quot;css_classes&quot;:&quot;&quot;}],&quot;submit_text&quot;:&quot;Download now&quot;,&quot;success_handling_method&quot;:&quot;thank_you_page&quot;,&quot;redirect_url&quot;:&quot;&quot;,&quot;thank_you_message&quot;:&quot;&quot;,&quot;add_lead_linking_id&quot;:false,&quot;add_drift_campaign_id&quot;:false,&quot;drift_campaign_id&quot;:&quot;&quot;,&quot;thank_you_page_id&quot;:&quot;32311&quot;,&quot;thank_you_page_url&quot;:&quot;https:\/\/employmenthero.com\/uk\/thank-you\/downloadable\/?origin=payment-in-lieu-of-notice&amp;origin_id=AVn%2BrlyvutB8X3rSN3WHyeOPIPpGjxH%2F%2Fe6waYu%2ByCoUN7Fp1c8FkaTdqp0%2B12MiKWtMHt1Bd%2BjifQYlETlY4A%3D%3D&quot;,&quot;progress_indicator_type&quot;:&quot;stepper&quot;,&quot;enable_revenue_hero&quot;:false,&quot;revenue_hero_router_id&quot;:&quot;4668&quot;,&quot;revenue_hero_thank_you_message&quot;:&quot;Thank you for booking!&quot;}\"><\/div>\n                                            <\/div>\n                <\/div>\n            <\/div>\n        <\/div>\n    <\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-group alignfull has-global-padding is-layout-constrained wp-block-group-is-layout-constrained\">\n<div class=\"wp-block-group has-global-padding is-layout-constrained wp-block-group-is-layout-constrained\" style=\"padding-top:var(--wp--preset--spacing--20);padding-bottom:var(--wp--preset--spacing--20)\">\n<div class=\"wp-block-group is-content-justification-space-between is-layout-flex wp-container-core-group-is-layout-15 wp-block-group-is-layout-flex\" style=\"margin-bottom:var(--wp--preset--spacing--10)\">\n<h3 class=\"wp-block-heading\">Related Resources<\/h3>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button is-style-link-arrow is-style-link-arrow--3\"><a class=\"wp-block-button__link has-btn-brand-background-color has-background wp-element-button\" href=\"\/resources\/?topic%5B0%5D%5B0%5D=Product\">View all<\/a><\/div>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-query blog-3-col-query-loop is-layout-flow wp-block-query-is-layout-flow\"><ul class=\"columns-3 alignfull wp-block-post-template is-layout-grid wp-container-core-post-template-is-layout-2 wp-block-post-template-is-layout-grid\"><li class=\"wp-block-post post-50792 post type-post status-publish format-standard has-post-thumbnail hentry category-uncategorized tag-in-depth-analysis resource-type-blog\">\n\n<div class=\"wp-block-group has-border-color has-neutral-100-border-color has-white-background-color has-background is-vertical is-layout-flex wp-container-core-group-is-layout-18 wp-block-group-is-layout-flex\" style=\"border-width:1px;min-height:100%\"><figure style=\"aspect-ratio:16\/9;width:100%;height:100%; padding-bottom:0;padding-top:0;margin-bottom:0;\" class=\"wp-block-post-featured-image\"><a href=\"https:\/\/employmenthero.com\/uk\/blog\/employment-rights-act-fire-and-rehire\/\" target=\"_self\"  style=\"height:100%\"><img loading=\"lazy\" decoding=\"async\" width=\"1600\" height=\"900\" src=\"https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2026\/05\/Fire-and-Rehire-Restrictions-Under-the-Employment-Rights-Act-A-UK-Employers-Guide-.webp\" class=\"attachment-post-thumbnail size-post-thumbnail wp-post-image\" alt=\"Fire and Rehire Restrictions Under the Employment Rights Act: A UK Employer&#8217;s Guide\" style=\"width:100%;height:100%;object-fit:cover;\" srcset=\"https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2026\/05\/Fire-and-Rehire-Restrictions-Under-the-Employment-Rights-Act-A-UK-Employers-Guide-.webp 1600w, https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2026\/05\/Fire-and-Rehire-Restrictions-Under-the-Employment-Rights-Act-A-UK-Employers-Guide--300x169.webp 300w, https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2026\/05\/Fire-and-Rehire-Restrictions-Under-the-Employment-Rights-Act-A-UK-Employers-Guide--1024x576.webp 1024w, https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2026\/05\/Fire-and-Rehire-Restrictions-Under-the-Employment-Rights-Act-A-UK-Employers-Guide--768x432.webp 768w, https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2026\/05\/Fire-and-Rehire-Restrictions-Under-the-Employment-Rights-Act-A-UK-Employers-Guide--1536x864.webp 1536w, https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2026\/05\/Fire-and-Rehire-Restrictions-Under-the-Employment-Rights-Act-A-UK-Employers-Guide--440x248.webp 440w\" sizes=\"auto, (max-width: 1600px) 100vw, 1600px\" \/><\/a><\/figure>\n\n\n<div class=\"wp-block-group blog-3-col-details wp-container-content-3 is-vertical is-content-justification-left is-nowrap is-layout-flex wp-container-core-group-is-layout-17 wp-block-group-is-layout-flex\" style=\"margin-top:0;padding-top:var(--wp--preset--spacing--10);padding-right:var(--wp--preset--spacing--10);padding-bottom:var(--wp--preset--spacing--10);padding-left:var(--wp--preset--spacing--10)\">\n<div class=\"wp-block-group is-vertical is-layout-flex wp-container-core-group-is-layout-16 wp-block-group-is-layout-flex\"><div style=\"font-style:normal;font-weight:600\" class=\"taxonomy-resource-type eh-resource-type wp-block-post-terms\"><a href=\"https:\/\/employmenthero.com\/uk\/resources\/blog\/\" rel=\"tag\">Blogs<\/a><\/div>\n\n<h3 class=\"wp-block-post-title\"><a href=\"https:\/\/employmenthero.com\/uk\/blog\/employment-rights-act-fire-and-rehire\/\" target=\"_self\" >Fire and Rehire Restrictions Under the Employment Rights Act: A UK Employer&#8217;s Guide<\/a><\/h3>\n\n<div class=\"wp-block-post-excerpt has-text-color has-contrast-2-color has-small-font-size wp-container-content-2\"><p class=\"wp-block-post-excerpt__excerpt\">The Employment Rights Act 2025 fundamentally restricts fire and rehire in the UK. Understand what&#8217;s changing, when it takes effect&hellip; <\/p><\/div><\/div>\n\n\n<a style=\"font-style:normal;font-weight:600;\" class=\"wp-elements-9dfcbcb7662772ecb2d671e8976a6c51 wp-block-read-more has-text-color has-violet-500-color\" href=\"https:\/\/employmenthero.com\/uk\/blog\/employment-rights-act-fire-and-rehire\/\" target=\"_self\">Read more<span class=\"screen-reader-text\">: Fire and Rehire Restrictions Under the Employment Rights Act: A UK Employer&#8217;s Guide<\/span><\/a><\/div>\n<\/div>\n<a href=\"https:\/\/employmenthero.com\/uk\/blog\/employment-rights-act-fire-and-rehire\/\" target=\"_self\" class=\"group-block-link\"><\/a>\n<\/li><li class=\"wp-block-post post-50755 post type-post status-publish format-standard has-post-thumbnail hentry category-uncategorized tag-employment-rights-act tag-in-depth-analysis resource-type-blog\">\n\n<div class=\"wp-block-group has-border-color has-neutral-100-border-color has-white-background-color has-background is-vertical is-layout-flex wp-container-core-group-is-layout-21 wp-block-group-is-layout-flex\" style=\"border-width:1px;min-height:100%\"><figure style=\"aspect-ratio:16\/9;width:100%;height:100%; padding-bottom:0;padding-top:0;margin-bottom:0;\" class=\"wp-block-post-featured-image\"><a href=\"https:\/\/employmenthero.com\/uk\/blog\/fair-work-agency-hmrc-employers-guide\/\" target=\"_self\"  style=\"height:100%\"><img loading=\"lazy\" decoding=\"async\" width=\"1600\" height=\"900\" src=\"https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2026\/05\/The-Fair-Work-Agency-vs-HMRC-Whats-Different-For-Employers.webp\" class=\"attachment-post-thumbnail size-post-thumbnail wp-post-image\" alt=\"The Fair Work Agency vs HMRC: What&#8217;s Different For Employers\" style=\"width:100%;height:100%;object-fit:cover;\" srcset=\"https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2026\/05\/The-Fair-Work-Agency-vs-HMRC-Whats-Different-For-Employers.webp 1600w, https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2026\/05\/The-Fair-Work-Agency-vs-HMRC-Whats-Different-For-Employers-300x169.webp 300w, https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2026\/05\/The-Fair-Work-Agency-vs-HMRC-Whats-Different-For-Employers-1024x576.webp 1024w, https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2026\/05\/The-Fair-Work-Agency-vs-HMRC-Whats-Different-For-Employers-768x432.webp 768w, https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2026\/05\/The-Fair-Work-Agency-vs-HMRC-Whats-Different-For-Employers-1536x864.webp 1536w, https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2026\/05\/The-Fair-Work-Agency-vs-HMRC-Whats-Different-For-Employers-440x248.webp 440w\" sizes=\"auto, (max-width: 1600px) 100vw, 1600px\" \/><\/a><\/figure>\n\n\n<div class=\"wp-block-group blog-3-col-details wp-container-content-6 is-vertical is-content-justification-left is-nowrap is-layout-flex wp-container-core-group-is-layout-20 wp-block-group-is-layout-flex\" style=\"margin-top:0;padding-top:var(--wp--preset--spacing--10);padding-right:var(--wp--preset--spacing--10);padding-bottom:var(--wp--preset--spacing--10);padding-left:var(--wp--preset--spacing--10)\">\n<div class=\"wp-block-group is-vertical is-layout-flex wp-container-core-group-is-layout-19 wp-block-group-is-layout-flex\"><div style=\"font-style:normal;font-weight:600\" class=\"taxonomy-resource-type eh-resource-type wp-block-post-terms\"><a href=\"https:\/\/employmenthero.com\/uk\/resources\/blog\/\" rel=\"tag\">Blogs<\/a><\/div>\n\n<h3 class=\"wp-block-post-title\"><a href=\"https:\/\/employmenthero.com\/uk\/blog\/fair-work-agency-hmrc-employers-guide\/\" target=\"_self\" >The Fair Work Agency vs HMRC: What&#8217;s Different For Employers<\/a><\/h3>\n\n<div class=\"wp-block-post-excerpt has-text-color has-contrast-2-color has-small-font-size wp-container-content-5\"><p class=\"wp-block-post-excerpt__excerpt\">The Fair Work Agency has replaced HMRC for employment rights. Understand the split, what&#8217;s changed for holiday pay and SSP,&hellip; <\/p><\/div><\/div>\n\n\n<a style=\"font-style:normal;font-weight:600;\" class=\"wp-elements-9dfcbcb7662772ecb2d671e8976a6c51 wp-block-read-more has-text-color has-violet-500-color\" href=\"https:\/\/employmenthero.com\/uk\/blog\/fair-work-agency-hmrc-employers-guide\/\" target=\"_self\">Read more<span class=\"screen-reader-text\">: The Fair Work Agency vs HMRC: What&#8217;s Different For Employers<\/span><\/a><\/div>\n<\/div>\n<a href=\"https:\/\/employmenthero.com\/uk\/blog\/fair-work-agency-hmrc-employers-guide\/\" target=\"_self\" class=\"group-block-link\"><\/a>\n<\/li><li class=\"wp-block-post post-50767 post type-post status-publish format-standard has-post-thumbnail hentry category-uncategorized tag-employment-rights-act tag-in-depth-analysis resource-type-blog\">\n\n<div class=\"wp-block-group has-border-color has-neutral-100-border-color has-white-background-color has-background is-vertical is-layout-flex wp-container-core-group-is-layout-24 wp-block-group-is-layout-flex\" style=\"border-width:1px;min-height:100%\"><figure style=\"aspect-ratio:16\/9;width:100%;height:100%; padding-bottom:0;padding-top:0;margin-bottom:0;\" class=\"wp-block-post-featured-image\"><a href=\"https:\/\/employmenthero.com\/uk\/blog\/collective-redundancy-changes-employment-rights-act-2025\/\" target=\"_self\"  style=\"height:100%\"><img loading=\"lazy\" decoding=\"async\" width=\"1600\" height=\"900\" src=\"https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2026\/05\/Collective-Redundancy-and-the-Employment-Rights-Act-What-Changes-for-UK-Employers.webp\" class=\"attachment-post-thumbnail size-post-thumbnail wp-post-image\" alt=\"Collective Redundancy and the Employment Rights Act: What Changes for UK Employers\" style=\"width:100%;height:100%;object-fit:cover;\" srcset=\"https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2026\/05\/Collective-Redundancy-and-the-Employment-Rights-Act-What-Changes-for-UK-Employers.webp 1600w, https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2026\/05\/Collective-Redundancy-and-the-Employment-Rights-Act-What-Changes-for-UK-Employers-300x169.webp 300w, https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2026\/05\/Collective-Redundancy-and-the-Employment-Rights-Act-What-Changes-for-UK-Employers-1024x576.webp 1024w, https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2026\/05\/Collective-Redundancy-and-the-Employment-Rights-Act-What-Changes-for-UK-Employers-768x432.webp 768w, https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2026\/05\/Collective-Redundancy-and-the-Employment-Rights-Act-What-Changes-for-UK-Employers-1536x864.webp 1536w, https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2026\/05\/Collective-Redundancy-and-the-Employment-Rights-Act-What-Changes-for-UK-Employers-440x248.webp 440w\" sizes=\"auto, (max-width: 1600px) 100vw, 1600px\" \/><\/a><\/figure>\n\n\n<div class=\"wp-block-group blog-3-col-details wp-container-content-9 is-vertical is-content-justification-left is-nowrap is-layout-flex wp-container-core-group-is-layout-23 wp-block-group-is-layout-flex\" style=\"margin-top:0;padding-top:var(--wp--preset--spacing--10);padding-right:var(--wp--preset--spacing--10);padding-bottom:var(--wp--preset--spacing--10);padding-left:var(--wp--preset--spacing--10)\">\n<div class=\"wp-block-group is-vertical is-layout-flex wp-container-core-group-is-layout-22 wp-block-group-is-layout-flex\"><div style=\"font-style:normal;font-weight:600\" class=\"taxonomy-resource-type eh-resource-type wp-block-post-terms\"><a href=\"https:\/\/employmenthero.com\/uk\/resources\/blog\/\" rel=\"tag\">Blogs<\/a><\/div>\n\n<h3 class=\"wp-block-post-title\"><a href=\"https:\/\/employmenthero.com\/uk\/blog\/collective-redundancy-changes-employment-rights-act-2025\/\" target=\"_self\" >Collective Redundancy and the Employment Rights Act: What Changes for UK Employers<\/a><\/h3>\n\n<div class=\"wp-block-post-excerpt has-text-color has-contrast-2-color has-small-font-size wp-container-content-8\"><p class=\"wp-block-post-excerpt__excerpt\">The Employment Rights Act 2025 has doubled the penalty for missed collective consultation. Find out what&#8217;s changed, what&#8217;s coming and&hellip; <\/p><\/div><\/div>\n\n\n<a style=\"font-style:normal;font-weight:600;\" class=\"wp-elements-9dfcbcb7662772ecb2d671e8976a6c51 wp-block-read-more has-text-color has-violet-500-color\" href=\"https:\/\/employmenthero.com\/uk\/blog\/collective-redundancy-changes-employment-rights-act-2025\/\" target=\"_self\">Read more<span class=\"screen-reader-text\">: Collective Redundancy and the Employment Rights Act: What Changes for UK Employers<\/span><\/a><\/div>\n<\/div>\n<a href=\"https:\/\/employmenthero.com\/uk\/blog\/collective-redundancy-changes-employment-rights-act-2025\/\" target=\"_self\" class=\"group-block-link\"><\/a>\n<\/li><\/ul><\/div>\n<\/div>\n<\/div>\n\n\n\n<style>\n.eh_marketo_form .mktoCheckboxList label {\n    line-height: 0.95rem !important;\n}\n.top-sticky-form .eh_marketo_form-container .eh_marketo_form_step_0 .mktoFieldDescriptor.mktoFormCol {\n    height: 4.5rem;\n}\n.top-sticky-form .eh_marketo_form-container .eh_marketo_form_step_0 .mktoFormRow:nth-last-of-type(-n+3) .mktoFieldDescriptor.mktoFormCol {\n    height: auto !important;\n}\n<\/style>\n","protected":false},"excerpt":{"rendered":"<p>Let&#8217;s explore how payment in lieu of notice works in the UK and what employers should be aware of.<\/p>\n","protected":false},"author":1,"featured_media":32034,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"_lite_auth_enabled":false,"_lite_auth_trigger_method":"scroll","_lite_auth_scroll_percent":25,"_lite_auth_click_element_query":"","exclude_from_algolia":false,"reading_time":"5 min read","display_reading_time":false,"download_content_type":"link","download_file":"","download_url":"https:\/\/drive.google.com\/drive\/folders\/1_xpH48OjXRwzLTEajOiDhcc0nRHnI03J?usp=sharing","download_cta_label":"Download Here","footnotes":""},"categories":[1],"tags":[],"resource-type":[157],"topic":[90],"industry":[65,57,55,66,72,35,76,41,77,58,43,67,46,69,40,59,73,70,45,54,47,49,51,68,52,50,64,44,42,53,48,74,75,56,71],"audience":[],"business-size":[],"product-tag":[],"funnel-stage":[],"region":[],"pain-point":[],"persona":[],"post_features":[],"class_list":["post-15927","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","resource-type-blog","topic-business-basics","industry-agriculture","industry-automotive","industry-business-consulting","industry-childcare","industry-colleges-and-sporting-clubs","industry-construction","industry-consumer-services","industry-customer-service","industry-early-education","industry-ecommerce","industry-education","industry-entertainment","industry-finance","industry-financial-services","industry-franchises","industry-health-and-fitness","industry-health-services","industry-healthcare","industry-hospitality","industry-it-and-technology","industry-legal","industry-logistics-manufacturing","industry-media-communications","industry-not-for-profit","industry-professional-services","industry-public-relations","industry-real-estate","industry-real-estate-and-strata-management","industry-recruitment","industry-retail","industry-stem","industry-technology","industry-utilities-public-services","industry-veterinary-services","industry-youth-services"],"_links":{"self":[{"href":"https:\/\/employmenthero.com\/uk\/wp-json\/wp\/v2\/posts\/15927","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/employmenthero.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/employmenthero.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/employmenthero.com\/uk\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/employmenthero.com\/uk\/wp-json\/wp\/v2\/comments?post=15927"}],"version-history":[{"count":4,"href":"https:\/\/employmenthero.com\/uk\/wp-json\/wp\/v2\/posts\/15927\/revisions"}],"predecessor-version":[{"id":41946,"href":"https:\/\/employmenthero.com\/uk\/wp-json\/wp\/v2\/posts\/15927\/revisions\/41946"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/employmenthero.com\/uk\/wp-json\/wp\/v2\/media\/32034"}],"wp:attachment":[{"href":"https:\/\/employmenthero.com\/uk\/wp-json\/wp\/v2\/media?parent=15927"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/employmenthero.com\/uk\/wp-json\/wp\/v2\/categories?post=15927"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/employmenthero.com\/uk\/wp-json\/wp\/v2\/tags?post=15927"},{"taxonomy":"resource-type","embeddable":true,"href":"https:\/\/employmenthero.com\/uk\/wp-json\/wp\/v2\/resource-type?post=15927"},{"taxonomy":"topic","embeddable":true,"href":"https:\/\/employmenthero.com\/uk\/wp-json\/wp\/v2\/topic?post=15927"},{"taxonomy":"industry","embeddable":true,"href":"https:\/\/employmenthero.com\/uk\/wp-json\/wp\/v2\/industry?post=15927"},{"taxonomy":"audience","embeddable":true,"href":"https:\/\/employmenthero.com\/uk\/wp-json\/wp\/v2\/audience?post=15927"},{"taxonomy":"business-size","embeddable":true,"href":"https:\/\/employmenthero.com\/uk\/wp-json\/wp\/v2\/business-size?post=15927"},{"taxonomy":"product-tag","embeddable":true,"href":"https:\/\/employmenthero.com\/uk\/wp-json\/wp\/v2\/product-tag?post=15927"},{"taxonomy":"funnel-stage","embeddable":true,"href":"https:\/\/employmenthero.com\/uk\/wp-json\/wp\/v2\/funnel-stage?post=15927"},{"taxonomy":"region","embeddable":true,"href":"https:\/\/employmenthero.com\/uk\/wp-json\/wp\/v2\/region?post=15927"},{"taxonomy":"pain-point","embeddable":true,"href":"https:\/\/employmenthero.com\/uk\/wp-json\/wp\/v2\/pain-point?post=15927"},{"taxonomy":"persona","embeddable":true,"href":"https:\/\/employmenthero.com\/uk\/wp-json\/wp\/v2\/persona?post=15927"},{"taxonomy":"post_features","embeddable":true,"href":"https:\/\/employmenthero.com\/uk\/wp-json\/wp\/v2\/post_features?post=15927"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}