Help Center

PILON stands for “Payment in Lieu of Notice”. It refers to a situation where an employer makes a payment as a lump sum equivalent to the salary and benefits the employee would have received during the notice period instead of providing the employee with the notice period required under their employment contract. This allows for an immediate termination of the employment relationship, and the employee receives compensation without having to work through the notice period. If your employer chooses to pay you PILON your employment will terminate immediately.

Garden leave refers to a practice in employment contracts where an employee is required to serve out a notice period away from the workplace. During this period, the employee remains on the payroll and continues to receive their salary and benefits, even though they are not performing their regular duties. The purpose of garden leave is to protect the employer’s interests, particularly in situations where the departing employee may have access to sensitive information, trade secrets, or clients. It may also help an employee look for another job as it looks like they are still employed rather than answer questions as to why they are available immediately.

There is no legal right to be issued a reference by your former employer. Therefore if reference is important, it may be useful to leave your employment on agreed terms by way of a settlement agreement and incorporate the wording of the reference into it. This way, your employer would be contractually obliged to issue a reference to you in the form of agreed wording. Your reference will normally be basic, which will include your dates of employment and your position. Most industries see this type of reference as standard and will not make bad inferences. This is the case because your employer can be sued for misrepresentation by your new employer if your former employer says something misleading (positive or negative). As such basic references are becoming more and more standard industry practices. Some industries however (such as care, teaching etc), require specific references so it is important that you consider this before you leave your employment.

Without prejudice” is a legal term that is often used in the context of negotiations and communications between parties involved in a dispute or legal matter. When a statement or communication is made “without prejudice,” it means that the content of that communication cannot be used as evidence in a court of law. The purpose of the “without prejudice” rule is to encourage open and honest discussions between parties, with the goal of reaching a settlement or resolution, without the fear that statements made during negotiations could later be used against one of the parties in court. This rule is intended to facilitate a free exchange of information and encourage parties to explore possible solutions to their dispute without the concern that their statements might be used against them in legal proceedings.