Pay in Lieu of Notice (PILON).

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  • #21683
    benmaco
    Participant

    Hi,

    I’m getting a bit confused with regards to how we treat pay in lieu. Having read circular A10/2007 over and over again, I still can’t work out whether this has been disregarded since October 2007. Is anyone able to clarify please?

    The waters have been further muddied here by JCPlus apparently treating it differently – on the one hand, they have disallowed JSA because the applicant receives PILON, on the other – they have awarded JSA to another who receives PILON.

    Any ideas please?

    Many thanks.

    #5683
    Anonymous
    Guest

    If the customer finishes work BEFORE their claim for HB/CTB, the Pay In Lieu is counted as capital.

    If the customer finishes work AFTER their claim for HB/CTB, or has an existing claim, the Pay In Lieu is counted as income for the period it relates to. (e.g. 2 months PILON paid on 1/3/09 will count for the period 1/3/09-1/5/09)

    That’s my reading of it anyway, and also explains why JC+ are treating some claims differently to others. I don’t think it’s a particularly fair way of dealing with it, but that’s how I intepret para 25 of A10/07.

    #5684
    benmaco
    Participant

    [quote:33ed29b3b4=”lorraine_cooper”]If the customer finishes work BEFORE their claim for HB/CTB, the Pay In Lieu is counted as capital.

    If the customer finishes work AFTER their claim for HB/CTB, or has an existing claim, the Pay In Lieu is counted as income for the period it relates to. (e.g. 2 months PILON paid on 1/3/09 will count for the period 1/3/09-1/5/09)

    That’s my reading of it anyway, and also explains why JC+ are treating some claims differently to others. I don’t think it’s a particularly fair way of dealing with it, but that’s how I intepret para 25 of A10/07.[/quote:33ed29b3b4]

    Thanks very much.

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