Workplace glossary

What is PILON (Payment in Lieu of Notice)?

Definition & practical guide1 min read

PILON means payment in lieu of notice. Instead of the employee working their notice period, the employer pays the notice amount and employment usually ends sooner.

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It is common in HR and employment-law conversations, but it should be handled carefully because the rules depend on contract wording and local law.

Common questions

What does PILON (Payment in Lieu of Notice) mean in simple terms?

PILON means payment in lieu of notice. Instead of the employee working their notice period, the employer pays the notice amount and employment usually ends sooner.

What are the rules around PILON (Payment in Lieu of Notice)?

It is common in HR and employment-law conversations, but it should be handled carefully because the rules depend on contract wording and local law.