What is payment in lieu of notice (PILON)?
PILON is money paid to you as an alternative to working your full notice period. It might be set out as an option in your contract, or used to cover potential damages for breach of contract. If PILON is included in your contract, the amount should be stated. It should normally cover what you would have earned during your notice period: basic pay and commission, bonuses or compensation for loss of benefits (e.g. personal use of a company car or medical insurance).
