Does Sevice under PILON count for redundancy

[peno]

Can anyone help answer this relatively straight forward question. I have read multiple revenue pages etc but can't get a definitive answer.

In a case where PILON is being made, and is included under the contract of employment, should that notional service be included in the calculation to calculate Sevice for statutory service etc.

So in this particular example the employee has say 6 months service and the employer is paying the 6 months under PILON. However should statutory redundancy be based on the actual leave date or the notional leave date in 6 months time?

In this case it would add another year to the calculation hence the importance of the calculation

Similar question for calculating SCSB service etc.

Also under the normal scheme of things the employee would be entitled to Pension, VHI, LIFE and PHI cover. Should they also be covered up to the end of the notice period or some compensation given in lieu of this. At present the PILON is just salary.

 

[Joe_90]

You are not working so it can't count to service!

 

[peno]

I'm not sure it's as clear as that - otherwise one could hang around until the end of the notice period as it mutually agreeable not at the emoyers option?

This blog seems to suggest the effective date of leaving should include the notice period everything else is silent on it

http://www.brightcontracts.ie/blog/2012/08/payment-in-lieu-of-notice/

 

[JoeRoberts]

I got a written opinion from Revenue on PILON recently. Below is their answer. I specifically asked if the PILON period could be used to enhance SCSB service and answer is no.

Pay in lieu of notice is an amount paid to the employee so they don’t work out their notice. The date of leaving on the P45 is the last day the employee worked for the employer. The notice period not worked is not considered to be insurable for PRSI purposes or included in a service period.