In this episode of Your Settlement Agreement Solicitor, Geoffrey Caesar explores the ins and outs of Payment in Lieu of Notice (PILON) when an employee is on long-term sick leave. A common question arises: if an employee is unfit to work due to illness, should PILON still reflect their full contractual salary, or should it be based on a reduced sick pay rate?

Geoffrey unpacks what PILON means and how it's typically calculated, emphasizing that, under UK employment law, PILON should be paid at the employee's usual salary regardless of sick leave. Employers choosing to end an employment contract through PILON are obligated to compensate for the full notice period, bypassing any reduced sick pay rates that might otherwise apply. Geoffrey also covers the distinction between PILON and working notice on sick leave, offering clarity on how these terms affect an employee’s final pay.

The episode concludes with guidance on what to do if there’s a dispute over PILON, highlighting the importance of reviewing employment contracts and, when needed, seeking legal advice to fully understand rights and obligations.

Tune in to learn why PILON protects employees financially even if they’re unable to work, helping both employees and employers navigate this often complex situation with confidence.

On Monday, 20th January 2025, Donald Trump will be sworn in as president of the US, again. The outcome of the US presidential election has sparked strong reactions internationally, including here in the UK.

Trump’s controversial legacy includes numerous allegations of sexual harassment, raising questions about workplace culture, power dynamics, and how we respond to these issues. In this episode, I will explore what this means for UK businesses and employees and how settlement agreements might be affected as companies and workers reflect on what this new era means for them.

A second Trump presidency implies a permissiveness in the US when it comes to sexual harassment. This contrasts with the tightening of anti-sexual harassment legislation in the UK. The combination of a permissive attitude in the US permeating UK work culture and a simultaneous development of UK law to prevent sexual harassment could create a perfect storm for a rise in workplace disputes involving sexual harassment. This may drive an increase in the use of settlement agreements both to settle claims and to get rid of employees who pose a risk under emerging UK legislation.

In Episode 20 of Your Settlement Agreement Solicitor, host Geoffrey Caesar explores a pivotal change in employment law with the recent introduction of compensation uplifts in workplace sexual harassment cases. As of October 26, 2024, employment tribunals can impose up to a 25% uplift in compensation where employers fail to prevent sexual harassment. This new law, added under Section 40A of the Equality Act, pushes employers to proactively tackle harassment risks, with significant financial consequences for those who don’t.

The episode delves into the reasons behind this law, its practical application, and the impact on settlement agreements. For employees, this law strengthens negotiation leverage, as the risk of an uplifted award could lead to higher settlement terms. Employers, on the other hand, face added pressure to settle harassment claims early and fairly, especially if they lack robust anti-harassment policies and training. Geoffrey also provides key insights for legal advisors navigating this new landscape, highlighting how this change affects risk assessment and settlement values.

Tune in to understand the practical and financial implications of this landmark law and how it shapes the future of workplace harassment claims and settlement discussions.