PION

A question about : PION

My son was recently made redundant 10 days short of 9 years service. If the Statutory minimum notice was added he would be entitled to compensation based on 9 years service. However, the employment contract has a Pay In Lieu of Notice clause and the employees were sent home when made redundant.

The employer has provides compensation based on 8 years service and their solicitor argues that Section 86(3) of the Employment Rights Act 1966 overrides Section 86(1)- granting period of notice - when pay in lieu of notice is made under contract.
The Citizens Advice guidance notes state that the period of notice is included in the calculation of length of employment, even where PION is used, and where this goes into another year of service the higher compensation will apply.
I cannot find anything specifically on the Government or other legal sites on this point (which may be a good thing as you would expect an exception to the Statutory minimum contract terms would get a mention).
My Reading of Section 68(3) is that it allows a PION clause subject to Section (1 & 2) and does not override them but the solicitor is supposed to be an expert and I would like some guidance before going to the Employment Tribunal.

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