How to make a payment in lieu of notice

The XpertHR "how to" section provides practical guidance for employers on paying an employee in lieu of his or her notice period. The guide looks at when it might be appropriate to make a payment in lieu of notice and the relevance of whether or not there is a payment in lieu of notice clause in the employee's contract. 

The calculation of a payment in lieu of notice can present complications; the guide explains what should be covered by the payment, including how to deal with accrued holiday entitlement and benefits in kind. Practical considerations such as the importance of clearly communicating the position to the employee are also dealt with. 

• How to make a payment in lieu of notice Guidance for employers on the practicalities of making a payment in lieu of notice. 

Also

Contractual rights on termination The XpertHR employment law manual sets out the law on payments in lieu of notice. 

Consequences of making a payment in lieu of notice The XpertHR quick reference section sets out the different consequences depending on whether or not there is a contractual payment in lieu of notice clause. 

The XpertHR FAQs section answers employers' questions on payments in lieu of notice, including:

• If an employer pays an employee in lieu of notice, is the payment taxable?
• Where a payment in lieu of notice is made, will the employer be obliged to compensate the employee for the loss of use of a company car?