Pay in lieu of notice
In Atherton v Bensons Vending Ltd, an employment tribunal held that a small employer fairly dismissed an employee who made a personal attack on the managing director on Facebook. However, the claimant's wrongful dismissal was upheld because the employer could not show that his behaviour was so serious that it was entitled to dismiss him without notice pay.
The Court of Appeal has held that a debt claim for a company's failure to provide pay in lieu of notice to a former employee could not be defended by the discovery after the termination of employment that he committed gross misconduct while in employment.
The Employment Appeal Tribunal has held that the tribunal was correct to find that a termination payment labelled as "ex gratia" was not pay in lieu of notice.
The Court of Appeal has held that an employee's contract of employment was terminated by the transfer of pay in lieu of notice into his bank account, even though he did not know at the time that this had happened.
Helen Samuel, associate solicitor and Anna Bridges, associate solicitor, at Addleshaw Goddard, detail the latest rulings.
In Morrish v NTL Group Ltd [2007] CSIH 56 CS, the Court of Session has held that a pay in lieu of notice clause could not be implied into a contract of employment.
In Burlo v Langley and another [2006] EWCA Civ 1778 the Court of Appeal holds that an employee's compensation for lack of notice was restricted to her actual loss where she would have been in receipt of statutory sick pay during the notice period.
In Scotts Company (UK) Ltd v Budd, the EAT holds that an employee who had exhausted his contractual entitlement to sick pay, and had remained on unpaid sick leave for a year before he was dismissed, was not entitled to a week's pay for each week of his statutory minimum notice period.
This week's case roundup from Eversheds, covering company car policy and sex discrimination.
Where a contract of employment provided that "the employer may make a payment in lieu of notice to the employee" and the employer chose to summarily dismiss the employee without cause or pay in lieu of notice, the employee's claim was for damages for wrongful dismissal, subject to his duty to mitigate his loss, and not for a sum due under the contract, holds the Court of Appeal, by a majority, in Cerberus Software Ltd v Rowley.
Employment law cases: HR and legal information and guidance relating to pay in lieu of notice.