Pay in lieu of notice

New and updated

• Date:

  15 April 2011

  Type:

  Employment law cases

  Transfer of pay in lieu of notice terminated contract of employment

  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. 

• Type:

  Employment law cases

  Case round-up

  Helen Samuel, associate solicitor and Anna Bridges, associate solicitor, at Addleshaw Goddard, detail the latest rulings.

• Type:

  FAQs

  If an employee receives a payment in lieu of notice, will their annual leave entitlement accrue up to the termination date, or the end of the notice period?

• Date:

  19 July 2007

  Type:

  Employment law cases

  Morrish v NTL Group Ltd

  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.

• Date:

  16 February 2007

  Type:

  Employment law cases

  Unfair dismissal compensation: Norton Tool not general authority for awarding more than actual loss

  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.

• Date:

  4 April 2003

  Type:

  Employment law cases

  Contracts of employment: 13-week contractual notice disentitled employee on sick leave from statutory notice pay

  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.

• Type:

  Employment law cases

  Case roundup: company car policy and sex discrimination

  This week's case roundup from Eversheds, covering company car policy and sex discrimination.

• Type:

  FAQs

  Can an employer dismiss an employee without notice if it pays them for the duration of the notice period?

• Date:

  1 March 2001

  Type:

  Employment law cases

  Pay in lieu of notice: Unpaid pay in lieu of notice was not recoverable as a debt

  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.

• Date:

  15 September 1999

  Type:

  Employment law cases

  Breach of contract: Employer was liable to make payment in lieu of notice without deduction for mitigation

  A provision of a contract of employment, which entitled the employer to terminate the contract either by giving the employee notice or summarily on paying him in lieu of notice, did not give the employer a third option of giving no notice and making no, or less than full, payment, holds the EAT in Cerberus Software Ltd v Rowley.