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.
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.