FAQs

All items: Pay in lieu of notice

If an employer pays an employee in lieu of notice, is the payment taxable?
How should an employer calculate an employee's length of service for the purposes of redundancy pay if the employee is paid in lieu of notice?
Where an employee resigns, can the employer pay them in lieu of their notice period?
How should a payment in lieu of notice be calculated?
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?
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?
Can an employer dismiss an employee without notice if it pays them for the duration of the notice period?

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Frequently asked questions and answers on pay in lieu of notice.