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Contracts of employment: Contractual entitlement to payment in lieu of notice

This report relates to 1 case(s)

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    Abrahams v Performing Rights Society [1995] IRLR 486 CA (0 other reports)

An agreement between employer and employee that the employee, whose fixed-term contract providing for two years' notice or payment in lieu was about to expire, would continue to be employed for a further two years "under the terms of his existing contract" did not exclude the provisions in the original contract as to notice and payment in lieu. Therefore, holds the Court of Appeal in Abrahams v The Performing Right Society Ltd, on his summary dismissal six months into the new agreement the employee was entitled to two years' pay in lieu of notice as from the date of dismissal.