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Contracts of employment: Termination payment not penalty clause

This report relates to 1 case(s)

In Murray v Leisureplay plc [2005] EWCA (Civ) 963, the Court of Appeal holds that a clause in a director's service agreement that provided for one year's salary and other benefits to be paid on termination of the contract by the employer, was held not to be unenforceable as a penalty, as it was justifiable on commercial grounds.