This is a preview. To continue reading please log in or Register to read this article

Dismissal: Payment in lieu cuts short notice period

This report relates to 1 case(s)

  • expand disabled

    Marshall (Cambridge) Ltd v Hamblin EAT/705/91 (0 other reports)

The EAT holds in Marshall (Cambridge) Ltd v Hamblin that, by exercising a contractual right to make a payment in lieu of notice, an employer can waive, or cut short, a period of notice given by a resigning employee, without this amounting to a dismissal. This was so, even though the payment made took no account of the loss of substantial commission to the employee for the balance of the original notice period.

Mr Hamblin was a car salesperson whose salary was made up of a basic wage and commission.