Practical guidance on making payments in lieu of notice, including contractual PILON clauses; taxation of payments; settlement agreements; garden leave; and calculation of redundancy pay.
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.
In Fraser v Southwest London St George's Mental Health Trust  IRLR 100 EAT, the EAT held that, in order for an employee to claim unpaid wages in respect of annual leave during a period of sickness absence, it was necessary for her to have given formal notice of the leave and for the leave actually to have been taken.
In NHS Leeds v Larner  IRLR 894 EAT, the EAT held that a worker who was absent for the whole leave year and who did not submit a request for annual leave before the end of the leave year was nevertheless entitled to carry over her leave entitlement into the following year.
In Publicis Consultants UK Ltd v O'Farrell EAT/0430/10, the EAT held that a termination payment calculated by reference to the employee's contractual notice period, but labelled "ex gratia", did not meet the employer's obligation in respect of notice pay.
In Pressure Coolers Ltd v Molloy and others  IRLR 630 EAT, the EAT held that, in circumstances where a dismissal occurred after a TUPE transfer, the transferee was liable for awards for unfair and wrongful dismissal. The fact that the transferor had been in administration did not create a deemed dismissal on the date of transfer in respect of which the Secretary of State became liable to make payments. On the facts, the insolvent transferor had not effected any dismissal.
The Employment Appeal Tribunal has held that employees on sick leave must, to be paid for holiday under the Working Time Regulations 1998, give the required statutory notice during the relevant leave year of their intention to take that holiday.
HR and legal information and guidance relating to payments on termination.