Where the conduct of an administrator or receiver of a company amounts to an election to treat a continued contract of employment as giving rise to a separate liability in the administration or receivership, that contract is "adopted" within the meaning of the Insolvency Act 1986, holds the House of Lords in Powdrill and Atkinson v Watson and another; Talbot and another v Cadge and another; and Talbot and another v Grundy and another.
The EAT holds in Londis (Holdings) Ltd v Wandless that an industrial tribunal was wrong to conclude that the fact that tax had been deducted from a dismissed employee's payment in lieu of notice placed the effective date of termination at the end of the notice period instead of at the earlier date given in the letter of dismissal.
An employee who took voluntary redundancy on very short notice in order to receive a bonus payable only to employees dismissed by a certain date, could not later claim damages representing pay in lieu of his contractual notice entitlement, holds the High Court in Baldwin v British Coal Corporation.
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.
In Delaney v Staples t/a De Montfort Recruitment, the House of Lords holds that a payment in lieu of notice, paid by an employer when terminating employment without notice, is not "wages"; and so cannot be the subject of a complaint to an industrial tribunal under the Wages Act 1986.
In the first Wages Act case to come before the Court of Appeal - Delaney v Staples t/a De Montfort Recruitment - the Court rules that a payment in lieu of notice is not "wages" and so cannot be the subject of a complaint under the Act.
In Kowalska v Freie und Hansestadt Hamburg (27 June 1990) EOR34B, the European Court of Justice holds that the exclusion of part-time workers from the right to severance payments under the collective agreement for the West German public services contravenes Article 119 of the EEC Treaty unless the employer shows that the provision is justified by objective factors.
In Secretary of State for Employment v Cooper  ICR 766 EAT, the Employment Appeal Tribunal held that it was appropriate for the Secretary of State for Employment to reduce the amount of money awarded in lieu of notice in an insolvency case by an amount equivalent to the basic rate of tax.
HR and legal information and guidance relating to payments on termination.