In Cavenagh v William Evans Ltd  IRLR 679 CA, the Court of Appeal held that an employer that elected to terminate a contract of employment by making explicit use of an express pay in lieu of notice clause could not avoid the obligation to make the payment in lieu of notice by relying on prior misconduct by the employee that was not noticed until after the dismissal.
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.
A model contract clause to set out how the employee's notice period will work in the event of redundancy.
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.
The Employment Appeal Tribunal has held that the tribunal was correct to find that a termination payment labelled as "ex gratia" was not pay in lieu of notice.
The Court of Appeal has held that an employee's contract of employment was terminated by the transfer of pay in lieu of notice into his bank account, even though he did not know at the time that this had happened.
HR and legal information and guidance relating to payments in lieu of notice.