Payments in lieu of notice

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  • Pay in lieu of notice: Unpaid pay in lieu of notice was not recoverable as a debt

    Date:
    1 March 2001
    Type:
    Law reports

    Where a contract of employment provided that "the employer may make a payment in lieu of notice to the employee" and the employer chose to summarily dismiss the employee without cause or pay in lieu of notice, the employee's claim was for damages for wrongful dismissal, subject to his duty to mitigate his loss, and not for a sum due under the contract, holds the Court of Appeal, by a majority, in Cerberus Software Ltd v Rowley.

  • Secretary of State for Trade and Industry v Walden and another

    Date:
    1 March 2000
    Type:
    Law reports

    In Secretary of State for Trade and Industry v Walden and another [2000] IRLR 168 EAT, the EAT held that the statutory definition contained in the Employment Rights Act 1996, section 183 is exhaustive in setting out the events that can constitute "insolvency" for the purposes of an employee's claim for certain payments from the Secretary of State.

  • Wrongful dismissal: Dismissal "with immediate effect" did not eliminate right to pay in lieu of notice

    Date:
    15 January 2000
    Type:
    Law reports

    A term of a contract of employment providing that the employee could be dismissed "with immediate effect" if he missed performance targets did not terminate or exclude his right, under other provisions of the contract, to a payment in lieu of three months' notice, holds the Court of Appeal in T & K Home Improvements Ltd v Skilton.

  • Breach of contract: Ambiguously worded provision of contract did not exclude right to pay in lieu of notice

    Date:
    1 October 1999
    Type:
    Law reports

    A clause in a contract of employment providing that the employee could be dismissed with immediate effect, if he failed to achieve his performance target was ambiguous, holds the EAT in T & K Home Improvements Ltd v Skilton, and did not of itself exclude the employee's right to pay for the contractual notice period.

  • Breach of contract: Employer was liable to make payment in lieu of notice without deduction for mitigation

    Date:
    15 September 1999
    Type:
    Law reports

    A provision of a contract of employment, which entitled the employer to terminate the contract either by giving the employee notice or summarily on paying him in lieu of notice, did not give the employer a third option of giving no notice and making no, or less than full, payment, holds the EAT in Cerberus Software Ltd v Rowley.

  • Tax on termination: Contractual pay in lieu of notice liable to income tax

    Date:
    15 October 1998
    Type:
    Law reports

    In EMI Group Electronics Ltd v Coldicott (HM Inspector of Taxes), the High Court rules that a payment in lieu of notice paid under an express contractual provision is an emolument "from" the employment, and therefore liable to income tax in full under Schedule E.

  • Contracts of employment: No right to pay in lieu of notice after frustration

    Date:
    1 September 1998
    Type:
    Law reports

    An employee's contract was frustrated when injury made him unable to work again for his employer and, as the contract ended by operation of law rather than by the employer's termination, the employee was not entitled to payment in lieu of notice, holds the EAT in G F Sharp & Co Ltd v McMillan.

  • Wrongful dismissal: No entitlement to damages for loss of right to claim unfair dismissal

    Date:
    15 April 1998
    Type:
    Law reports

    A wrongfully dismissed employee could not claim damages for loss of the right to claim compensation for unfair dismissal, which he would have acquired had he been given due notice, where the employer had a right under the contract of employment to make a payment in lieu of notice, holds the Court of Session in Morran v Glasgow Council of Tenants Associations and others.

  • Insolvency: Notice pay on insolvency reduced by mitigation

    Date:
    1 January 1996
    Type:
    Law reports

    In Secretary of State for Employment v Thompson, an employee whose employment ended without notice on his employer's insolvency was entitled to notice pay from the national insurance fund, but was under a duty to mitigate his loss.

  • Contracts of employment: Contractual entitlement to payment in lieu of notice

    Date:
    1 September 1995
    Type:
    Law reports

    In Abrahams v The Performing Right Society Ltd, it is held that there is no duty to mitigate where an employment contract provides for termination on payment of a sum in lieu of notice.