Marshall (Cambridge) Ltd v Hamblin EAT/705/91

Dismissal: Payment in lieu cuts short notice period

Date:

1 June 1994

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.