UK Employment Alert No 206: How to Terminate Employment and Exercise a Payment in Lieu of Notice Clause

By on February 12, 2013
Posted In Employment

by Sharon Tan and Paul McGrath

The UK Supreme Court has provided guidance about two issues of importance for employers wishing to dismiss a UK employee: 

What happens when an employer dismisses an employee in a manner that breaches the terms of the employee’s employment contract?  Is the employment relationship immediately brought to an end despite the employer’s breach, or does it continue?

If an employer wishes to rely on a payment in lieu of notice (PILON) clause, is it enough simply to make the payment of money required by the PILON clause, or is something more required?

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