Payment in Lieu of Notice Is not Necessarily a Material Breach

It has long been the case that, unless there is a clause in a contract of employment giving an employer the right to make a payment in lieu of notice (PILON), any such payment will be a breach of contract by the employer, making all the terms of the contract unenforceable including post-termination restrictions.

However, a recent Scottish Employment Appeal Tribunal case held that paying an employee in lieu of notice, when there was no clause in the contract, was not serious enough to repudi... (84 more words)

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