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Law: Payment in lieu of notice (PILON)

A recent case (Morrish v NTL Group) has confirmed that if you want the option to give payment in lieu of notice when someone’s contract is terminated then you must include that option in the written contract.

It is never an implied term.

Most employees would not find issue but it could have a bearing if an employee with access to sensitive information (e.g. customer lists) wanted to stay on to maliciously pass on such information. Equally a belligerent employee may simply want to stay on just to generally cause trouble and unrest.

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