• Welcome to the LegalBeagles Consumer and Legal Forum.
    Please Register to get the most out of the forum. Registration is free and only needs a username and email address.
    REGISTER
    Please do not post your full name, reference numbers or any identifiable details on the forum.
  • If you need direct help with your employment issue you can contact us at admin@legalbeaglesgroup.com for further assistance. This will give you access to “off-forum” support on a one-to- one basis from an experienced employment law expert for which we would welcome that you make a donation to help towards their time spent assisting on your matter. You can do this by clicking on the donate button in the box below.

Employment contract query - summary termination

Collapse
Loading...
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • Employment contract query - summary termination

    Hi there, hopefully someone here can help me with what I hope is a relatively simple question.

    I have received a contract of employment to sign which contains the following clause:
    Notwithstanding clause 2 [which details the notice periods due from either party], the Company may, in its sole and absolute discretion, terminate the Appointment at any time and with immediate effect by notifying the Employee that the Company is exercising its right under this clause 12 and that it will make within 28 days a payment in lieu of notice (Payment in Lieu), or the first instalment of any Payment in Lieu, to the Employee. This Payment in Lieu will be equal to the basic salary (as at the date of termination) which the Employee would have been entitled to receive under this agreement during the notice period referred to at clause 2 (or, if notice has already been given, during the remainder of the notice period) less income tax and National Insurance contributions.

    The company is foreign-owned and the contract contained a number of other clauses which were not in fact legal under UK law (e.g termination without notice or payment of notice if off sick for more than 4 weeks in total in any 52 week period), so my question is whether the company are permitted to grant themselves this right? All information I can find indicates that to terminate an employee without notice there must be some justification to do so e.g misconduct, but I don't know whether the provision to pay in lieu of notice makes this OK.

    Any guidance will be much appreciated.

    Thanks
    Last edited by teotwin; 22nd January 2015, 10:58:AM. Reason: typo
    Tags: None

  • #2
    Re: Employment contract query - summary termination

    Hi and welcome to LB.

    PILON (payment in lieu of notice) is perfectly legal in UK.
    Here's ACAS notes about it: http://www.acas.org.uk/index.aspx?articleid=4540

    Comment


    • #3
      Re: Employment contract query - summary termination

      Hi des8 and thanks for the response

      I understand that PILON is legal but can an employer terminate a contract entirely and arbitrarily at their discretion, without any reason at all?

      Thanks

      Comment


      • #4
        Re: Employment contract query - summary termination

        Basically "no".
        If you have been employed over 2 years, your employer needs a valid reason
        https://www.gov.uk/dismissal/overview

        Comment

        View our Terms and Conditions

        LegalBeagles Group uses cookies to enhance your browsing experience and to create a secure and effective website. By using this website, you are consenting to such use.To find out more and learn how to manage cookies please read our Cookie and Privacy Policy.

        If you would like to opt in, or out, of receiving news and marketing from LegalBeagles Group Ltd you can amend your settings at any time here.


        If you would like to cancel your registration please Contact Us. We will delete your user details on request, however, any previously posted user content will remain on the site with your username removed and 'Guest' inserted.

        Announcement

        Collapse

        Welcome to LegalBeagles


        Donate with PayPal button

        LegalBeagles is a free forum, founded in May 2007, providing legal guidance and support to consumers and SME's across a range of legal areas.

        See more
        See less

        Court Claim ?

        Guides and Letters
        Loading...



        Search and Compare fixed fee legal services and find a solicitor near you.

        Find a Law Firm


        Working...
        X