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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:
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
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
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