Not been paid in Lieu of notice

[tele1971]

Hi guys,

New here. I resigned from my job before the end of my probationary period, I gave a weeks notice and was told to leave. I've not been paid in Lieu of notice 1 Week (PILON). The MD of the company has sent me this line of the contract, citing it as a reason he didn't pay. Is this legal? Do I have grounds to take it to the small claims court? Thanks in advance

4.2On resignation or dismissal you will be paid commission only with no guarantee.

[teaboy2]

Re: Not been paid in Lieu of notice

No its not legal and the term in the contract the MD referred you to is unlawful too on the grounds that if your dismissed by the employer they are then liable by law to pay you your notice period and any accrued holidays (not yet taken).

As the employer told you to leave instead of allowing you to work your notice, then they are in breach of contract for refusing to allow you to work your notice period and are therefore liable to pay you in lieu of your notice, as compensation for their breach of contract (this sum is not taxable since its a compensation for the employers breach of contract) - You were effectively summarily dismissed when the employer told you to leave instead of allowing you to work your notice period!

Refer the employer to section 86 of the employment rights act, and in form him that as he refused to allow you to work your notice and instead told you to leave he therefore dismissed you in breach of your contract, by denying you the right to work your notice period (effectively summary dismissal). As such he is liable to pay you in lieu of your notice, as this payment is a compensatory payment for his breach of contract, it is therefore not taxable. Also point out to him the clause he referred to in the contract is unlawful as if dismissed or refused to be allowed to work your notice on resignation the employer is legally liable to pay in lieu of notice but is also liable to pay accrued holidays and any other bonuses accrued too. Advise him he has 14 days in which to pay you otherwise you will take legal action via the county courts for breach of contract (as per section 86 employment rights act 1996) and unlawful deductions from wages as per section 13 of the employment rights act 1996 - Point out to him the law takes precedence over any contractual term he thinks he can hide behind!!

[matt3942]

Re: Not been paid in Lieu of notice

Teaboy is absolutely right - assuming you haven't omitted any potentially mitigating information you are entitled to receive payment in lieu of notice, and payment for any accrued and unused holidays up to your effective termination date.

- Matt