Where a contract of employment gave the employee a right to six months notice but provided that the employer might pay salary in lieu, and the employee was wrongfully dismissed instantly, but found work within weeks, he was entitled to his full six months pay in lieu of notice, but had to give credit for the sums he earned during that time in reduction of his damages. The choice given to the employer to pay salary in lieu of notice was inconsistent with an unconditional obligation to pay the full sum.
courtcommentary.com Where (i) either party has right to terminate employment contract on six months’ notice and (ii) it is agreed employer ‘may make payment in lieu of notice to the employee’, then employer may elect whether or not to make payment in lieu of notice
Judges:
Lord Justice Ward Lord Justice Sedley and Lord Justice Jonathan Parker
Citations:
Times 20-Feb-2001, [2001] ICR 376, [2001] EWCA Civ 1210, [2001] EWCA Civ 78, [2001] EWCA Civ 497
Links:
Jurisdiction:
England and Wales
Citing:
Appeal from – Cerberus Software Ltd v Rowley EAT 29-Sep-1999
Where an employment contract allows the employer to dismiss without notice by the payment of salary in lieu of notice, the employer was bound by that contract and could not rely upon the employee’s duty of mitigation of damages and dismiss without . .
Cited by:
Cited – Langley and Another v Burso EAT 3-Mar-2006
The claimant had been dismissed shortly after becoming unable to work. She sought payment of her normal salary during the period of notice saying this was established good practice.
Held: ‘We are put in the invidious position of being bound by . .
Lists of cited by and citing cases may be incomplete.
Employment, Contract, Damages
Updated: 31 May 2022; Ref: scu.147502
