Payment in lieu

An employment contract often provides that an employer may pay the employee payment in lieu of working the notice period. Where this is not included in the contract, the parties can agree between themselves to have the employee paid in lieu of working. However, an employer should not force an employee to leave without serving the notice period, as the Courts would generally find this unjust. Some employees choose to work the notice period because they feel it looks better to be seeking other employment whilst in employed.

Where an employer fails to give the appropriate notice period, the employee may bring a claim under the Employment Relations Act (2000), claiming unjustified dismissal.

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