The employer’s obligation to use clear language

Where a contract gives the employer the right to make a payment in lieu of notice, there is an implied duty to tell the employee clearly and unambiguously that the right to exercise a PILON is being exercised, and when the contract will end (Societe Generale v Geys [2012] UKSC 63. See also Publicis Consultants UK Limited v O’Farrell [2011] UKEAT/0430/10/DM).

Unless the contract contains an express term saying something different, a contractual payment in lieu of notice should include all the pay and benefits the employee would have earned if allowed to work during the notice period, including, for example, employer pension contributions.