GLOSSARY
Payment In Lieu Of Notice definition
/pe瑟m(蓹)nt/ /瑟n/ /lju藧,lu藧/ /蓲v,(蓹)v/ /藞n蓹蕣t瑟s/
What does Payment In Lieu Of Notice mean?
Payment In Lieu Of
notice (鈥楶ILON鈥) clauses give the employer the express right to make a payment instead of giving notice, allowing the
employee鈥檚 immediate termination and removal from the
workplace. In the absence of a contractual PILON, employees may remain in employment for the
notice period and be paid for it, and attempted summary dismissal will be ineffective unless the employee accepts that repudiation.
Express PILON clauses also preserve post-termination restrictive covenants. Even without a PILON clause, an employee may be willing to accept a non-contractual payment in lieu of notice to bring their employment to an early end.
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