Dismissal with Notice

Dismissal with Notice period

The employer must give the employee notice before dismissing. It is a formal procedure that permits both parties to prepare for the departure of the employee. In such circumstances, the employer normally delivers a written notice stating the termination date as well as the length of notice necessary by law or as stipulated in the employment contract. This notice time varies based on the employee's length of employment

Statutory Notice Period

The contract of employment will usually dictate the period of notice which must be given (e.g. one month) and the form it should take (e.g. in writing).  The period of notice given by the employer cannot be less than the statutory minimum stated in s.86 ERA but can be more.

Contractual Notice Period

Look for a notice period in your contract. Even though you are not entitled to statutory notice, you may get this. For example, your contract may provide that everyone must give at least four weeks' notice. This is known as contractual notice. If it is longer than the statutory notice period, you will be given contractual notice. If your statutory notice is greater or equal in length, you will get statutory notice instead.

PILON

A payment in lieu of notice (‘PILON’) clause in the contract will give the employer the right to terminate immediately (without giving the employee the required notice of termination) and pay the employee for the unexpired notice period.  If there is no express PILON clause the employer will be in breach of contract if he pays in lieu without the consent of the employee. This can have potentially disastrous consequences for the employer since it is likely that it will no longer be able to rely upon any restrictive covenants in the contract (General Billposting Co Ltd v Atkinson [1909] AC 118).