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Ben Jones
Ben Jones, UK Lawyer
Category: Employment Law
Satisfied Customers: 47866
Experience:  Qualified Employment Solicitor - Please start your question with 'For Ben Jones'
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My contract is to provide a service and termination is by either

Resolved Question:

My contract is to provide a service and termination is by either side subject to 3 months written notice . I have held this contract for 15 years .
A new manager terminated the contract without notice and awarded it to someone else .
It was agreed to give me 3 months pay in lieu of notice .
When should that payment be made and how binding is it ?
ie - immediately on termination , monthly for 3 months , at the end of 3 months ?
Submitted: 2 years ago.
Category: Employment Law
Expert:  Ben Jones replied 2 years ago.
Ben Jones : Hello, my name is ***** ***** it is my pleasure to assist you with your question today. I presume the contract does my mention anything about when payment must be made on termination?
Customer:

No it doesn't but an experienced friend of mine says when he has paid notice in lieu for immediate termination then the cheque is handed over at the time of termination .

Ben Jones :

yes that is usually the case. When a contract is terminated in lieu of notice it means that it comes to an end immediately and you are compensated for the notice period you would have usually been expected to serve. As the contract has already terminated on the spot any payments under it become due immediately and certainly no later than the next pay date that may be agreed under the contract. Unless the contract specifically mentions that payment can be made later than that, these are the rules that would apply

Customer:

When this contract is terminated I am already owed payments for the last 3 months

Customer:

When this contract was terminated I was already owed 3 months fees for July / Aug / Sep.

Customer:

The 3 months notice in lieu is for Oct / Nov / Dec .

Customer:

If I am immediately entitled to the 3 months Oct / Nov / Dec paid in lieu am I also entitled to the overdue payments for July / Aug / Sep at the same time or will I have to accept waiting longer for them ?

Customer:

Can you provide me with a copy of the question and the correspondence because the original question seems to have been lost to the screen ?

Ben Jones :

when would you usually have been paid for the time already worked?

Customer:

The invoices say within one month from receipt of invoice.Should

Customer:

Should I provide separate invoices for the payment in lieu and state that payment is due NOW

Ben Jones :

ok so the pay for the last 3 months would be payable as per the terms, so within a month of invoicing. The notice period would normally be invoiced as it is not work you have actually done and should become payable immediately on termination of the contract

Ben Jones :

Hope this clarifies your position? If you could please let me know that would be great, thank you

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