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a) Sadly no. Caselaw dictates that where an employer brings employment to an end in this manner the EDT is the date upon which the employment ends. So if there is no PILON your friend does not have adequate service.
b) Again there has been caselaw on this and there is no way of extending the employment to bring the service to 2 years.
If your friend is put on a costs warning I would advise him not to pursue it. If any offer is made on an economic basis it should be accepted.
I am really sorry that I cannot be more positive on this. I agree that on the face of it it is extremely unfair but the legal position on this is very clear indeed.
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Yes that's right. The claim he is trying to bring is constructive dismissal. He needs 2 years service to bring the claim.
If they employer does not want him to work the notice and pays him in lieu (in breach of contract) then the last day he works is the Effective Date of Termination. If the contract allowed for the payment in lieu then the Effective Date of termination is the end of the contract period. The employer has effectively stitched him up but there is no remedy as the Tribunal will not extend or construe the contract as having a clause which is not there in these circumstances. The fact that he was willing to work notice makes no difference to the situation.
In the case you site the employer confirmed the EDT was the end of the notice period. I do not believe that this has happened here. If the employer has written to the employee to say that they acknowledge the EDT is the end of the notice period but they will pay him in lieu then the position, will of course, be different.
I am sorry this is not the answer you want. I would be grateful if you would positively rate my answer as I am not otherwise credited for my time.