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Ben Jones
Ben Jones, UK Lawyer
Category: Employment Law
Satisfied Customers: 49853
Experience:  Qualified Employment Solicitor - Please start your question with 'For Ben Jones'
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We have just terminated an employee who has worked with the

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We have just terminated an employee who has worked with the company for 15 months. Under the terms of their contract they have three months notice which we will pay in full although employee has left with immediate effect.
Two things. Employee had a car allowance which was included as a term of written contract. Do we have to honour that as employee will no longer use their car.
Secondly, employee has BUPA cover although this was NOT a term of written contract but added later as a perk. Do we have to pay the subscription for the 3 months?
Many thanks.
Ben Jones :

Hello, my name is ***** ***** it is my pleasure to assist you with your question today. How long did they have the BUPA cover for and does the contract say that you can pay the person in lieu of notice?

Customer: BUPA cover has been in place for 4 months.
Customer: I do not have contract of employment with me so not sure what it says about payment in lieu of notice. I think it might. Could you answer in the alternative? Apologies.
Ben Jones :

The car allowance would be payable during the notice period – the employee would either have to be given use of the car for that period or be paid the equivalent for their car allowance. The BUPAS cover has not really been in place for long enough for them to try and argue that it has become a contractual term so if you have a PILON clause then you do not have t pay it. However, if no PILON clause exists then technically you cannot dismiss them by paying them in lieu of notice and you may have to consider paying them the equivalent of the cover or at least allowing them to benefit from it for the notice period.

Customer: Many thanks for clarifying the position.
Ben Jones :

you are welcome, all the best

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