Pay in lieu of notice is wages paid or payable by an employer to an employee when they are laid-off without notice. If an employer is required to give notice of a layoff or other separation from employment, you can be laid-off without notice if you are paid the amount of wages you would have earned if you had been given notice.
In order to receive pay in lieu of notice, there must be an employment agreement, a statutory requirement or company policy which requires that employees are given a definite period of notice before a layoff or separation.
Also Known As: wages in lieu of notice, payment in lieu of notice
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