It is widely understood that an employment contract, unless otherwise agreed, cannot be immediately terminated simply due to a change of heart or perhaps a sudden desire to pack up and travel the world.
But what happens when either party could give say, three months' written notice to terminate the employment contract in the normal way, but the employer could elect to make a payment in lieu of notice ('a PILON') to terminate the employment contract immediately? In this article, Simon Hurry discusses whether this makes a termination effective?