Pay in lieu of - SpentMT Posted: Jul 20th, 2018 - 6:36 am In Reply to: US page - SpentMT
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The term pay in lieu of notice refers to the compensation an employee receives when they are separated from the company without proper notice. To be entitled to pay in lieu of notice, there must be an employment contract, company policy, or statutory requirement that outlines the wages owed the employee before termination of employment.
Employers give workers one month or two month notice when they were being laid off or fired. (Employees also gave employers one month or two month notice when they quit.) However, some employers wanted to get rid of a worker more quickly, so they would give payment in lieu of two weeks notice. They paid the employee for the two weeks, but the employee left (was fired) immediately
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