No Implied Term To Make PILON

In Morrish V NTL Group Limited (3^rd July 2007) the Inner House of the Scottish Court of Session (equivalent to the English Court of Appeal) has confirmed that there is no implied term in an employment contract to make a payment in lieu of notice (PILON).

Mr Morrish was dismissed without being given the 12 months’ written notice required by his employment contract. He claimed damages for breach of contract. His employer, NTL Group Limited, had offered him a payment of salary in lieu of notice which he rejected as he claimed the damages award would be bigger. NTL argued that there was an implied term giving it the right to terminate his contract by making a payment of a proportion of his salary and emoluments corresponding to the period of notice stipulated in the contract.