What is the difference between “consent” and “acceptance” of payment in lieu of notice in UK employment law?

Question from InC, What is the difference between “consent” and “acceptance” of payment in lieu of notice in UK employment law?

Answer from AI:

In UK employment law, the terms “consent” and “acceptance” have distinct meanings, particularly in the context of payment in lieu of notice (PILON). PILON is a payment made to an employee when their employment is terminated without the required notice.

Consent vs Acceptance

Consent generally refers to an agreement made in advance. In the context of PILON, an employee might give their consent to receive such a payment in their employment contract. This means that the employee has agreed, at the time of signing the contract, to accept a payment in lieu of notice if their employment is terminated without the required notice.

Acceptance, on the other hand, typically refers to an agreement made at the time of the event. In the context of PILON, an employee might accept a payment in lieu of notice at the time their employment is terminated. This means that the employee has agreed, at the time of termination, to accept a payment instead of the required notice.

Relevant Court Decisions

In the case of Abrahall v Nottingham City Council, the Court of Appeal held that the employees’ acceptance of reduced pay did not necessarily mean they had consented to a variation of their contracts. This case illustrates the difference between acceptance (taking the reduced pay) and consent (agreeing to a change in the contract).

In the case of Société Générale, London Branch v Geys, the Supreme Court held that an employer’s unilateral act of making a payment in lieu of notice did not terminate the employment contract until the employee accepted it. This case shows that acceptance can be a distinct act from the employer’s decision to make the payment.

Legal Advice

While these cases provide some guidance, the specific circumstances of each employment relationship can significantly impact the interpretation of “consent” and “acceptance”. Therefore, it is recommended that individuals consult with a legal professional for personalized advice.

Further Resources

For more information on this topic, you may wish to consult the Advisory, Conciliation and Arbitration Service (ACAS) or the UK Government’s guidance on employment contracts and conditions.