Common use of Payment instead of notice Clause in Contracts

Payment instead of notice. The amount of the payment instead of notice must equal or exceed the total of all amounts that, if the employee’s employment had continued until the end of the required period of notice, the employer would have become liable to pay the employee because of the employment continuing during that period. The amount must be worked out on the basis of: a) the employee’s current ordinary hours of work (even if they are not standard hours); b) the amount payable to the employee in respect of those hours, including, for example, allowances, loadings and penalties; and c) any other amounts payable under the employee’s contract of employment.