Employment Briefing - January 2011.

Mondaq Business BriefingNbr. 2011, January 2011

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Employment Briefing - January 2011.

Pay In Lieu Of Notice Did Not Include Guaranteed Bonus

The Court of Appeal in Locke v Candy & Candy Ltd considered whether a clause providing that an employee had to be employed to receive a guaranteed bonus was sufficient to exclude that employee's right to compensation for that bonus when he was summarily dismissed.

Mr Locke was employed by Candy & Candy Ltd as a development director. Under the terms of his contract Mr Locke was entitled to a salary of [pounds]200,000, a guaranteed bonus of [pounds]40,000 after six months' employment and a further guaranteed bonus of [pounds]160,000 gross after 12 months' employment. Clause 4.2 provided 'You must be emplo...

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