Interpreting Termination Clauses

This paper, from the recent IRS/Blackstone Chambers Conference, considers the High Courts' approach to termination clauses in contracts of employment. Three related issues are discussed: the future of pay in lieu of notice ("PILON") clauses after the case of Cerberus v Rowley; whether a termination clause providing for the payment of a lump sum in case of breach may be held to be invalid as a penalty clause; and the extent to which the Unfair Contract Terms Act ("UCTA") applies to termination clauses in employment contracts.

• This paper, from the recent IRS/Blackstone Chambers Conference, considers the High Courts' approach to termination clauses in contracts of employment. Three related issues are discussed: the future of pay in lieu of notice ("PILON") clauses after the case