# EXAMPLE: PAYMENT IN LIEU OF NOTICE LETTER
Date: 10 May 2028
From: Cedar North Ventures Limited
To: Priya Shah
## 1. Facts
From Cedar North Ventures Limited, 8 Station Yard, Leeds LS10 2AB, to Priya Shah, Finance Manager, dated 10 May 2028.
## 2. Decision
Following the capability hearing on 7 May, Cedar North terminates your employment for capability with immediate effect on 10 May 2028. The decision is not for gross misconduct and does not prevent an appeal.
## 3. Reasons
Your contract provides eight weeks' notice. We will make a payment in lieu of notice of £9,230 gross, calculated as eight weeks of basic salary of £60,000 plus the contractual car allowance of £1,200 annualised, subject to tax and National Insurance.
## 4. Process and rights
Final payroll will also include salary to 10 May, 6.25 days' accrued holiday less holiday taken and any authorised or lawful deduction. Benefits end on the dates stated by their provider; pension contributions are made on qualifying pay.
## 5. Records and continuing matters
Return the laptop, security token, keys and finance records by 15 May. Do not access company systems after 10 May or retain copies of budget, supplier or customer data; confidentiality and intellectual-property clauses continue.
## 6. Closing
You may appeal to an uninvolved director within five working days, setting out the ground and any evidence. You may be accompanied at the appeal, request a reasonable adjustment and obtain an itemised payment statement.
## 7. Acknowledgement
Please contact Payroll with queries by 17 May. The decision does not limit whistleblowing, discrimination, accrued-pay or tribunal rights, subject to applicable time limits. Yours sincerely, Harriet Cole, People Director: ____________________.