When an employer has an obligation to provide a certain amount of notice, but wants to end the employment immediately, a company may be able to issue wages in lieu of notice. For example, if the company is required to give you two weeks notice, but wants to end your employment immediately, they may offer to compensate you for two weeks of salary and benefits (to make up for what you would have been paid if you’d been given the right amount of notice). Basically you’d get paid like you were working during the notice period, without working during that time. Whether they’re required to give you notice depends on the laws where you live, and the terms set out in your employment agreement.
Reading over your employment agreement is a good place to start to learn more about the company’s policies for terminating employment.
For more help with issues relating to your employer, visit our Labor and Employment Center.
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