What if they are paid in lieu of notice?

Whether an individual is entitled to receive a full or partial bonus as part of a payment in lieu of notice (PILON) will normally come down to the drafting of the PILON clause and/or the bonus terms. If a PILON states that the employee will be paid basic salary only in lieu of notice then the bonus would not ordinarily be included. The PILON clause also brings the termination date forward and can therefore prevent an employee continuing in employment past the bonus payment date.

If the individual does not have a PILON clause in their contract then it would be a technical breach of contract for an employer to make a PILON payment. ‘Damages’ for that breach are designed to put the individual in the position they would otherwise have been in if the contract had been performed (arguably, including the bonus payment).