A director was made redundant without being given his contractual 12 months notice. The employer wanted to pay the employee money in lieu of this notice. It was held that the employer was in breach of contract as there was no contractual PILON term and such a term could not be implied.

The Court could see no reason why such a term should be implied as it was not necessary to give business efficacy to the contract. Such an implied term would also be incompatible with the express clause providing for 12 months notice. Morrish v NTL Group