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What is Payment in Lieu of Notice?

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Tech companies who hire global employees will undoubtedly have to terminate employees from time to time – and payment in lieu of notice is a viable alternative to the standard two-week notice period that many companies employ. TRUSS provides global tech companies with an innovative platform to hire, pay, and manage talent in Central Asia and that means answering your questions about all aspects of the employment process.

Employers who have questions about terminating employees may be asking – what is payment in lieu of notice? We can help answer your questions at TRUSS and when you choose to expand your global workforce, we can help you find, recruit, hire, and manage tech talent in Central Asian countries that include – Uzbekistan, Kazakhstan, and Georgia.

Contact TRUSS today to learn more about our products and prices!


READ MORE: Best Regions to Build Your Global Remote Team


How Does Payment in Lieu of Notice Work?

In a traditional employment setting, a notice period is provided to most employees when their employment is terminated by the company. The notice period is a period of time included in the contract that an employee is required to work when their employment is terminated or they resign. The notice period may vary based on where an employee lives and works.

Salary and Employee Binders and Documents on a Desk

The notice period in Uzbekistan is two months when the reason for termination is redundancy and two weeks when there is a lack of qualification or inability to perform necessary tasks. Kazakhstan employees who are terminated due to downsizing must be given a one month notice period – with no notice required when the cause is performance based and may include severance pay. Employees in Georgia expect a notice period of 30 calendar days with written notice.

Payment in lieu of notice is an alternative to the notice period where an employee is terminated immediately and paid their equivalent wages for the selected period of time – rather than working. To be valid in most countries, payment in lieu of notice must be included in the employee’s contract and will include specific terms for payment. Payment in lieu of notice can be calculated with some simple math – multiply the salary by the number of days, weeks, or months of the notice period.

Example: ($45,000 Annual Salary/ 52 Weeks) x 4 Weeks Notice Period = $3,461.52


READ MORE: Best Ways to Hire Global Remote Talent 


Why Do Companies Use Payment in Lieu of Notice?

U.S.-based tech companies who have to terminate employees may be considering payment in lieu of notice and many may be asking – why should we use payment in lieu of notice? The primary reason to use payment in lieu of notice is to avoid any issues with disgruntled employees who have been terminated. Here is a better look at scenarios where payment in lieu of notice may be a better option for your tech company.

  • You do not want a terminated employee to have continued access to corporate systems and information.
  • The employee requested to leave the company and start their search for a new position rather than work the notice period.
  • You are concerned that the employee may disrupt the rest of your workforce.
  • You are concerned that the employee will not continue to meet the expectations of their position during the notice period.

READ MORE: How To Grow Your Team in a Recession


How Can TRUSS Help with Global Employees?

Are you looking to expand your team and add global talent? Are you unsure of where to start? TRUSS provides a global platform that is dedicated to helping tech companies find the right people for their teams in Central Asia – which is an emerging market. TRUSS has a global team that can help you find, recruit, hire, and manage tech employees in Uzbekistan, Kazakhstan, Georgia, and additional countries in the region. TRUSS has the capabilities to function as your employer of record in Central Asia and will help you ensure that your company is compliant with the local labor laws.

Contact TRUSS today to get answers to questions like – what is payment in lieu of notice – and we will help you build a global team!

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