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Great Restaurants Ltd v Mizener - Payment in lieu was not "appropriated" to redundancy payment, which was therefore still owing [2009] EAT

If an employer does not, at the time, appropriate or ascribe a payment made to either wages or redundancy entitlement, it cannot defeat a claim for redundancy pay by later arguing that its earlier payment, accepted by the employee as wages, was in fact for redundancy.

Mr Mizener was made redundant when the restaurant he worked at was closed. He was contractually entitled to four weeks' notice (whereby his employment should be continued for four weeks or he should receive pay in lieu), as well as statutory redundancy pay of £990. Great Restaurants made proposals to Mr Mizener (which he accepted) that seemed to amount to maintaining his employment for the four weeks (although he would not have to actually work) but not paying the redundancy payment. Mr Mizener was subsequently paid £781.50 - as he understood it the balance due of his wages.

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