Can this contractual term be enforced?

[PugwasHDJ80]

Hi All,

My wife has been with her employer for 5 years now at a mid-senior level. She's just been offered a very attractive pay rise (20%) or so, but also asked to sign a new contract.

I've ben working through the contract with er (comparing to the old one) and most of the changes are ok, expect for one.

it says:

"..the company may, in its sole discretion, terminate the Appointment at any time and immediate effect by notifying the employee that the company will make a payment in lieu of notice" followed by a lot more gumph which i won't type out here.

my understanding was that a company had to have a reason to dismiss an employee who had been employed for longer than two years? can my wife give away her rights by agreeing to this notice

I'm a bit stumped even after a lot of googling- so any thoughts would be much appreciated.

[FWIW]

Payment equivalent to 12 months notice?

[PugwasHDJ80]

3 months notice- standard notice period.

[edc]

Valid reason or not the company is trying to have a contractual right to pay PILON. The alternative position if they want her out immediately without working notice would be a breach of contract.

[southendpier]

Doesn't that mean they will not require her to work a notice period if they terminate?

[PugwasHDJ80]

I'm interpreting this as "we have the right to terminate your emplyment whenever we feel like it without any reason at all"

have i misunderstood?