I consider it necessary to say something about the phrase “in lieu of notice” which is liable to be misunderstood, in this connection. The phrase has been defined in the Concise Oxford Dictionary of English Language 4th Ed. page 687 as “in the place, instead of “. Black’s Law Dictionary, Sixth Ed. P.787, also defines the phrase as “instead of, in place of, in substitution of….Thus when the condition of termination of the contract of service is the giving of two months’ notice or the payment of two months’ salary in lieu of notice, it can only mean the payment of two months’ salary instead of, in place, in substitution of the giving of two months notice.
– Karibe-Whyte, JSC. Chukwumah v. SPDC (1993)