in lieu of

Meaning

This formal prepositional phrase means 'instead of' or 'in place of.' It is frequently used in legal, financial, and HR contexts when one thing is being substituted for another, such as receiving extra time off instead of overtime pay.

Examples

• The company offered stock options in lieu of a cash bonus this quarter.

  The company offered stock options in lieu of a cash bonus this quarter.

• We accepted a credit voucher in lieu of a full refund for the cancelled flight.

  We accepted a credit voucher in lieu of a full refund for the cancelled flight.

• She was granted five days of compensatory leave in lieu of overtime pay.

  She was granted five days of compensatory leave in lieu of overtime pay.

• In lieu of a formal presentation, we will host an open Q&A session.

  In lieu of a formal presentation, we will host an open Q&A session.

• The board decided to issue new shares in lieu of distributing dividends.

  The board decided to issue new shares in lieu of distributing dividends.

Common Mistakes

• ✗ We received a bonus in lieu for our hard work.

  ✓ We received a bonus in lieu of our overtime pay.

  Learners often confuse 'in lieu of' with 'in return for.' 'In lieu of' means substitution (instead of), not reward. Also, the preposition is always 'of', never 'for'.

• ✗ They decided to cancel the project in lieu of starting a new one.

  ✓ They decided to cancel the project instead of starting a new one.

  While 'in lieu of' means 'instead of', it is typically used for exchanging equivalent items or options (like cash vs. stock), rather than choosing one action over another.

Related Expressions

Practice

• The client agreed to accept a digital copy ___ a printed manuscript.

  💡 instead of

  Show answer

  in lieu of

• Employees can take compensatory time off ___ payment for extra hours worked.

  💡 in place of

  Show answer

  in lieu of