Employer allowed to do payment in lieu of notice period?

My company has received permission form UWV to terminate my contract for business economic reasons. They've sent me the termination letter with the end date of 31st of October instead of 30th of November, saying they are doing payment in lieu of the 1 month notice period.
I do not agree with this, I want them to observe the 1 month notice period.
My question is : are they allowed to do this if i don't agree? If they are not, can I take legal action against them?