The phrase "are in lieu of" is correct and usable in written English.
It is typically used to indicate that something is being substituted for something else.
Example: "The additional benefits provided by the company are in lieu of a salary increase this year."
Alternatives: "are instead of" or "are in place of".
The retention bonuses will be paid whether or not the merger goes through, and are in lieu of 2008 stock option grants.
If poetry for Hill is a "mode of moral life" ("charred prayers / spiralling godwards on intense thermals"), the evidence here lies more in design than example — the morals are in lieu of, not on behalf.
Activities of the Comptroller General of the United States under this section are in lieu of any audit of the financial transactions of a Government corporation that the Comptroller General is required to make under any other law.
Unfortunately, no one knows what they are". In lieu of two or three painless rules of restructuring yet to be discovered, I offer a dozen pretty good but sometimes painful rules that represent the best practices derived from the 17 companies that combined to form Lockheed Martin as well as from our studies of several other prominent corporations that faced upheavals in their markets.
It may be that some or all of the non-payroll workers are in reality employees and the payments made to their limited companies would be in lieu of salary, but we would not want to suggest that all payments to limited companies are in lieu of salary".
This is in lieu of hanging up the handset.
The money was in lieu of visiting me.
It is unclear whether those interviews were in lieu of testifying before the grand jury.
The stocking caps were in lieu of shaving the prisoner's heads.
Such assessment shall be in lieu of damages sustained by the Government because of such claim.
Looting a store may be in lieu of the traditional division of a big man's estate".
