Notice Period

Statutory minimum notice periods under the Employment Rights Act 1996 are: 1 week after 1 month's service, then 1 week per complete year of continuous employment up to a maximum of 12 weeks. Employees must give at least 1 week's notice after 1 month of employment regardless of contract length. Employment contracts often provide longer 'contractual' notice — the higher of statutory or contractual notice applies. An employer may offer Pay in Lieu of Notice (PILON) instead of requiring the employee to work the notice period; PILON is taxable as income since April 2018. An employee on garden leave during notice retains all contractual entitlements. Failing to give proper notice is a breach of contract, meaning the other party can sue for the value of the notice period (less any mitigation). Notice periods can be extended by mutual agreement.

What it means in practice. Two figures always exist side by side: the statutory minimum, which cannot be reduced, and whatever your contract says. Whichever is longer wins for that party. During notice you remain an employee, so you continue to accrue holiday and pension, keep your benefits, and stay bound by confidentiality and any other continuing duties. Statutory notice is also protected in a particular way — if you are off sick or on maternity leave during a statutory notice period, you are generally entitled to full pay for it rather than the reduced rate you were actually receiving.

A worked example. Yusuf has worked somewhere for seven complete years. His contract says one month's notice from either side. Statute entitles him to one week per complete year, which is seven weeks, so the employer must give him the longer statutory period of seven weeks. His own obligation, however, is only the contractual one month, because statute requires just one week from an employee after a month's service and the contract sets a higher figure. The asymmetry is normal and often surprises people on both sides.

Common pitfalls. Employers routinely underpay by applying the contractual figure to themselves when statute gives more. Employees frequently misread pay in lieu of notice as a tax-free severance payment — since April 2018 it is taxable as earnings whether or not the contract provides for it. Walking out without notice is a breach that can be sued on, although in practice employers usually just deduct what is owed, which itself must be authorised by the contract to be lawful. And notice given verbally in a heated moment still counts, so put anything important in writing.

How it relates to other terms. Failing to give proper notice is the classic wrongful dismissal, distinct from unfair dismissal. Notice pay sits alongside statutory redundancy pay rather than being part of it. An employer who wants you away from the business but still bound by your contract will use garden leave, which usually runs alongside any restrictive covenants. Summary dismissal for gross misconduct is the one situation where no notice is required at all.

What to do next. Check both figures using our notice periods guide, then use final pay to make sure notice, holiday, and any commission are all in your last payslip. If you have been put on garden leave, read that guide before accepting any new role.