Notice Period: How Much Notice You Must Give and Get

Your notice period is the time between one side ending the employment contract and the employment actually finishing. It applies whether you resign or your employer dismisses you, and it is one of the most common sources of dispute when a job ends.

This guide covers the legal minimums, how your contract changes them, what happens to pay and holiday during notice, and the options your employer has, such as garden leave or paying you off immediately.

The two layers: statutory and contractual notice

Every notice period has two possible sources:

• Statutory notice - the legal minimum set by section 86 of the Employment Rights Act 1996.
• Contractual notice - whatever your written contract or offer letter says.

You are entitled to whichever is longer. A contract can give you more than the statutory minimum, but never less. If your contract says one week but you have worked there for six years, you are still owed six weeks.

If your contract says nothing about notice, the law implies "reasonable" notice, which for senior or long-serving staff can be longer than the statutory minimum. For a full breakdown of the legal minimums, see our guide to the statutory notice period.

How much notice your employer must give you

Once you have worked for one month or more, the statutory minimum your employer must give is:

• 1 month to under 2 years: at least 1 week
• 2 years to under 12 years: 1 week for each complete year
• 12 years or more: 12 weeks (the cap)

Only complete years count. Someone with 5 years and 10 months of service gets 5 weeks, not 6.

How much notice you must give your employer

The statutory rule for employees is much lighter. After one month's service you only have to give one week, however long you have worked there. In practice most contracts ask for more, often one month, or three months for managers and senior roles. If your contract sets a longer period, you are bound by it.

Worked example

Priya has worked for a logistics firm for 8 years and 3 months. Her contract says either side must give one month's notice.

• If she resigns, she must give one month (the contractual term).
• If she is dismissed, her employer must give her 8 weeks - her statutory entitlement is longer than one month, so it wins.

Can you or your employer change the notice period?

Notice terms are part of your contract, so neither side can change them alone. If your employer wants to lengthen your notice, for example on promotion, they need your agreement, usually in a new contract or written variation. Read any new terms closely, because a longer notice period often arrives alongside new restrictive covenants.

When does notice start?

Notice usually starts the day after it is given. If you resign by email on a Monday, your notice normally starts on Tuesday. Verbal notice can be valid, but put it in writing so there is no argument over dates. If your contract sets out a particular method, such as written notice to HR, follow it.

Pay during your notice period

You should normally be paid your usual wages during notice, including any regular contractual benefits. Statutory protections also mean that if you are off sick, on holiday or on family leave during statutory notice, you may still be entitled to full pay in some situations, provided your contractual notice is less than one week longer than statutory notice.

Holiday keeps building up during notice. Any untaken holiday you have accrued must be paid when you leave; so check your final payslip carefully.

Garden leave

Your employer may tell you to stay away from work for some or all of your notice, while still paying you in full. This is garden leave. You remain an employee, so you are still bound by your duties of confidentiality and cannot start a new job until the notice ends. Employers generally need a garden leave clause in the contract to do this safely.

Pay in lieu of notice (PILON)

Instead of making you work your notice, your employer can end the employment straight away and pay you for the notice period. This is known as pay in lieu of notice. PILON is taxed like normal earnings, and if the contract has no PILON clause the payment may technically be damages for breach of contract. It is worth checking which applies, as it can affect restrictive covenants.

When no notice is needed

Notice can be cut short or skipped entirely in a few situations:

• Gross misconduct - an employer can dismiss without notice if you have committed a serious breach such as theft or violence.
• Mutual agreement - you and your employer can agree to waive or shorten notice. Get it in writing.
• Serious breach by your employer - if you resign in response to a fundamental breach, you may not need to work notice, and you may have a claim for constructive dismissal.

What if notice is not honoured?

If your employer dismisses you without the notice you are owed, that is "wrongful dismissal". You can claim the pay you would have earned during the notice period. Claims can go to an employment tribunal (usually within three months less one day, after Acas early conciliation) or to the civil courts.

If you walk out without giving notice, your employer could in theory sue for losses, but this is rare unless they had to pay much more to cover your role. A more common risk is losing a reference or a bonus that depends on being employed on a certain date.

Notice and restrictive covenants

Leaving a job is often when non-compete clauses start to matter. Long garden leave and a long non-compete together can keep you out of your industry for a long time, and courts will look at both when deciding whether a covenant is reasonable.

Notice and pregnancy

If you are pregnant and thinking about resigning or changing jobs, the timing of your notice can affect whether you get Statutory Maternity Pay or need to claim Maternity Allowance instead. Check this before you hand in your notice.

Get advice before you sign anything

Notice disputes are often settled as part of an exit package, especially for senior staff. If you have been offered a deal, our settlement agreement solicitors can check whether your notice pay is calculated properly.

If you are unsure what notice you are owed, or your employer has refused to pay it, we can connect you with a vetted employment solicitor. Get matched for free and find out where you stand.