Statutory Notice Periods
The Employment Rights Act 1996 sets out minimum notice periods that apply to all employees in the UK:
Employer to Employee
| Length of Service | Minimum Notice |
|---|---|
| 1 month to 2 years | 1 week |
| 2 to 3 years | 2 weeks |
| 3 to 4 years | 3 weeks |
| 4 to 5 years | 4 weeks |
| 12+ years | 12 weeks (maximum) |
The rule is simple: one week per complete year of service, up to a maximum of 12 weeks after 12 years.
Employee to Employer
The statutory minimum notice from an employee to their employer is one week after one month of service, regardless of how long they have worked there.
However, the employment contract may specify a longer notice period (e.g. one month, three months), which takes precedence if it exceeds the statutory minimum.
Contractual Notice Periods
Most employment contracts specify notice periods that exceed the statutory minimum. Common contractual notice periods:
| Role Level | Typical Contractual Notice |
|---|---|
| Junior / entry-level | 1 month |
| Mid-level | 1-3 months |
| Senior / management | 3-6 months |
| Director / C-suite | 6-12 months |
The longer of statutory or contractual notice applies.
During Probation
Many employment contracts specify a shorter notice period during the probationary period, often one week. Once probation is completed, the full contractual notice applies. However:
- Statutory notice (1 week after 1 month of service) still applies during probation
- A probationary notice period cannot be less than the statutory minimum
Payment in Lieu of Notice (PILON)
Instead of requiring the employee to work their notice, the employer can make a Payment in Lieu of Notice:
- With a PILON clause: If the contract includes a PILON clause, the employer can terminate immediately and pay the notice period as a lump sum. This does not constitute a breach of contract.
- Without a PILON clause: If there is no PILON clause, paying in lieu is technically a breach of contract. This can have implications for restrictive covenants.
Tax Treatment of PILON
PILON payments are subject to income tax and NICs in full, whether or not the contract includes a PILON clause.
Garden Leave During Notice
An alternative to PILON is garden leave, where the employee remains employed and on full pay but does not attend work.
Notice During Sick Leave
Notice can be given and served while an employee is on sick leave:
- The employer can give notice to a sick employee
- The employee can resign while on sick leave
- SSP continues during the notice period if the employee is still sick
- If the employee's notice period coincides with SSP entitlement, they receive their normal notice pay (not just SSP) unless the contract says otherwise
Dismissal Without Notice (Summary Dismissal)
An employer can dismiss without notice only in cases of gross misconduct. This must:
- Follow a fair disciplinary process (ACAS Code)
- Be based on a genuine finding of gross misconduct after investigation
- Be a reasonable response
Examples: theft, fraud, violence, serious health and safety breaches.
Wrongful Dismissal
If an employer fails to give the correct notice (and it is not a case of gross misconduct), the employee can claim wrongful dismissal. The claim is for the pay and benefits they would have received during the notice period.
Wrongful dismissal is a contractual claim and can be brought in the employment tribunal (for claims up to £25,000) or the county court (for larger claims).
How Grove HR Helps
Grove HR automatically calculates the correct statutory notice period based on each employee's start date and continuous service, tracks contractual notice periods from the employment contract, manages notice periods for leavers with automatic payroll adjustments, and handles PILON calculations including tax treatment.
Frequently Asked Questions
Can I give more notice than my contract requires?
You can offer more notice than the contractual minimum, but the employer is not obliged to accept more than the contractual period. In practice, most employers will agree to a longer notice period if it suits both parties, but they can insist the employee leaves at the end of the contractual notice.
What if my contract does not mention a notice period?
If the contract is silent on notice, the statutory minimum applies. Additionally, the courts may imply a 'reasonable' notice period based on the nature of the role, seniority, and industry custom. For senior roles, this can be longer than the statutory minimum.
Can an employer change the notice period in my contract?
Not unilaterally. A notice period is a contractual term and can only be changed with the employee's agreement. Any change should be confirmed in writing as an amendment to the employment contract.