Definition
The amount of advance warning that an employer or employee must give before ending the employment relationship. Notice periods are set out in the employment contract and must meet statutory minimums based on the employee's length of service.
UK Context
Statutory minimum notice periods are set by the Employment Rights Act 1996: one week for employment of one month to two years, and one additional week per year of service thereafter, up to a maximum of 12 weeks. Contractual notice periods often exceed the statutory minimum.
Best Practices
- Clearly state notice periods in the employment contract, including any differences during probation
- Use a structured handover plan to ensure business continuity during the notice period
- Consider whether payment in lieu of notice is appropriate and ensure the contract allows for it
Frequently Asked Questions
What is the statutory minimum notice period?
After one month of employment, the statutory minimum is one week. After two years, it increases by one week for each completed year of service, up to a maximum of 12 weeks after 12 or more years.
Can an employer waive the notice period?
Yes, an employer can agree to waive the notice period or make a payment in lieu of notice if the contract allows. The employee can also request to leave earlier, but the employer is not obliged to agree.