A notice period is the amount of time between an employee or employer giving notice to end employment and the final employment date. It gives both sides time to prepare for the employment ending.
Statutory notice period
Statutory notice is the legal minimum notice. If an employer is ending employment, the minimum depends on the employee’s length of service.
Minimum employer notice after at least one month of service.
One week per year for each complete year of service.
Maximum statutory minimum employer notice.
| Length of employment | Minimum employer notice | Simple meaning |
|---|---|---|
| Less than 1 month | No statutory minimum | Contract terms may still apply. |
| 1 month to less than 2 years | At least 1 week | Minimum statutory employer notice. |
| 2 years to less than 12 years | 1 week for each full year | For example, 5 years usually means 5 weeks. |
| 12 years or more | 12 weeks | Maximum statutory minimum employer notice. |
Employee notice when resigning
When an employee resigns, they must usually give at least one week’s notice if they have been in the job for more than one month. The contract may require more notice.
It is usually safest to give notice in writing, even if verbal notice would be accepted, because written notice creates a clear record of the date notice was given.
Tip: notice usually runs from the start of the day after notice is given, unless the contract says otherwise.
Contractual notice period
Contractual notice is the notice period written into the employment contract, offer letter, staff handbook or workplace agreement. It can be longer than the statutory minimum.
If the contract gives a longer notice period, the contractual notice usually applies. An employer cannot give less than the statutory minimum where statutory notice applies.
Statutory notice
The legal minimum notice required by law.
Contractual notice
The notice period agreed in the employment contract or workplace terms.
Payment in lieu of notice
Payment in lieu of notice, often shortened to PILON, means employment ends without the person working the notice period, and they are paid instead.
PILON can be allowed by the contract or agreed as part of the leaving arrangement. Notice pay and PILON can have tax and National Insurance treatment, so it is important to check the final payslip.
If someone has a 4-week notice period but the employer ends employment immediately and pays 4 weeks’ basic pay instead, that is a payment in lieu of notice.
Garden leave
Garden leave, also called garden leave, means the employee remains employed during the notice period but is told not to work or not to attend the workplace. They are usually still paid during this time.
Worked notice
The employee continues working during the notice period.
Garden leave
The employee stays employed and paid but does not work during notice.
Notice period and final pay
Final pay can include salary up to the leaving date, notice pay or PILON, unused holiday pay, bonuses, expenses, redundancy pay and deductions.
Notice pay is usually treated differently from statutory redundancy pay. Statutory redundancy pay under £30,000 is not taxable, but notice pay or PILON is generally taxable as employment income.
Check leaving-pay items
Read the guide covering notice pay, redundancy pay, holiday pay and final payslip checks.
How to work out the leaving date
The leaving date depends on when notice starts, the length of notice, and whether notice is counted in calendar days, weeks or months. Your contract may explain how dates are counted.
If notice is given on Monday and the notice period starts the next day, a one-week notice period may end the following Monday, depending on contract wording and employer practice.
Calculate a notice date
Use the notice period calculator to estimate likely leaving dates from notice length and start date.
Notice period and redundancy
In redundancy, notice period is separate from statutory redundancy pay. An employee may receive notice, notice pay or PILON as well as redundancy pay if they qualify.
Redundancy payments, notice payments, holiday pay and final salary can all appear around the same time, but they are not all taxed or calculated in the same way.
Why notice period matters
Notice period matters because it affects leaving dates, final pay, redundancy planning, handovers, references, start dates for a new job and whether either side is breaching the employment contract.
- Leaving date: notice controls when employment normally ends.
- Final pay: notice pay, PILON and holiday pay can affect the final payslip.
- New job timing: notice period affects when you can start elsewhere.
- Redundancy: notice is separate from statutory redundancy pay.
- Contract risk: giving too little notice may breach the contract.
Calculate notice period
The notice period calculator estimates a likely leaving date from the date notice is given, notice length and whether the period is measured in days, weeks or months.
Estimate your leaving date
Use notice date, notice length and contract wording to estimate the final date.
Notice period FAQs
What is a notice period?
It is the time between notice being given to end employment and the employment ending.
What is the minimum notice an employer must give?
For employees with at least one month of service, statutory employer notice is at least one week, then generally 1 week per year for each full year from 2 to 12 years, capped at 12 weeks.
What notice must an employee give when resigning?
An employee must usually give at least one week’s notice if they have been employed for more than one month, unless the contract requires more.
Is payment in lieu of notice taxable?
Notice pay or payment in lieu of notice is generally treated as employment income and can have tax and National Insurance deducted.