Notice Period Clause in UK Contracts: What It Means & Example Wording

When to Include a Notice Period Clause

• In every employment contract — it is a legal requirement to state the notice period in the written statement of particulars
• In ongoing service agreements and retainer contracts where the supplier needs time to reallocate resources
• In any contract involving ongoing obligations where abrupt termination would cause disruption or financial loss

Example Wording

This example wording is illustrative only. Customise it to your specific circumstances and consider seeking legal advice.

Is a Notice Period Clause Enforceable in the UK?

Notice period clauses are enforceable in the UK, subject to the statutory minimum under section 86 of the Employment Rights Act 1996: one week's notice after one month of service, then one week per year of continuous employment up to a maximum of 12 weeks. Contractual notice periods that exceed the statutory minimum are valid and binding. If an employee leaves without serving their notice, the employer can theoretically claim damages for breach of contract, though in practice this is rarely pursued except for senior roles.

Common Mistakes

• Setting a contractual notice period below the statutory minimum — the statutory minimum will override the contractual term automatically
• Failing to differentiate between the notice the employer must give and the notice the employee must give — these can be different
• Not specifying that notice must be in writing — oral notice can create disputes about when the notice period started