How to Calculate Notice Periods
Calculate notice periods by checking the employment contract for contractual notice terms, then comparing with the statutory minimum: one week for each year of service up to a maximum of 12 weeks. The longer of contractual or statutory notice applies.
Last updated: February 2025
Step-by-Step Guide
Check the contractual notice period
Review the employment contract for the agreed notice period, which may be different for employer and employee.
- •Many contracts require more notice from the employer than the statutory minimum.
Calculate the statutory minimum notice
After one month of service, the employer must give one week's notice. After two years, it is one week per year of service, up to a maximum of 12 weeks after 12 years.
- •Employees need only give one week's statutory notice regardless of length of service.
Apply the longer period
The employee is entitled to whichever is longer: the contractual notice period or the statutory minimum.
- •A contractual term giving less than the statutory minimum is overridden by statute.
Consider PILON and garden leave
Check whether the contract includes a payment in lieu of notice (PILON) clause or garden leave provision, which affects how notice is served.
- •Without a PILON clause, paying in lieu of notice is technically a breach of contract (though usually accepted).
Legal Requirements
Section 86 of the Employment Rights Act 1996 sets the statutory minimum notice periods. Employer notice: one week after one month's service, increasing by one week per year up to 12 weeks maximum. Employee notice: one week after one month's service (the statutory minimum does not increase with service for employees).
Common Mistakes
Template / Example
When to Get a Solicitor
If there is a dispute about the notice period, if you want to make a payment in lieu of notice without a PILON clause, or if the dismissal may give rise to other claims.
FAQ
Can an employee be required to work during their notice period?
Yes, unless the employer places them on garden leave. The employee remains employed during notice and must fulfil their contractual duties unless told otherwise.
Does notice start from the date the letter is sent or received?
Notice generally runs from the date it is received by the other party, not the date it is sent. Check the contract for specific provisions on how notice must be given.
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