Notice Period Rights for UK Employees

When your employment ends — whether your employer dismisses you or you resign — both sides must give notice. The law sets minimum periods that cannot be waived, and your contract may give you more. This guide explains what you're entitled to, what happens if your employer ignores it, and what your rights are while you're working out your notice.

Statutory vs Contractual Notice — The Key Difference

There are two types of notice period that matter: statutory and contractual.

Statutory notice is set by law under the Employment Rights Act 1996. It is the absolute minimum your employer must give you — or you must give your employer — regardless of what your contract says. Statute sets a floor, not a ceiling.

Contractual notice is what your employment contract says. It can be longer than the statutory minimum — and if it is, your employer must honour it. It can never be legally shorter than the statutory minimum, even if your contract tries to set it lower.

The rule is simple: you always get whichever is longer.

Statutory Notice Periods — Employer to Employee

When your employer dismisses you, makes you redundant, or ends your employment for any reason other than gross misconduct, the statutory minimum notice they must give you is:

Statutory Notice — Employee to Employer

When you resign, the statutory minimum notice you must give your employer is 1 week — regardless of how long you have worked there. This is a fixed statutory floor with no sliding scale.

However, your contract will almost certainly require more than 1 week. Senior employees commonly have 1, 3, or 6 months of contractual notice. Check your employment contract before handing in your notice — failing to give the correct contractual notice is a breach of contract and could expose you to a claim from your employer.

What Happens During Your Notice Period

While you are working your notice period you remain a full employee with all the same rights. Specifically:

• Full pay — you must receive your normal contractual pay throughout the notice period, even if you are off sick, on holiday, or on other statutory leave
• Holiday accrual — you continue to accrue holiday entitlement during your notice period. Any accrued but unused holiday should be paid out on your final day
• Benefits — contractual benefits such as private health insurance, pension contributions and a company car should continue throughout notice unless your contract says otherwise
• Sick pay — if you fall ill during your notice period you are entitled to at least Statutory Sick Pay, and your full contractual pay if your employer's sick pay policy provides for it

Pay in Lieu of Notice (PILON)

Instead of requiring you to work your notice period, your employer can end your employment immediately and pay you a lump sum covering the notice period you would have worked. This is called pay in lieu of notice, or PILON.

PILON is always fully taxable as employment income. Income Tax and National Insurance are deducted at your normal rates. This has applied since April 2018 regardless of what your employment contract says — even if your contract has a specific PILON clause describing a different tax treatment, HMRC's rules override it.

PILON does not count towards the £30,000 tax-free termination payment threshold. If you are also receiving statutory redundancy pay, that element remains separately tax-free up to £30,000 — but the PILON sits outside that exemption entirely.

Garden Leave During Notice

Your employer may instruct you to stay at home during your notice period while remaining employed — this is garden leave. You must receive your full pay and benefits throughout. Your employer cannot ask you to take on other employment or work for a competitor during garden leave.

Garden leave is commonly used where employers want to protect client relationships or confidential information during the handover period. See the Garden Leave guide for a full explanation of your rights and restrictions.

If Your Employer Dismisses You Without Notice

Dismissing you without notice or without paying PILON — in any situation other than gross misconduct — is wrongful dismissal. It is a breach of your employment contract and gives you the right to claim the value of your unpaid notice period.

Your options if this happens:

• Write to your employer formally — a written demand citing your statutory or contractual notice entitlement often resolves the matter quickly
• Acas early conciliation — before bringing any employment tribunal claim you must first notify Acas and attempt early conciliation
• Employment tribunal claim — for wrongful dismissal claims, the time limit is 3 months less one day from the date of dismissal (after completing Acas early conciliation). Claims above £25,000 may need to go to the civil courts instead.

For full details on wrongful dismissal — including how it differs from unfair dismissal — see the Wrongful Dismissal guide.

Notice and Redundancy

If you are being made redundant you are entitled to both your notice period and your statutory redundancy pay — they are separate entitlements. Your employer cannot count your notice period as part of your redundancy payment.

If your employer makes you redundant with immediate effect and pays PILON instead of notice, that PILON is taxable as earnings. Your statutory redundancy pay remains separately tax-free.

Use the Statutory Redundancy Pay Calculator to work out both figures if you are facing redundancy.

Notice Periods and Settlement Agreements

If your employment is ending under a settlement agreement, the treatment of your notice period is one of the most important elements to negotiate. Whether you work your notice, take garden leave, or receive PILON will affect how much tax you pay on the overall package.

PILON must always be included as a taxable element. Payments genuinely in compensation for loss of employment — above and beyond notice pay and holiday — may fall within the £30,000 exemption. See the Settlement Agreements guide for a full breakdown.

Related Tools

Related Guides

Frequently Asked Questions

What is the minimum notice my employer must give me?

At least 1 week after 1 month of service, then 1 week per complete year of service up to a maximum of 12 weeks. Your contract may give you more — whichever is longer applies.

Is PILON taxable?

Yes, always. Pay in lieu of notice is fully taxable as earnings — Income Tax and National Insurance are deducted at your normal rate. It does not benefit from the £30,000 termination payment exemption.

What notice must I give when I resign?

Statutory minimum is 1 week regardless of service length. Your contract will almost certainly require more — check before resigning.

What are my rights if I'm off sick during my notice period?

You are entitled to full pay during your statutory minimum notice period even if you are too ill to work. Your employer cannot reduce your pay during the statutory notice period.

What if my employer ends my employment without giving proper notice?

That is wrongful dismissal — a breach of contract. You can claim the value of your unpaid notice period through Acas early conciliation and, if unresolved, an employment tribunal. The time limit is 3 months less one day from dismissal.

Summary

• Statutory notice from your employer: 1 week from 1 month service, then 1 week per year up to 12 weeks maximum
• Statutory notice from you to your employer: always 1 week — but your contract likely requires more
• You always get whichever is longer — statutory or contractual
• During notice you receive full pay, accrue holiday, and keep all benefits
• PILON is always fully taxable — no exceptions since April 2018
• Garden leave is paid notice served at home — full pay and benefits must continue
• Dismissal without notice or PILON is wrongful dismissal — claim the value of your notice period
• Use the Notice Period Calculator → to see your exact entitlement and notice end date