Introduction to Notice Periods for Dismissal
A notice period for dismissal is the amount of time an employer must give an employee before ending their employment. This period acts as a buffer, allowing employees to prepare for the transition, seek new opportunities, and manage their finances. Notice periods are a crucial part of UK employment law, ensuring that dismissals are handled fairly and transparently.
Notice periods serve to protect employees from sudden job loss. When an employer decides to dismiss someone, providing notice gives the employee time to adjust, look for another job, and make necessary arrangements. For employers, following the correct notice period helps avoid legal disputes and demonstrates good practice in managing workplace changes.
In the UK, the rules around notice periods are set out in the Employment Rights Act 1996. There are two main types of notice periods:
Statutory notice periods: These are the legal minimum notice periods that employers must give, based on the employee’s length of continuous service. For example, after one month of employment, an employee is entitled to at least one week’s notice. This increases with longer service, up to a maximum of 12 weeks for 12 or more years of service.
Contractual notice periods: Sometimes, an employment contract will specify a longer notice period than the statutory minimum. In these cases, the contractual notice period applies, provided it is not less than the legal minimum.
It’s important for both employers and employees to understand their rights and responsibilities regarding notice periods. Failing to give the correct notice can lead to claims for wrongful dismissal or other legal issues. If you’re unsure about the rules, reviewing your employment contract and seeking advice can help clarify your position.
Understanding notice periods is just one part of the wider topic of dismissal, which covers when and how an employer can end someone’s employment. By knowing your rights and the rules around notice periods, you can better protect yourself and ensure any dismissal is handled lawfully and fairly.
Statutory Notice Periods in the UK
In the UK, the law sets out minimum notice periods that employers must give employees before ending their employment. These are known as statutory notice periods and are outlined in the Employment Rights Act 1996. The purpose of these rules is to ensure employees have fair warning and time to prepare for the end of their job.
The minimum notice period an employer must give depends on how long the employee has worked for them. The rules are as follows:
Employed for 1 month to 2 years: The employer must give at least 1 week’s notice.
Employed for more than 2 years: The employer must give 1 week’s notice for each complete year of service, up to a maximum of 12 weeks. For example, if someone has worked for 5 years, they are entitled to 5 weeks’ notice. If they have worked for 15 years, the maximum statutory notice is 12 weeks.
Here’s a quick summary:
1 month to 2 years: 1 week’s notice
2 years: 2 weeks’ notice
3 years: 3 weeks’ notice
…
12 years or more: 12 weeks’ notice (this is the maximum required by law)
Statutory notice periods apply if the employment contract does not set out a longer notice period. If the contract offers more generous notice than the statutory minimum, the contractual notice applies. However, an employer cannot give less than the statutory minimum, even if the contract says otherwise.
Notice periods are measured in calendar weeks, not working days. This means the notice period runs continuously from the day after notice is given, including weekends and bank holidays. For example, if an employer gives notice on a Wednesday, the notice period starts on Thursday and runs for the required number of weeks, regardless of the employee’s usual working pattern.
Suppose an employee has worked for their employer for 7 years. By law, they are entitled to 7 weeks’ notice. If their contract says they should receive 8 weeks’ notice, the longer contractual period applies. If the contract says only 4 weeks, the statutory minimum (7 weeks) must be given.
What if the employer doesn’t give the correct notice? If an employer fails to provide the correct statutory notice, the employee may be entitled to pay in lieu of notice (PILON) or could make a claim for wrongful dismissal.
Does statutory notice apply to all types of dismissal? Statutory notice periods generally apply to most dismissals, but there are exceptions, such as gross misconduct, where an employer may dismiss someone without notice (summary dismissal).
Understanding your rights around notice periods can help you plan your next steps if your employment is ending. Always check your contract and know the legal minimums to ensure you receive what you are entitled to.
Contractual Notice Periods
In the UK, while the law sets out minimum notice periods that employers must give when dismissing an employee, many employment contracts include their own notice requirements. These are known as contractual notice periods. If a contract states a longer notice period than the statutory minimum, the contractual period will apply instead.
A contractual notice period is the amount of notice agreed between the employer and employee, as written in the employment contract. This period can be longer—but not shorter—than the statutory minimum set out in the Employment Rights Act 1996. For example, if the statutory minimum notice is one week, but your contract says you are entitled to four weeks’ notice, your employer must give you four weeks’ notice if they wish to dismiss you.
Employers are not allowed to give less than the statutory minimum, even if the contract says otherwise. However, if the contract is more generous, the longer period takes precedence.
Example: If you have worked for your employer for three years, the statutory minimum notice is three weeks. If your contract states a six-week notice period, you are entitled to six weeks’ notice.
Employers may offer longer notice periods to attract and retain staff, or to ensure continuity in the workplace. Longer notice periods can give both parties more time to plan for changes, such as recruiting a replacement or finding a new job.
Both employees and employers should carefully check the employment contract to understand what notice period applies. The contract should clearly state:
How much notice must be given by the employer if they wish to dismiss the employee.
How much notice the employee must give if they wish to resign.
Any circumstances where notice might not be required, such as in cases of gross misconduct.
If you are unsure about the notice period, ask your employer or seek advice from a legal professional or trade union representative.
It’s common for employment contracts to also set out how much notice an employee must give if they decide to resign. This is usually set out in the same section as the employer’s notice requirements. For example, a contract might require the employee to give one month’s notice to resign, even if the statutory minimum is only one week.
Read your contract carefully: Notice periods should be clearly stated. If they are not, the statutory minimum applies.
Keep a copy: Always keep a copy of your signed contract for reference.
Discuss changes in writing: If you and your employer agree to change the notice period, make sure this is recorded in writing and signed by both parties.
What if the contract doesn’t mention notice periods? If your contract is silent on notice, the statutory minimum applies.
Can an employer change the notice period? Employers cannot change notice periods without your agreement. Any change should be made in writing and agreed by both parties.
Does the same notice period apply during probation? Contracts sometimes set shorter notice periods during a probationary period. If so, these should be clearly stated in the contract.
Understanding your contractual notice period is important to ensure both parties meet their legal obligations and avoid disputes. Always check your contract and seek advice if you are unsure about your rights or responsibilities.
When Notice Periods Do Not Apply or Can Be Shortened
While notice periods are a fundamental part of dismissal procedures in the UK, there are certain situations where they may not apply or can be reduced. Understanding these exceptions is important for both employers and employees to avoid misunderstandings and ensure legal compliance.
In cases of gross misconduct, an employer can dismiss an employee without giving any notice. Gross misconduct refers to behaviour that is so serious it justifies immediate termination of employment. Examples include theft, violence, fraud, or serious breaches of health and safety rules.
Under section 86(6) of the Employment Rights Act 1996, the right to a statutory notice period does not apply if an employee is dismissed for gross misconduct. However, what constitutes gross misconduct should be clearly set out in the employer’s disciplinary policy, and employers are advised to carry out a fair investigation and disciplinary process before making a decision. If an employee feels they have been unfairly dismissed without notice, they may have grounds to challenge the dismissal at an employment tribunal.
Notice periods can also be changed if both the employer and employee agree. For example, an employee may wish to leave earlier than their notice period allows, and the employer may consent to this. Similarly, an employer and employee can mutually agree to waive the notice period altogether, allowing the employment to end immediately.
It is best practice to record any such agreement in writing to avoid disputes later on. Without mutual agreement, both parties are generally expected to adhere to the contractual or statutory notice period, whichever is longer.
Sometimes, instead of requiring an employee to work their notice period, an employer may choose to end the employment immediately and pay the employee for the notice period they would have worked. This is known as payment in lieu of notice (PILON).
Whether an employer can use PILON depends on the employment contract. If the contract includes a PILON clause, the employer can lawfully make this payment and terminate employment straight away. If there is no such clause, making a PILON could technically be a breach of contract, although in practice, many employers and employees accept this arrangement.
The payment must cover all the pay and benefits the employee would have received during the notice period, including basic salary, holiday entitlement, and any other contractual benefits. Tax and National Insurance are usually deducted from PILON as with normal pay.
Employers should ensure their disciplinary procedures are robust and that any decision to dismiss without notice is fair and well-documented. They should also check employment contracts before offering PILON or agreeing to waive notice.
Employees should review their contracts and seek clarity from their employer if they are asked to leave without working their notice, or if they are offered PILON.
Can an employee refuse PILON and insist on working their notice? If the contract allows for PILON, the employer can generally insist on this arrangement. If not, the employee may be entitled to work their notice unless both parties agree otherwise.
What if there is a dispute about gross misconduct? If an employee believes their dismissal for gross misconduct was unfair, they may be able to challenge it through the company’s grievance procedure or at an employment tribunal.
Understanding when notice periods do not apply or can be shortened helps both employers and employees navigate the end of employment fairly and legally.
Rights and Obligations During the Notice Period
When an employer gives notice of dismissal, both the employer and employee have specific rights and responsibilities during the notice period. Understanding what you are entitled to—and what is expected of you—can help ensure the process is fair and legally compliant.
During your notice period, you remain an employee and are generally entitled to receive your normal pay and benefits. This includes:
Full Pay: You should continue to receive your usual salary or wages for the duration of the notice period, whether you are working or not, unless you agree otherwise.
Benefits: Any benefits you received before notice was given—such as pension contributions, private health insurance, company car, or gym membership—should continue throughout your notice period.
Holiday Entitlement: You continue to accrue holiday entitlement as normal during the notice period. You may be able to use up any outstanding holiday during this time, but this should be agreed with your employer. If you have unused holiday at the end of your notice, you are usually entitled to be paid for it.
Example: If you are entitled to 28 days of holiday per year and you work a one-month notice period, you will continue to build up holiday for that month. If you have five days of unused holiday at the end of your notice, your employer must pay you for those days.
Employers must meet certain legal requirements during the notice period, as set out in the Employment Rights Act 1996. These include:
Providing Written Notice: Employers must provide written notice of dismissal, stating the length of the notice period and the last day of employment.
Maintaining Terms and Conditions: All contractual terms—including pay, benefits, and working conditions—must remain unchanged throughout the notice period.
Allowing Time Off: If you are being made redundant and have been continuously employed for at least two years, you have the right to reasonable time off to look for another job or arrange training.
Employers are not allowed to reduce your pay or benefits during the notice period unless you agree to it in writing.
In most cases, employees are expected to work as normal during their notice period. This means:
Performing your usual duties and responsibilities.
Continuing to follow company policies and procedures.
Remaining eligible for benefits and accruing holiday.
If you take holiday during the notice period, your employer can require you to use up remaining holiday entitlement, but they must give you notice that’s at least twice as long as the holiday they want you to take. For example, to require you to take five days’ holiday, they must give at least ten days’ notice.
Sometimes, an employer may ask you not to work during your notice period. This is known as “garden leave.” While on garden leave:
You remain employed and must be available to work if requested.
You continue to receive your normal pay and benefits.
You are usually not allowed to start a new job or work for a competitor during this time, as you are still bound by your employment contract.
Garden leave is often used to protect the employer’s business interests, such as preventing you from accessing sensitive information or contacting clients before you leave.
Example: If your contract includes a three-month notice period and your employer places you on garden leave, you will not need to come into work for those three months but will still be paid as usual. You must not start a new job until the garden leave period ends.
If your employer does not want you to work your notice and does not place you on garden leave, they may offer “pay in lieu of notice” (PILON). This means you receive payment instead of working the notice period. The terms for PILON should be set out in your contract, and the payment should equal what you would have earned during the notice period, including pay and benefits.
Always check your employment contract for specific terms about notice periods, garden leave, and pay in lieu of notice.
If you believe your employer is not meeting their obligations during your notice period, you may have grounds to make a claim for unlawful deduction of wages or breach of contract.
Keep records of all communications and payments during your notice period for your own protection.
Understanding your rights and obligations during the notice period can help ensure a smoother transition out of employment and protect your legal entitlements.
What Happens If Notice Is Not Given Correctly
If an employer fails to give the correct notice period when dismissing an employee, it can have significant legal and financial consequences. The law sets out minimum notice periods under the Employment Rights Act 1996, and many employment contracts specify longer periods. If these are not followed, the dismissal may be considered wrongful or even unfair.
When an employer does not provide the required notice—or pay in lieu of notice—they are likely in breach of contract. This is known as wrongful dismissal. For example, if your contract says you are entitled to four weeks’ notice but your employer only gives you one week, you can claim for the remaining three weeks’ pay. Employees can pursue such claims through an employment tribunal or, in some cases, the civil courts.
Failing to give proper notice can also be evidence of unfair dismissal, especially if the employer did not follow a fair procedure or lacked a valid reason for dismissal. To bring an unfair dismissal claim, you usually need to have worked for your employer for at least two years. If successful, you could be entitled to compensation, and in some cases, reinstatement to your job.
Disagreements about notice periods are common, often arising from unclear contract terms or misunderstandings about statutory entitlements. Sometimes, employers believe they can dismiss an employee without notice for gross misconduct, but this should only happen in cases of serious wrongdoing and after a fair disciplinary process.
Employers should always follow the correct procedures for giving notice. This includes providing written notice and ensuring the notice period matches both statutory and contractual requirements. Failing to do so not only risks legal claims but can also damage workplace trust and reputation.
If you believe your employer has not given you the correct notice, it’s important to check your contract and seek advice. You may be able to negotiate a settlement or bring a claim for compensation if your rights have been breached. Understanding your options can help you respond effectively and protect your interests.
Resolving Disputes About Notice Periods
Disagreements about notice periods are not uncommon, especially if there is confusion over what was agreed in the employment contract or uncertainty about the statutory minimum requirements. Typical disputes include whether the correct amount of notice was given, if pay in lieu of notice is owed, or if dismissal procedures were properly followed. These issues can create tension and uncertainty for both employers and employees.
Before considering legal action, it’s often best to try resolving the issue through open communication. Discussing the situation directly with your employer or employee can sometimes clear up misunderstandings quickly. However, if this does not lead to a solution, alternative dispute resolution (ADR) methods can help. ADR includes approaches such as mediation, where an independent third party helps both sides reach an agreement, and conciliation, which is often facilitated by organisations like Acas (the Advisory, Conciliation and Arbitration Service).
Using ADR can save time, reduce costs, and help maintain working relationships compared to going to an employment tribunal. For more details on how these processes work and when they might be appropriate, see our guide to employment dispute procedures.
It’s important to seek advice as soon as a dispute arises. Early guidance from a trade union, Acas, or a legal professional can clarify your rights and responsibilities, helping to prevent the situation from escalating. Acting quickly also ensures you don’t miss important deadlines, such as the three-month time limit for bringing most employment claims to a tribunal.
Remember, whether you are an employer or employee, understanding your rights around notice periods and dismissal procedures can help you resolve disputes effectively and protect your interests.
Related Topics to Explore
When learning about notice periods for dismissal, it’s helpful to understand how this topic fits into the wider landscape of employment law. Below are some key related topics you may want to explore for a fuller picture of your rights and options:
The concept of dismissal covers every situation where an employer ends an employee’s contract. This includes not just notice periods, but also the reasons for dismissal, fair and unfair dismissals, and the correct procedures employers must follow. If you’re looking for a comprehensive overview—including your rights, employer responsibilities, and what to do if you’re dismissed—visit our main Dismissal page.
If you believe you’ve been dismissed without a valid reason or proper process, you may have a case for unfair dismissal. UK law (Employment Rights Act 1996) protects employees from being dismissed unfairly, including situations where the employer fails to give the correct notice or follow a fair procedure. Learn more about what qualifies as unfair dismissal, how to make a claim, and the potential remedies available.
Redundancy is a specific type of dismissal that happens when a job role is no longer needed, often due to business changes or closures. Redundancy has its own set of legal requirements, including proper notice periods, consultation processes, and redundancy pay. If your dismissal is due to redundancy, understanding your rights is essential—especially regarding notice, selection criteria, and potential alternatives.
Exploring these topics can help you get a clearer sense of your legal position and options if you’re facing dismissal or want to know more about your rights at work.
