This guide is maintained as a current resource for July 2026 and covers only the laws of England and Wales. Information is for general guidance, not legal advice. Consult a qualified solicitor for advice specific to your situation.
Facing redundancy? Understand your statutory and contractual notice rights, how notice pay works, and the specific rules that apply to your situation during a redundancy process.
When an employee is made redundant in England and Wales, employers must provide a notice period before the employee's contract ends. This requirement protects employees by giving time to prepare for the end of employment, seek alternative work, arrange finances, and exercise other legal rights. Notice periods in redundancy cases are governed by statutory law and contractual agreements. Understanding how these periods work, when they start, what rights employees have, and how disputes are handled is essential for both employees and employers.
What Is a Notice Period?
A notice period is the time between when an employer informs an employee that they will be made redundant and the day their employment actually ends. During this time, the employee is usually expected to work and continues to receive their normal pay and benefits unless the employer pays in lieu of notice (PILON). A proper notice period must be given in accordance with statutory law or the employment contract, whichever is more generous.
Statutory Notice Periods
Under the Employment Rights Act 1996 and current government guidance, employees with at least one month's continuous service are entitled to a minimum statutory notice period before redundancy. The statutory periods are:
- At least one week's notice for employees with between one month and two years' service.
- One week's notice for each full year of service for employees with two to 12 years' service.
- 12 weeks' notice for employees with 12 or more years' service (this is the statutory maximum).
For example, an employee with five years' service is entitled to at least five weeks' notice. Statutory notice cannot be reduced below these minimums.
Contractual Notice Periods
Many employment contracts include contractual notice periods that are longer than the statutory minimum. Employers must honour these contractual periods if they are more generous. A contract may specify fixed timeframes (for example, one month or three months), or may link notice to length of service. In redundancy cases, the longer of statutory or contractual notice applies.
Contracts may also contain clauses on payment in lieu of notice (PILON) or garden leave, which affect how notice is handled but do not change the entitlement itself. Even where PILON or garden leave is used, the employee's right to notice pay remains.
When Notice Is Given
Notice of redundancy can only be given after the consultation and selection process has concluded. Employers should confirm in writing:
- that redundancy is proposed;
- the length of the notice period;
- the date on which notice starts;
- the date employment will end;
- redundancy pay details and how it is calculated;
- how to appeal the redundancy decision.
The notice period normally starts on the day the employee is informed in writing that they will be made redundant. Any consultation before notice does not count toward the notice period.
Working or Not Working During Notice
Employees usually continue to work during their notice period and are paid their normal salary and benefits. If the employer instructs an employee not to work during this period (for example, garden leave), the employee is still entitled to full pay and benefits unless a valid PILON clause is exercised. Even where employers choose a PILON, the amount paid should reflect what the employee would have earned during the notice period, including contractual benefits where appropriate.
Leaving Early and Counter‑Notice
An employee may choose to leave before the end of their notice period, but doing so can affect their redundancy rights. To preserve entitlements such as statutory redundancy pay, employees may need to give counter‑notice in writing during the employer's notice period. If they leave without valid counter‑notice, they risk being treated as resigning, which can affect redundancy pay entitlement. The law recognises that the relevant date for redundancy calculations may change with counter‑notice, potentially increasing entitlements for statutory redundancy pay.
Notice During Insolvency
If an employer becomes insolvent, the normal notice rules still apply, but employees may need to apply to the government's Redundancy Payments Service for statutory redundancy pay if the employer cannot pay. In such cases, notice entitlements and redundancy pay are handled under insolvency procedures, but statutory minimum notice remains a legal entitlement.
Practical Considerations
Checking Your Contract
Employees should review their employment contract to understand whether their notice period entitlement is statutory, contractual, or a combination. Contracts often contain enhanced terms, including longer notice periods or provisions on PILON and garden leave.
Consultation Before Notice
Employers must carry out a proper consultation process before issuing notice of redundancy. Notice issued prematurely, before proper consultation is completed, can render the dismissal unfair. This may lead to employment tribunal claims if the process is not followed correctly.
Unilateral Changes to Notice
Once an employer issues written notice, they generally cannot change the notice period or end date without the employee's agreement. Employers and employees may agree to changes, but unilaterally revoking or altering notice can lead to disputes over redundancy pay and termination rights.
Time Off During Notice
During the notice period, employees with at least two years' service are entitled to reasonable paid time off to look for new work, attend interviews or receive training. This entitlement is part of statutory redundancy rights and applies during the notice period.
Common Questions
1. Do I always work my notice?
Not always. Employers can choose to have employees work their notice, place them on garden leave, or pay in lieu of notice if the contract allows it. In all cases, the entitlement to pay for the notice period remains.
2. Is notice separate from redundancy pay?
Yes. Notice pay is separate from redundancy pay. Notice protects income before the employment ends, while redundancy pay compensates for the loss of the role. Both entitlements can apply independently.
3. Can notice be longer than statutory minimum?
Yes. Contractual notice periods can be longer than statutory minimums, and employers must honour the more generous term.
Key Takeaways
Notice periods are a fundamental part of the redundancy process in England and Wales. Employees with at least one month's service are entitled to statutory minimum notice based on their length of service, and many will have contractual notice periods that are longer. Notice must be given after consultation and selection, and employees generally continue working (or are paid) for the notice period. Notice pay is separate from redundancy pay, and both rights are protected by employment law. Proper notice procedures help ensure redundancy is handled fairly and reduce the risk of tribunal claims for procedural unfairness or wrongful dismissal.
