This guide is maintained as a current resource for September 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.
Need to resign or facing termination? Understand your rights regarding notice periods, pay, and contractual obligations. This guide covers the law to ensure you leave on your terms and protect your income.
Notice periods are a core component of employment law in England and Wales, governing how much time an employee or employer must give before ending a contract of employment. These periods provide a transition framework that protects both parties, ensuring employers have time to plan for replacements and employees have an opportunity to organise their next steps. Legal requirements for notice periods derive from statutory minimums under the Employment Rights Act 1996 and from terms agreed in employment contracts and written statements of terms. This article explains how notice periods work in practice, how they are calculated, when they start, exceptions and risks, and answers to common questions arising in workplace transitions.
1. What Is a Notice Period?
A notice period is the length of time between when a resignation or termination is communicated and when the employment actually ends. During this time, the employee normally continues working and the employer continues paying ordinary wages and contractual benefits. Notice periods ensure fairness, continuity of work and clarity about the employment end date.
2. Statutory Minimum Notice Periods
2.1 Employer's Minimum Notice
Under the Employment Rights Act 1996, employers must give employees a statutory minimum notice period before terminating a contract, based on length of continuous service:
- Less than one month's service: no statutory notice required.
- One month to under two years' service: one week's notice.
- Two to 12 years' service: one week's notice for each year of service.
- 12 or more years' service: 12 weeks' notice (maximum).
This applies whether the employer dismisses an employee or ends employment by redundancy, subject to exceptions like gross misconduct.
2.2 Employee's Minimum Notice
Employees must give at least one week's notice if they resign and have been continuously employed for one month or more. If they have worked for less than one month and there is no contractual notice period, no statutory notice applies, although reasonable notice might still be expected in practice.
3. Contractual Notice Periods
While statutory notice periods are the legal minimum, employment contracts often specify longer notice periods. These contractual notice periods can apply to employers, employees or both. If the contract provides a longer period than the statutory minimum, the longer contractual period applies. Employers and employees can agree notice requirements in the contract, written statement of employment particulars or employee handbook.
For example, an employee's contract could require three months' notice on resignation even if statutory minimum notice is one week. In that case, the contractual notice period usually governs, provided it does not fall below the statutory minimum.
4. When the Notice Period Starts
The notice period normally begins:
- the day after the employee gives notice of resignation;
- the day after the employer tells the employee they are being dismissed or made redundant;
- or on the day the employee receives a written notice if the contract specifies that reading time is required (for example, allowing reasonable time to read an email or letter).
These rules ensure clarity about when notice periods commence, especially for timing pay and end‑of‑employment processes.
5. Payment During Notice
During a valid notice period, the employee is typically entitled to:
- ordinary pay (basic salary) for hours worked;
- contractual benefits (such as pension contributions or insurance) as provided by the employment contract or policy;
- holiday accrual and rights that continue to accrue during the notice period.
If an employer chooses not to require an employee to work their notice period, they may offer payment in lieu of notice (PILON). In that case, the employee receives pay instead of working the notice period. If a contract expressly allows PILON, employers can trigger this without requiring work. If there is no contractual PILON clause, the employer's failure to allow the employee to work the notice period may be a breach of contract, potentially giving rise to a claim for wrongful dismissal.
6. Exceptions and Special Situations
6.1 Gross Misconduct
An employer may dismiss an employee without notice if the employee has committed gross misconduct - conduct that fundamentally breaches the contract (such as theft or violence). In these circumstances, no statutory or contractual notice is due.
6.2 Agreement to Shorten Notice
Both employer and employee can mutually agree to shorten or waive a notice period. Such agreements are often recorded in writing to avoid disputes about entitlement or pay.
6.3 Leaving Early Without Serving Notice
If an employee resigns without giving the required notice and no agreement is reached, they may be in breach of contract. Employers might seek to recover losses (such as recruitment costs) through legal action in a county court, though practical enforceability varies and often depends on clear contractual terms.
7. Notice Periods and Dismissal Rights
Notice periods interact with broader employment rights. For example:
- Employees with sufficient service may have the right to claim unfair dismissal if dismissed without proper notice or a fair process;
- Failure to honour notice pay may give rise to claims for wrongful dismissal for unpaid wages equivalent to the notice period.
Tribunals and courts consider whether statutory and contractual notice was provided correctly when assessing related claims.
8. Common Questions and Practical Issues
8.1 What If My Contract Doesn't Specify Notice?
If a contract is silent on notice and the employee has worked for one month or more, the statutory minimum applies: one week's notice for employees resigning and the service‑based scale for employers terminating.
8.2 Can Notice Be Paid Instead of Worked?
Yes, payment in lieu of notice (PILON) is a recognised means to satisfy notice obligations if the contract authorises it, or if both parties agree.
8.3 Do Holidays Count During Notice?
Holidays can be taken during the notice period if agreed, and holiday entitlement continues to accrue during the notice period (even if the employee is on holiday).
8.4 Is Notice Extended by Illness or Leave?
Notice periods normally run in calendar time and may include periods when the employee is absent due to sickness, holiday or family leave (unless contractual terms specify otherwise).
Summary
Notice periods provide legally required time for both employees and employers to conclude an employment relationship responsibly in England and Wales. Statutory minimum notice periods are set under the Employment Rights Act 1996, ensuring employers and employees give reasonable notice based on length of continuous service. Contractual notice may be longer, and the longer of statutory or contractual periods generally applies. Notice periods start when notice is given or received, with clear rules governing timing, payment and exceptions such as gross misconduct. Understanding notice requirements helps protect rights, supports orderly workplace transitions and avoids disputes that may lead to tribunal or court claims.
