A notice period is the minimum amount of time an employer or employee must give before ending employment — and in most jurisdictions, it increases with the employee’s length of service. In the UK, the statutory minimum rises from 1 week (for 1 month–2 years’ service) to 12 weeks (for 12+ years). In Australia, it rises from 1 week to 4 weeks. In the US, there is no federal requirement — notice periods are governed by state law and employment contracts.
This article explains the statutory minimums, the formulas, and how to calculate the final working day for each jurisdiction.
Key Takeaways
- UK: Statutory notice is 1 week per year of service, capped at 12 weeks — GOV.UK.
- Australia: Statutory notice is 1–4 weeks based on service — Fair Work Act 2009 s.117.
- US: No federal requirement — notice periods depend on state law, company policy, and contract.
- Contractual notice often exceeds the statutory minimum — always check the contract first.
UK: Statutory Minimum Notice Periods
Under Section 86 of the Employment Rights Act 1996, the statutory minimum notice an employer must give an employee is:
| Length of service | Statutory notice |
|---|---|
| 1 month to 2 years | 1 week |
| 2 years | 2 weeks |
| 3 years | 3 weeks |
| 4 years | 4 weeks |
| … | +1 week per year |
| 12 years or more | 12 weeks (maximum) |
The formula: 1 week per year of service, capped at 12 weeks.
An employee who resigns must give at least 1 week’s notice regardless of length of service (unless the contract specifies longer).
Worked Example: UK
Fatima has worked for her employer for 8 years. She is being made redundant.
- Statutory notice: 8 weeks
- Her contract states: “12 weeks’ notice on termination by either party”
- Contractual notice prevails: 12 weeks
If the employer terminates without the required notice, the employee can claim a protective award of up to 12 weeks’ gross pay in an employment tribunal.
Garden Leave
An employer can place an employee on garden leave during the notice period — requiring them to stay away from the workplace while remaining employed and paid. This is lawful provided the contract contains a garden leave clause. The employee’s employment, benefits, and accrual continue during garden leave.
Payment in Lieu of Notice (PILON)
Employers can make a payment in lieu of notice (PILON) instead of requiring the employee to work the notice period. This is only lawful if the contract contains an express PILON clause. Without one, a PILON payment can trigger a breach of contract claim — and in some cases, the payment may be treated as a termination payment subject to different tax treatment.
Australia: Statutory Minimum Notice Periods
Under Section 117 of the Fair Work Act 2009, the minimum notice periods are:
| Length of service | Notice period |
|---|---|
| Less than 1 year | 1 week |
| 1–3 years | 2 weeks |
| 3–5 years | 3 weeks |
| 5+ years | 4 weeks |
The formula: 1 week for year 1, then 1 week per additional 2-year block, capped at 4 weeks.
If the employee is 45 or older and has completed at least 2 years of service, the notice period is increased by 1 additional week.
Worked Example: Australia
Carlos has 6 years’ service and is 47 years old.
- Base notice: 4 weeks (5+ years)
- Age supplement: +1 week (45+ with 2+ years)
- Total: 5 weeks
Carlos’s employer can either require him to work the 5 weeks or make a payment in lieu of notice (which is treated as a lump sum and taxed accordingly under the Income Tax Assessment Act).
Small Business Exemption
Employers with fewer than 15 employees are exempt from the NES notice period requirements. However, the employer must still provide “reasonable notice” — which, in the absence of a contract, is determined by the employee’s length of service, age, and the nature of the position.
US: No Federal Requirement
The US has no federal law requiring employers to provide notice of termination (with one exception: the WARN Act requires 60 days’ notice for mass layoffs at companies with 100+ employees).
For individual terminations, notice periods depend on:
- State law — some states have their own mini-WARN acts or final pay rules.
- Company policy — many US employers provide 2 weeks’ notice as a matter of practice.
- Employment contract — if one exists, it governs.
States With Specific Rules
| State | Rule |
|---|---|
| California | Final pay due immediately on termination; 72 hours’ notice required for resignation |
| New York | Final pay due by next regular payday |
| Texas | No specific requirement |
| Florida | No specific requirement |
| Illinois | Final pay due within the next regular payday |
The absence of a federal notice requirement means that in many US states, an employer can terminate an employee on the spot with no notice and no legal consequence (beyond paying any accrued PTO).
How to Calculate the Final Working Day
The final working day depends on when notice is given and how the notice period is counted.
UK Calculation
Last day of employment = Date notice given + Notice period − 1 day
Example: Notice given on Monday 1 July. 8 weeks’ notice. Last day = Monday 1 July + 8 weeks = Monday 26 August. The employee works up to and including Friday 22 August (if the last week ends on a working day).
Important: The notice period runs in complete weeks from the date notice is given, not from the next pay period.
Australia Calculation
Last day of employment = Date notice given + Notice period
Example: Notice given on Wednesday 2 July. 4 weeks’ notice. Last day = Wednesday 30 July. The employee works up to and including that date.
Under Australian law, the notice period begins the day after notice is given, not the day it is given.
What Happens During the Notice Period
During the notice period, the employee remains employed and entitled to all normal benefits:
- Pay: Continues at the normal rate
- Annual leave: Continues to accrue
- Superannuation (Australia): Continues to be paid
- Pension contributions (UK): Continue
- Benefits: Health insurance, company car, etc., continue unless the contract says otherwise
The employer can require the employee to work during the notice period, place them on garden leave (UK), or make a payment in lieu of notice (if the contract allows).
Common Mistakes
- Not paying notice pay when the employee is terminated immediately. If the employer terminates without notice and has no PILON clause, the employee can claim a wrongful dismissal payment.
- Confusing notice period with redundancy pay. They are separate entitlements. An employee made redundant is entitled to both notice pay and redundancy pay.
- Using the wrong notice period. The statutory minimum is a floor, not a ceiling. The contract often provides a longer period.
- Forgetting to include the age supplement in Australia. Employees aged 45+ with 2+ years’ service get an additional week.
How Leave Balance Helps
Leave Balance calculates the correct statutory and contractual notice period automatically, based on the employee’s jurisdiction, length of service, and age. The system generates the termination timeline, flags the final working day, and ensures that notice pay, annual leave accrual, and other entitlements are correctly calculated during the notice period.
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