Notice periods are the minimum time an employer or employee must give before ending an employment contract. In the UK, the statutory minimum notice period increases with the employee’s length of service — from one week (after one month) to 12 weeks (after 12 years). Most employment contracts provide for longer notice periods than the statutory minimum, and the contractual period takes precedence.
This guide covers statutory notice, contractual notice, payment in lieu of notice, and how to calculate the correct period.
Key takeaways
- The statutory minimum notice increases with length of service — from 1 week (after 1 month) to 12 weeks (after 12 years).
- Contractual notice takes precedence over statutory notice if it is longer.
- The employee’s notice period is usually shorter than the employer’s — typically 1 week to 1 month.
- Payment in lieu of notice (PILON) allows the employer to end employment immediately with pay — if the contract allows it.
- Summary dismissal (dismissal without notice) is only lawful for gross misconduct.
Statutory notice periods
The statutory minimum notice period is set out in s.86 of the Employment Rights Act 1996:
Employer’s notice to employee
| Length of service | Minimum notice period |
|---|---|
| 1 month to 2 years | 1 week |
| 2 to 12 years | 1 week for each year of service |
| 12+ years | 12 weeks |
Employee’s notice to employer
| Length of service | Minimum notice period |
|---|---|
| 1 month to 2 years | 1 week |
| 2+ years | 1 week (unless the contract specifies more) |
The statutory minimum for employees is always 1 week, regardless of length of service. The employment contract can require a longer period — typically 1 month for most roles, and longer for senior positions.
Contractual notice periods
The employment contract can specify notice periods that exceed the statutory minimum. Common contractual arrangements:
| Role | Typical employer notice | Typical employee notice |
|---|---|---|
| Junior/mid-level | 1 month | 1 week to 1 month |
| Senior/management | 3–6 months | 1–3 months |
| Director/executive | 6–12 months | 3–6 months |
The contractual notice period takes precedence over the statutory minimum only if it is longer. You cannot agree to a contractual notice period that is shorter than the statutory minimum.
Payment in lieu of notice (PILON)
PILON allows the employer to end the employment immediately, paying the employee for the notice period without requiring them to work. For PILON to be lawful:
- The contract must contain a PILON clause — you cannot make a PILON without contractual authority.
- The employee must receive full pay for the notice period.
- The employee’s benefits continue during the notice period (or the PILON equivalent).
- The employee remains bound by post-termination obligations — confidentiality, non-compete, etc.
If there is no PILON clause, you cannot simply pay the employee and send them home. Doing so may result in a breach of contract claim.
Garden leave vs. PILON
| Element | Garden leave | PILON |
|---|---|---|
| Employment continues | Yes | No — ends on PILON date |
| Employee attends work | No | No |
| Salary and benefits | Paid throughout | Paid as lump sum or during notice |
| Contractual obligations | Continue during leave | Post-termination obligations survive |
| Holiday accrual | Continues | Stops at PILON date |
Garden leave keeps the employment relationship alive during the notice period, which strengthens the enforceability of post-termination restrictions.
Summary dismissal
Summary dismissal is dismissal without notice. It is only lawful for gross misconduct — a fundamental breach of contract that destroys the employment relationship. Examples include:
- Theft or fraud.
- Violence or harassment.
- Serious breach of health and safety rules.
- Deliberate disclosure of confidential information.
Even for gross misconduct, you should follow a fair disciplinary process before dismissing. Failure to do so may result in an unfair dismissal claim — even where the reason for dismissal was genuine.
Notice and redundancy
When making employees redundant, the notice period depends on the employee’s length of service:
| Length of service | Statutory redundancy notice |
|---|---|
| 1 month to 2 years | 1 week |
| 2 to 4 years | 2 weeks |
| 4 to 6 years | 3 weeks |
| 6 to 8 years | 4 weeks |
| 8 to 10 years | 5 weeks |
| 10 to 12 years | 6 weeks |
| 12+ years | Up to 12 weeks |
You can give more notice than the statutory minimum, or make a PILON if the contract allows it.
Employer obligations
UK employers have five core duties around notice periods:
- Give the correct notice — statutory or contractual, whichever is longer.
- Pay salary and benefits during the notice period — whether the employee works or is on garden leave.
- Honour the notice — do not terminate early without contractual authority (PILON or garden leave).
- Apply post-termination obligations — confidentiality, non-compete, and IP clauses survive the notice period.
- Handle redundancy notice correctly — use the statutory redundancy notice table.
For more UK context, see our guides to garden leave, unpaid leave, and compulsory leave.
Frequently asked questions
What is the statutory notice period in the UK?
The statutory minimum is 1 week after 1 month of service, increasing by 1 week per year of service up to a maximum of 12 weeks after 12 years.
Can my employer give me less notice than the statutory minimum?
No. The statutory minimum is the absolute minimum. Your contract can provide for more, but not less.
What is payment in lieu of notice?
PILON is when the employer pays the employee for the notice period without requiring them to work. It requires a PILON clause in the contract.
Can I be dismissed without notice?
Only for gross misconduct — a fundamental breach of contract that destroys the employment relationship. Even then, you should follow a fair disciplinary process.
Does notice pay include bonuses and commission?
Yes. Notice pay should include all normal remuneration — salary, bonus (if regular), commission (if regular), and contractual benefits. The specific terms depend on your contract.
Putting it into practice
Five steps keep your notice period process correct:
- Check the employment contract for the applicable notice period — use the longer of statutory and contractual.
- Apply the correct notice for redundancy using the statutory table.
- Include a PILON clause in all employment contracts — it gives you flexibility.
- Pay salary and benefits during the notice period, whether the employee works or is on garden leave.
- Enforce post-termination obligations — confidentiality and non-compete clauses survive the notice period.
A leave management system that calculates statutory and contractual notice periods, manages garden leave and PILON, and tracks post-termination obligations keeps the end-of-employment process compliant and secure.
Sources
Last updated: 26 July 2026. This article is general information, not legal advice. Notice periods depend on your contract and specific circumstances — check your terms and seek legal advice if needed.