It’s often easier for organisations to focus on recruitment and day-to-day employee management than on what happens at the end of the working relationship. However, how an organisation and its employees navigate termination of employment can have a significant and lasting impact on both parties.
The term’ notice period’ refers to the length of time an employee continues working after they or the company decides to end the contract of employment. When organisations handle notice periods poorly, they risk reputational damage, reduced morale, and a drop in overall productivity. Individuals also benefit from honouring their notice periods, as it helps ensure a smooth handover, end the contract on a positive note, and avoid legal repercussions.
In this article, we will cover the process and legal requirements for notice periods, provide a notice period calculator and comparison chart, and highlight best practices for those involved in offboarding employees.
✅Check out Factorial’s Onboarding & Offboarding Feature
The Meaning of a Notice Period
A notice period is the minimum amount of time that an employee or employer needs to give before terminating a contract of employment. An employee must give notice if they decide to resign from their post. This period ensures that the company has time to prepare for its departure. This usually includes recruiting and training a replacement and managing the handover of duties. If you are unable to hire a new candidate before a resigning employee departs then the notice period gives you time to delegate their tasks to other colleagues.
Similarly, as an employer, you must give notice if you decide to dismiss an employee or make them redundant (unless they choose to pay them in lieu of notice). If you fail to do so it could be classed as unfair dismissal and the employee could file a claim against you with an employment tribunal. The only exception to this is if you dismiss an employee due to gross misconduct (more on this below).
You should detail your company’s notice periods in your employee contracts of employment. If you chose not to define specific notice periods then you must comply with the statutory minimum period set by law.
Notice Periods in the UK
When it comes to employees on full-time contracts, there are two types of notice periods recognised by UK employment law: statutory and contractual notice periods. The statutory period establishes a minimum notice period that employers and employees must give when terminating an employment contract. However, most companies choose to define a longer period in an employee’s contract. This is usually set at a minimum of two weeks, although it depends on the length of service and seniority.
In the case of fixed-term employees, contracts automatically terminate without notice at their end date. If the employer chooses to end a fixed-term contract before the end of the established employment period, then they must also give notice.
Another type of notice period governed by law is garden leave. If you decide to put an employee on garden leave, they must stop working for the duration of their notice period. Employers usually reserve this for more senior members of staff, such as directors and other executives. You can also pay your employee in lieu of notice. In both cases, you must provide your employees with full pay and benefits.
Finally, according to UK law, employers are entitled to dismiss without notice in the case of gross misconduct. Reasons might include theft, gross negligence, or serious misconduct. Employees also have the right to resign without notice if they believe their employer is in a serious breach of contract (such as providing a hostile work environment). This is known as constructive dismissal, and employees have the right to file an Industrial Tribunal claim for contract breach.
Legal Requirements in the UK
In the UK, the Employment Rights Act 1996 sets out the legal requirements for notice periods. The key thing to remember is that if an employee has worked continuously for at least one month, there is a statutory requirement that both the employer and the employee must give a specific amount of minimum notice, depending on how long the employee has worked there.
For employers dismissing an employee, the statutory minimum is:
- one week’s notice if the employee has worked there for between one month and two years
- one week’s notice per year of continuous service if employed between 2 and 12 years
- a maximum of 12 weeks’ notice if employed for 12 years or more
For employees resigning from an organisation, they must give at least one week’s notice if their employment has lasted for more than one month, or follow the expectations set out in their contract.
While statutory requirements must be adhered to, most employment contracts include their own notice periods, known as contractual notice periods. These can be longer than the statutory minimum, but not shorter than the law provides, and are enforceable as part of the contract terms. Where there are no notice periods in the contract, employees and employers must give the statutory minimum notice. The only time a notice period does not apply is when there is gross misconduct leading to immediate dismissal.
If either an employer or an employee fails to give the required notice period, this may constitute a breach of contract with legal consequences.
Best Notice Period Practices
When it comes to managing notice period, several best practice tips can help ensure a smooth experience for both employer and employee:
1. Ensure Notice Requirements and Acknowledgements are in Writing
Check all contracts to ensure they clearly specify the standard notice period for both the employer and the employee, how notice should be given, and whether the employer may use garden leave or PILON. It’s also worth checking that each employee has a copy of their contract.
When an employee resigns or is dismissed, send a short written note confirming the day the information was received, the agreed final working day, and the expectations during the notice period. Using a template can ensure consistency and save time.
2. Ask the Employee to Create a Structured Handover Plan
A good handover plan is one of the most effective ways to ensure a smooth transition. It should include the status of any current projects, key contacts and stakeholders, details of systems, logins and documents, and any training requirements for temporary cover.
Once the employee has created the plan, set up a meeting to talk it through so you can be clear what the employee sees as crucial to their role, any workflow shortcuts or bottlenecks, and any other information you might not know from the plan. With the employee’s agreement, document this meeting.
3. Protect the Business Where Necessary
When you know an employee is leaving a role, immediately conduct a risk assessment for any potentially sensitive information. Consider whether garden leave or PILON (pay in lieu of notice) is appropriate and whether you need to restrict access to any systems.
Use the exit interview wisely by creating a list of structured questions. These meetings are a chance to learn more about cultural, process, or management issues, information which can be fed into plans to improve retention rates.
4. Consider the Emotional Impact for the Team and the Departing Employee
Departures and change can be very unsettling for all concerned. Communicate clearly and promptly with all parties, set expectations around workload redistribution within the team, and avoid panic-driven decisions. Holding a team meeting to allow space for discussion and questions is a good starting point.
Remember that how you manage an employee’s exit impacts future rehiring, word-of-mouth recommendations, and reviews on sites such as Glassdoor. Treat the departing colleague with respect by giving them the support and time to hand over properly and say goodbye to their colleagues. It is a good idea to check in with them mid-notice period to address any concerns and, if possible, to have a final short meeting on the final day as a last debrief.
5. Keep Clear Records and Payroll Details
For legal reasons, it is essential to keep records of the process, including the resignation or dismissal letter, confirmation of notice, any variations in agreements, and handover documents. It’s also essential to ensure that the final pay is correct and includes any outstanding holiday and benefits. There may also be company property that needs to be returned. Keeping an end-of-employment checklist ensures that nothing gets missed.
Notice Period Calculator
To calculate an employee’s notice period you need to take a number of aspects into account. Firstly, as we mentioned above, there is a statutory minimum notice period that you must offer your employees. Unless you have established a longer notice period in an employee’s contract, you need to comply with the statutory minimum notice periods:
- One week’s notice for any period of continuous employment between one month and two years
- One week of notice for each additional year of continuous employment (between two and 12 years)
- 12 weeks’ notice if employed continuously for 12 years or more.
This is the absolute minimum period you must comply with. However, most companies define a longer notice period. Longer notice periods benefit the employer as they have more time to find a replacement. They also benefit employees as they have increased job security. Companies that offer shorter notice periods tend to have higher rates of turnover for this reason.
Fixed-term employees have the right to a minimum notice period of 1 week if they’ve worked continuously for at least 1 month. If a fixed-term employee has worked continuously for over 2 years they are entitled to 1 week’s notice for each year worked.
Finally, your employees can take their annual leave during their notice period. They are also entitled to their standard company benefits (such as sick pay and other employment benefits). In all cases, you must pay your employees full pay until the last day of their notice period.
Notice period comparison chart
| Contract Type | Is Notice Required? | Statutory Notice Required? | Contractal Notice Rules |
| Full-time | Yes |
1 week after 1 month of service
After 2 years of service, 1 week per year worked up to 12 weeks max |
Set out in the contract, but usually 3-6 months. If nothing is included in the contract, statutory rules apply. |
| Part-time | Yes | Same as full-time workers | Contract may have shorter notice periods than for full-time workers; legally, employment rights are the same. |
| Fixed-term | No | None – contract ends automatically | Notice is required only if the contract specifies it for early termination of the fixed-term contract. |
| Temporary (including casual) | Varies | Depends on whether the person is an employee | Depends on the working agreement; agency workers may have different contractual terms depending on their agreements |
| Zero hours | Sometimes | Depends on how the person is classified and the length of service | Usually short or no contractual notice; many zero-hours contracts define staff as workers rather than employees, in which case statutory requirements do not apply |
| Probationary employees | Yes | Statutory notice applies if they have worked for over a month | Contracts often allow for shorter periods of notic,e eg, one week or even 48 hours |
What happens with holiday entitlement?
Once an employee has handed in their letter of resignation, if they still have holiday left you must prorate this unused time off. This money should be added to employees’ salaries at the end of the month.
Resignation with Notice Periods
When an employee chooses to hand in their notice they must give you a resignation letter. This applies even if the matter has been discussed in person. There are a number of details that they must include in this letter:
- Name and date
- Contact information
- The position the employee is resigning from
- Reason for leaving
- When the resignation will take effect
- Their notice period and the last day they will work
- The intention to complete a handover (ideally)
- Signature
It is important to clarify the process for resigning from your company’s policies. That way, employees will know what information they need to include in their resignation letters. This will then serve as written proof of notice and protect both parties in the event of potential future disputes.
The offboarding process
When employees leave, a lot of managers do not realise the importance of conducting a solid offboarding process. This is just as significant as the onboarding process! Going through the offboarding process is an excellent opportunity for managers to receive honest feedback. As employees are halfway through the door, they won’t be scared to say what’s on their minds, which can help the company to develop further.
Why not download our free offboarding checklist to make sure you are asking all the necessary questions?
Every time you offboard an employee, you need to hire a new one. Did you know Factorial’s applicant tracking software improves your recruiting process by helping you create career pages that attract more high-calibre candidates?
UK notice periods FAQs
Can employees resign without a notice period in the UK?
In most cases, an employee cannot resign without giving their notice. How long they need to provide will depend on what is included in their contract. However, if there is no written contract, the employer has committed a serious breach of contract, or the employer agrees to waive the notice period, an employee may be able to resign without serving the notice period.
What is a statutory notice period?
A statutory notice period is the notice period set out in law. It differs from the contractual notice period, which refers to the notice period set out in the contract of employment.
Can you dismiss an employee without notice in the UK?
Under UK law, you can dismiss an employee without notice only for gross misconduct. Where gross misconduct is involved, employers can terminate an employee’s contract without notice.
Are employers required to pay employees once they’ve given their notice period?
Yes, under UK employment law, employers are required to pay employees once the employee has given in their notice and is working during the notice period.
Can employees refuse to work during their notice period?
Employees are expected to work during their notice period if their contract requires it. Refusing to work during the notice period may constitute a breach of contract. In these cases, the employer may reduce pay, request compensation from the employee and consider changing their reference.
However, there may be situations in which both parties agree that an employee may leave early without serving their full notice. In some cases, an employee may be put on garden leave, meaning they remain employed and paid but do not work during their notice period.
Can employers force their employees to go on garden leave?
Garden leave is when an employee is still being paid but is not required to perform their duties. Garden leave is used to restrict employees from accessing sensitive information and prevent them from joining a competitor until the notice period ends.
Garden leave is only allowed where both parties agree to it contractually. Employers can force their employees to go on garden leave only when their contract includes a clause covering it. If the contract does not include this clause, placing someone on gardening leave without their consent can be considered a breach of contract.
