Notice periods in the United Kingdom, explained
Reviewed by Mellow Editorial Team, HR & payroll content team
Notice periods in the UK are a legal and contractual requirement that give both employer and employee time to prepare for a separation. The rules come from two sources: the statutory minimums set by law, and the contractual terms agreed in writing — whichever is longer applies.
Statutory minimum notice periods
The Employment Rights Act sets a floor below which no contract can fall. Employees are entitled to:
- One week's notice after one month of continuous employment
- One week per completed year of service, up to a maximum of 12 weeks, after two years
So an employee with seven years' service is entitled to at least seven weeks' notice. An employee with 15 years' service gets 12 weeks — not 15, because the statutory maximum caps at 12.
Employees must give a minimum of one week's notice to their employer, regardless of length of service. This is a fixed statutory minimum and does not increase over time.
These are floors, not targets. Most employment contracts — especially for senior or specialist roles — set longer notice periods than the statutory minimums.
Contractual notice periods
A contract can extend notice periods in either direction, and usually does. A common structure for an office-based employee might be one month's notice during a probationary period, rising to three months once the role is confirmed. Senior roles often carry six months or more on each side.
The rule is simple: if the contractual notice period is longer than the statutory minimum, the contractual period applies. If a contract tries to give less than the statutory minimum, the statutory minimum overrides it.
When setting contractual notice periods, think practically. A longer notice period gives you more time to hire and hand over, but it also means a longer, potentially uncomfortable period if the relationship has broken down. It can also create complications if the employee finds a new role quickly and asks to leave early.
Payment in lieu of notice (PILON)
If you want someone to leave immediately rather than work their notice, you can make a payment in lieu of notice — provided the contract includes a PILON clause. This pays the employee their contractual entitlement without them physically working the period.
Without a PILON clause, terminating employment immediately without agreement is technically a breach of contract, even if you intend to pay the employee. The distinction matters for tax treatment: contractual PILON payments are taxable earnings and subject to income tax and National Insurance in the normal way.
Always check the contract before making any payment and, where the situation is complex or contested, take legal advice.
Garden leave
Garden leave is a different arrangement. The employee remains employed and on the payroll — continuing to receive full pay and benefits — but is asked not to come into work and, typically, not to work for anyone else. This is commonly used where the employee has access to sensitive client relationships, commercially confidential information, or where you want to delay the start of any post-termination restrictions.
Garden leave must be permitted by the contract, or agreed by both parties at the time. It is not something you can impose unilaterally without contractual authority. The employee on garden leave remains entitled to all their normal pay, pension contributions, and benefits until the end of the notice period.
Dismissal without notice
An employee can be dismissed without notice only in cases of gross misconduct — behaviour serious enough to fundamentally breach the employment relationship. Examples typically include theft, serious harassment, or deliberate damage to company property.
Even in clear gross misconduct cases, following a fair procedure still matters. The Employment Rights Act 2025 has strengthened day-one rights for employees, meaning the circumstances in which dismissal is straightforward — without risk of an employment tribunal claim — have narrowed. A fair investigation, an opportunity for the employee to respond, and a right of appeal remain expected practice regardless of service length.
Dismissing without notice and without a fair process, even where the misconduct seems obvious, significantly increases the risk of a successful unfair or wrongful dismissal claim.
Practical points for employers
A few things worth keeping in mind when managing notice periods in practice:
Get it in writing. The notice period should be clearly stated in the employment contract from day one, with any increase on passing probation spelled out explicitly.
Record start dates carefully. Statutory notice entitlements depend on continuous service. An accurate start date in your records avoids disputes.
Don't assume a resignation waives rights. An employee who resigns and works their notice remains entitled to all statutory and contractual rights during that period, including sick pay, holiday accrual, and any pension contributions.
Agree early departures in writing. If both sides want to shorten the notice period, confirm any agreement in writing. Verbal agreements are harder to rely on later.
This article is general information, not legal advice. For advice specific to your circumstances, consult an employment solicitor.
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