Notice period when leaving a job

Exit package negotiation - a guide for employees

A notice period is a legally recognised part of ending employment, designed to give both employer and employee time to prepare for the change. Understanding whether statutory or contractual notice applies, following the correct procedures, and keeping records in writing can help ensure a smooth and lawful exit from your role. If you are unsure of your notice obligations or your employer’s response, seeking legal advice before resigning can help you protect your rights and avoid unnecessary disputes.

Understanding notice periods

What a notice period actually means

A notice period is the amount of time that must pass between when you or your employer gives notice to end your employment and when your employment officially comes to an end. It ensures both parties have time to prepare for the change — whether that means you finding another role or your employer arranging cover or recruitment.

Notice periods are usually set out in your employment contract, but even if no written contract exists, statutory rules under UK law still apply.

Statutory minimum notice under UK law

Under section 86 of the Employment Rights Act 1996, employees and employers have minimum notice rights. If you have been employed for one month or more, you must give your employer at least one week’s notice when resigning.

If your employer ends your employment, they must give you:

  • One week’s notice if you’ve worked between one month and two years.
  • One additional week for each full year of employment between two and twelve years.
  • A maximum of twelve weeks’ notice after twelve years or more of service.

These are minimum statutory periods — your employment contract may provide longer notice, but not shorter.

Contractual notice vs statutory notice

What your employment contract says

Most employees have a notice clause in their employment contract, which may specify a longer period than the statutory minimum. For example, a contract might require an employee to give one month’s notice, or three months for senior staff.

You are legally bound by this contractual notice period unless your employer agrees to shorten it. If you leave without giving the required notice, it could be considered a breach of contract.

Which notice applies – the longer of the two

If your contractual notice period is longer than the statutory minimum, the contractual term takes priority. If it is shorter, the statutory minimum applies instead. Employees should always check which is greater before resigning to ensure compliance with the law.

Resigning – giving notice as an employee

How to resign correctly (written vs verbal)

While you can give notice verbally, it’s advisable to resign in writing to create a clear record of the date notice was given. Your resignation letter or email should confirm that you are giving notice to terminate your employment, specify your intended final working day, and refer to the notice period in your contract if relevant.

Once notice has been given, it generally cannot be withdrawn unless your employer agrees.

When notice starts and what counts as time served

Notice usually starts the day after you inform your employer, unless otherwise agreed. For instance, if you hand in notice on a Monday, your notice period typically starts on Tuesday. Bank holidays and weekends count toward the notice period unless your contract specifies working days only.

Dismissal or redundancy – notice given by your employer

Employer’s minimum notice obligations

When your employer dismisses you, they must comply with at least the statutory minimum notice period unless you are dismissed for gross misconduct. Employers may provide longer contractual notice depending on your seniority or role.

Notice must be either worked or paid in lieu. During this period, you remain an employee and are entitled to your usual pay and benefits.

What changes in redundancy or summary dismissal

In redundancy situations, the same minimum notice requirements apply. Your employer may ask you to work your notice period or pay you instead of notice (known as pay in lieu of notice, or PILON).

In cases of summary dismissal for gross misconduct, your employer may dismiss you immediately without notice or pay, but only if the misconduct is serious enough to justify it.

Working your notice period

Your rights and obligations during the notice period

You are generally expected to continue performing your duties during your notice period as normal. Your usual terms and conditions remain in effect, including working hours, pay, and benefits. Employers should continue to pay salary and provide accrued holiday entitlement until the final day of employment.

You can take any remaining annual leave during your notice period if agreed, but your employer may refuse or require you to take holiday instead of working.

Garden leave and pay in lieu of notice (PILON)

Sometimes employers prefer an employee not to work their notice, especially if they have access to sensitive information or client relationships. In these cases, you may be placed on garden leave, where you remain employed and continue to be paid but do not attend work.

Alternatively, your employer may end your employment immediately and make a payment in lieu of notice (PILON) equivalent to the salary you would have earned during the notice period. The right to PILON usually depends on the terms of your contract.

Leaving early or failing to give proper notice

Consequences of not giving required notice

If you leave without giving the required notice, this may be a breach of contract. Your employer could, in theory, take legal action for damages if they suffer financial loss as a result — though in practice this is rare. More commonly, the employer might withhold unpaid wages or refuse to provide a reference until matters are resolved.

When it may be negotiated or waived

In some circumstances, you can agree with your employer to leave earlier than planned. Employers often prefer to agree an earlier exit if it suits both sides. Any such agreement should be confirmed in writing, stating the agreed leaving date to avoid later disputes.

Notice periods for fixed-term, probation & special cases

Resigning during a probationary period

Probationary contracts often have shorter notice periods, sometimes as little as one week. The terms of your contract will determine how much notice you or your employer must give. Employers can also end the contract with minimal notice during probation, provided they comply with statutory minimums.

Notice for fixed-term or short-term contracts

If you are employed under a fixed-term contract that specifies an end date, the contract will usually terminate automatically at that date without notice. However, if either party wishes to end the contract early, the notice terms set out in the agreement must be followed.

Practical steps for employees before you hand in notice

Check your contract and company policy

Before resigning, review your employment contract and any staff handbook or policy documents. Check:

  • How much notice you must give.
  • Whether you can take remaining holiday during notice.
  • Whether your employer can place you on garden leave or pay in lieu.

This helps you plan your departure and avoid breaching your obligations.

What to keep in writing and what to clarify

Always put your resignation and agreed leaving date in writing. Keep copies of your correspondence, your contract, and any response from your employer confirming the arrangements. Written confirmation helps protect you if any disputes arise over notice, final pay, or holiday entitlement.

Chris Hadrill
Chris HadrillEmployment solicitor
Chris is a Partner in the employment team and advises employees on employment disputes and settlement agreements

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