Notice periods are a fundamental part of the employment relationship. UK law sets statutory minimums that apply regardless of what the contract says — you can agree to longer notice periods but never shorter ones. Understanding these rules is essential for managing exits cleanly and avoiding wrongful dismissal claims.
Statutory Minimum Notice Periods
Employer to Employee
- Less than 1 month's service: No statutory notice required
- 1 month to 2 years: 1 week's notice
- 2 to 12 years: 1 week per complete year of service (e.g., 5 years = 5 weeks)
- 12+ years: 12 weeks (the statutory maximum)
Employee to Employer
After one month of continuous employment, an employee must give at least one week's notice. This statutory minimum does not increase with service — it remains one week regardless of how long the employee has worked for you. However, a longer contractual notice period can be agreed.
Contractual vs Statutory Notice
The contract can specify notice periods that are longer than the statutory minimum. Where the contractual notice is longer, the contractual period applies. Where the contract specifies less than the statutory minimum (or is silent), the statutory minimum applies automatically.
For senior roles, contractual notice periods of one to six months (or occasionally longer) are common and enforceable.
Payment in Lieu of Notice (PILON)
If the contract contains a PILON clause, the employer can pay the employee for their notice period instead of requiring them to work it. Without a PILON clause, paying in lieu is technically a breach of contract — though in practice, most employees welcome the payment. The tax treatment of PILON has changed in recent years, and all payments in lieu are now subject to tax and NI.
When No Notice Is Required
An employer can dismiss without notice only in cases of gross misconduct — and even then, a fair investigation and disciplinary process must be followed. Summary dismissal without proper process is likely to result in an unfair dismissal claim.
Getting notice periods right in your contracts and exit processes is crucial. Our contracts service ensures your notice provisions are legally sound. Speak to us for a free contract review.