Statutory notice periods: employer and employee.
The law sets a minimum notice period on both sides once someone has worked for a month: from 1 week up to 12 weeks from the employer, and 1 week from an employee who resigns. Here is how the minimums work, and how they sit with the contract.
Notice, by law
What section 86 sets
1 week
After one month
12 weeks
Employer, at most
1 week
Employee gives
- One month to two years Employer gives at least 1 week 1 week
- Two to twelve years A week for each year employed Week a year
- Twelve years or more Employer gives at least 12 weeks 12 weeks
- A longer contract The contract can give more Check
Notice you must give
Section 86 of the Employment Rights Act 1996 sets the least notice an employer must give to end the employment of someone with a month or more of continuous employment:
- 1 week if they have been employed for a month but less than 2 years;
- a week for each year of continuous employment if they have been employed for 2 years but less than 12, so 5 weeks after 5 years;
- 12 weeks if they have been employed for 12 years or more.
So the employer’s minimum stops rising at 12 weeks, however long someone stays. Section 86 sets nothing for someone who has worked for you for less than a month.
A fixed-term contract of a month or less is treated as open-ended once the person has been employed for 3 months or more, so the same minimums apply.
Notice staff must give
An employee who has been employed for a month or more must give at least 1 week to resign. Unlike the employer’s, it doesn’t grow with service.
Their contract can ask for more, and GOV.UK warns employees that giving too little notice, or giving it the wrong way, may breach their contract.
When the contract says more
The statutory periods are a floor. A contract can give more notice than the law, never less: a contract term giving shorter notice is overridden by section 86. GOV.UK puts it simply: an employer may give more than the statutory minimum, but cannot give less.
So check both. Our notice period calculator compares the two for one person and gives the date notice ends.
Section 86 doesn’t stop either side waiving their right to notice, or accepting pay in its place. Nor does it affect the right of either side to end the contract without notice because of the other’s conduct.
Giving notice, and when it starts
- In writing or by word of mouth. The contract says whether notice must be in writing. If it doesn’t, notice can be given verbally, though GOV.UK suggests writing it down if it may need to be referred to later.
- When it starts. Notice usually runs from the start of the day after it is given.
Pay during notice, and pay in lieu
- Normal pay. Someone working their notice usually gets their normal rate of pay, with bonuses and commission unless their contract says otherwise.
- Notice pay on redundancy is based on their average weekly pay over the 12 weeks before notice starts.
- Pay in lieu of notice. Employment can end without notice being worked if the contract includes pay in lieu. They then get all the basic pay they would have had during the notice period. You can offer it where the contract doesn’t mention it, and an employee who resigns only has to take it if their contract provides for it or they agree.
Sources
- Employment Rights Act 1996, section 86 (minimum notice from employer and employee)
- Redundancy: notice periods (GOV.UK)
- Handing in your notice: giving notice (GOV.UK), with its page on pay during your notice period
This guide is general information, not legal advice. For one person’s situation, ask Acas (0300 123 1100, free) or a solicitor.
Notice worked out on every leaving.
KivoHR compares the contract with the law, counts from continuous service, and gives the date notice ends.