Notice period in the UK: employer obligations and how to manage them

Published Wednesday 19 August 2026

Table of contents

• What is a notice period in the UK?
• What notice must you give by law and contract?
• Are notice periods enforceable in the UK?
• What do you pay during notice?
• When can you dismiss without notice?
• Simplify notice period payroll with Xero
• FAQs on notice period UK

Key takeaways

• Follow statutory notice as the legal minimum, but apply any longer contractual notice.
• Pay normal pay and benefits during notice, including regular overtime and commission where applicable.
• Use payment in lieu of notice or garden leave to manage risk and timing, but only if your contract allows it or the employee agrees.
• Dismiss without notice only for gross misconduct or very short service, and always follow a fair process and record your decisions.

What is a notice period in the UK?

A notice period is the time between giving notice (either by the employer or employee) and the last working day. It sets clear expectations about when employment will end and gives both sides time to prepare.

In the UK, there are two types of notice:

• Statutory notice period UK: The legal minimum set by law
• Contractual notice: The notice period stated in the employment contract

The longer of the two always applies. If your contract says two months but statutory law requires only one week, you must give two months. If statutory notice is longer than what the contract states, statutory notice applies.

Notice covers most employment situations, including resignation, dismissal, and redundancy. Understanding what a notice period is and how it works helps you stay compliant and avoid disputes.

What notice must you give by law and contract?

The notice you're required to give depends on whether statutory minimums or your employment contract applies – whichever is longer always takes precedence. The sections below cover both employer and employee obligations, including what happens during probation and when notice begins.

Statutory notice period UK

The legal minimum notice you must give an employee depends on how long they've worked for you:

• Less than one month: No statutory notice required
• One month to two years: At least one week
• Two years or more: One week for each full year of service, up to a maximum of 12 weeks

For example, an employee with five years' service is entitled to five weeks' statutory notice. This applies to all dismissals, including notice periods for redundancy.

If your contract states a longer notice period, you must follow the contract. The law sets the floor, not the ceiling.

For more detail on statutory redundancy notice periods and pay, see the GOV.UK redundancy guidance.

Contractual notice

Your employment contract may require a longer notice period than the statutory minimum. Common contractual notice periods range from one to three months, with senior roles often requiring three to six months.

Always check the contract before giving or receiving notice. If nothing is specified in the contract , statutory notice applies.

Redundancy notice periods

The statutory notice rules for redundancy follow the same length-of-service tiers as standard dismissal notice. An employee with five years' service is entitled to five weeks' notice, whether you're dismissing them for performance or making them redundant.

It's worth keeping two things separate when handling redundancy. Notice pay is what you pay the employee during or instead of their notice period, calculated the same way as standard notice pay. Statutory redundancy pay is a separate lump sum based on age, weekly pay, and length of service, paid on top of notice pay, and employees qualify after two years' continuous service.

During redundancy, you can ask the employee to work their notice, place them on garden leave, or make a payment in lieu of notice if the contract allows.

How much notice must an employee give

By law, employees must give at least one week's notice if they've been employed for one month or more, unless the contract requires longer.

In practice, the standard notice period for employees in the UK private sector is often one month, though this varies by role and seniority. Senior positions may require two or three months.

During probation, notice periods are typically shorter. In the UK, resignations during a probation period often require one week or less, depending on the contract.

Employees should give notice in writing. Learn more about employee notice obligations.

When does the notice period start

Notice starts the next calendar day after it is given – even if this falls on a non-working day.

Confirm the start and end dates in writing to avoid confusion.

If notice is given verbally, follow up in writing immediately. Clear records protect both parties and ensure the correct notice period is observed.

Are notice periods enforceable in the UK?

Yes, notice periods are legally enforceable in the UK. The Employment Rights Act 1996 sets the statutory minimum notice an employer must give, and any notice period agreed in an employment contract is binding on both parties. If either side fails to honour the agreed notice, they're in breach of contract.

In practice, enforcement works differently depending on who breaks the terms. If you end employment early without giving proper notice, the employee can claim wrongful dismissal and seek damages equal to the pay they would have received during the notice period. If an employee leaves without working their notice, you can deduct pay for unworked days if the contract allows it, or pursue a claim for any financial loss the breach causes.

Pursuing a breach of contract claim through the courts or an employment tribunal is relatively uncommon for short notice periods, as the cost often outweighs the outcome. For senior roles where early departure causes real commercial harm, enforcement is more likely to be pursued.

Learn more about paying employees and complying with UK payroll laws.

Can notice be retracted?

Once you give notice, you can only withdraw it with the other party's agreement. This applies if either an employee hands in their resignation and then changes their mind, or you withdraw a notice of dismissal.

Always confirm any agreement to retract notice in writing, including the revised employment terms if anything has changed.

What do you pay during notice?

Your pay obligations during a notice period depend on whether the employee is working their notice, on sick leave, or on garden leave. The sections below cover the main scenarios you're likely to encounter.

Notice pay

If the employee works their notice period, you must pay normal earnings for contracted hours or patterns, regular overtime, commission, and allowances that form part of normal pay, and benefits per the contract, such as pension contributions and health insurance.

Holiday during notice

Statutory holiday continues to accrue during notice. Depending on the circumstances, you can approve holiday requests during the notice period, pay out untaken holiday on termination calculated according to the contract and law, or require the employee to take holiday during notice by giving written notice, subject to contract terms.

Sick leave in notice

If an employee is sick during notice, you must pay at least statutory sick pay (SSP) if they qualify. Contractual sick pay may apply if the contract or policy requires it.

Follow your sickness policy consistently. If the employee is off sick for the entire notice period, you still owe notice pay or SSP, depending on the contract and statutory entitlements.

Payment in lieu of notice (PILON)

PILON means paying the employee their full notice period as a lump sum, without requiring them to work it. The lump sum should include regular commission and overtime if they form part of normal earnings, calculated using the average over the last 12 weeks. You can only use PILON if the contract includes a PILON clause, or if the employee agrees to accept it.

PILONis subject to tax and National Insurance in the same way as normal pay. For tax treatment, see the HM Revenue & Customs (HMRC) employment income manual on payment in lieu of notice.

Confirm the termination date in writing. PILON ends employment immediately, so the last day is the day notice is given or the date agreed.

Garden leave

Garden leave means the employee remains employed and on full pay (including regular commission, overtime, and benefits) during notice but does not work. You may place them on garden leave to protect client relationships and confidential information, prevent them from starting work with a competitor immediately, or manage the transition smoothly.

During garden leave, you must pay normal salary and benefits, confirm duties (usually none) and any restrictions in writing, remove system access and return company property, and keep the employee on payroll until the termination date.

Garden leave requires a contractual right or the employee's agreement. It is not the same as PILON, as employment continues until the notice period ends.

When can you dismiss without notice?

Summary dismissal – dismissing without notice – is permitted only in limited situations.

Gross misconduct

Gross misconduct is serious wrongdoing that destroys trust and makes continued employment impossible. Examples include theft or fraud, physical violence or threats, a serious breach of health and safety rules, gross negligence, and serious insubordination.

Before dismissing for gross misconduct, you must follow a fair disciplinary process including investigation and a hearing, give the employee a chance to respond to allegations, and document the process and decision throughout.

Unfair dismissal claims can be costly. Always take advice before dismissing without notice.

For more on dismissal, see GOV.UK dismissal guidance.

Less than one month's service

Statutory notice doesn't apply if the employee has worked for less than one month. However, check the contract for any contractual notice requirements.

Even with very short service, you must follow a fair process if dismissing for misconduct or performance.

Fixed-term contracts

Fixed-term contracts usually end on the agreed date without notice. However, if you terminate early, you must follow contractual and statutory notice rules.

Check the contract for any notice provisions. If the contract is silent, statutory notice applies if the employee has worked for one month or more.

Simplify notice period payroll with Xero

Managing notice pay, holiday, and deductions is easier when your payroll and accounting are in one place. With Xero, you can keep accurate records, run payroll in line with UK rules, and see the impact of notice payments on your cash flow.

Get one month free to try Xero and streamline how you handle notice periods and employee departures.

FAQs on notice period UK

Here are answers to common questions about UK notice periods, covering employer and employee obligations, pay, and timing.

How much notice must an employer give in the UK?

You must give at least the statutory minimum notice or longer if specified in the employee's contract.

Is 3 months' notice normal in the UK?

Notice periods vary by industry, role, and seniority. Three months' notice is common for senior roles or positions with significant responsibility. For most employees, one to two months is more typical.

Is 2 weeks' notice enough in the UK?

Two weeks' notice is less common for standard roles. As an employer, you'll usually want to set at least one month's notice in contracts to give yourself enough time to manage the transition. You might use two weeks’ notice for probationary or very junior roles if that fits your business needs.

Should I use PILON or garden leave?

Use payment in lieu of notice when you want employment to end immediately and you can afford a lump-sum payment. Use garden leave if you want to keep the employee bound by their contract during notice – for example, to prevent them from joining a competitor immediately – and where spreading the cost across the notice period suits your cash flow better than a lump sum.

Can an employee refuse to work their notice?

If the employee refuses to work their notice, they are in breach of contract. You can deduct pay for unworked days if the contract allows it, claim damages for any loss caused by the breach, or accept the breach and treat employment as ended. In practice, pursuing damages is rare unless the breach causes significant harm. Always take advice before acting.

Can I retract a notice of dismissal?

You can only withdraw a notice of dismissal with the employee's agreement. If the employee does not consent, the original dismissal stands and the notice period continues as given.