Notice Period
A notice period is the amount of time an employer or employee must give the other party before ending a contract of employment. Statutory minimum notice periods apply (one week per year of service, up to 12 weeks), and employment contracts often provide longer contractual notice. Employees must also give at least one week's notice after one month of service unless their contract requires more.
Statutory minimum notice periods under the Employment Rights Act 1996 are: 1 week after 1 month's service, then 1 week per complete year of continuous employment up to a maximum of 12 weeks. Employees must give at least 1 week's notice after 1 month of employment regardless of contract length. Employment contracts often provide longer 'contractual' notice — the higher of statutory or contractual notice applies. An employer may offer Pay in Lieu of Notice (PILON) instead of requiring the employee to work the notice period; PILON is taxable as income since April 2018. An employee on garden leave during notice retains all contractual entitlements. Failing to give proper notice is a breach of contract, meaning the other party can sue for the value of the notice period (less any mitigation). Notice periods can be extended by mutual agreement.