UK Notice Periods 2026: Statutory Rules for Employers

Quick Answer: What is the Statutory Notice Period?

Statutory notice period in the UK depends on length of continuous service:

Example: An employee with 7 years' service is entitled to 7 weeks' statutory notice from the employer. The employee only needs to give 1 week's notice (unless their contract states otherwise).

Use our notice period calculator for quick calculations.

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Statutory vs Contractual Notice

Statutory Notice

Statutory notice is the legal minimum set by the Employment Rights Act 1996. It cannot be reduced by contract. Even if an employee signs a contract agreeing to a shorter notice period, the statutory minimum still applies.

During the statutory notice period, the employee is entitled to:

• Their normal pay (or average pay if hours vary)
• Continued pension contributions
• All contractual benefits (car allowance, health insurance, etc.)

Contractual Notice

Most employment contracts specify a longer notice period than the statutory minimum. Common contractual notice periods:

The longer of statutory or contractual notice always applies. If the contract says 1 month but statutory entitlement is 7 weeks, the employee gets 7 weeks.

Sample Contract Clause

A well-drafted notice clause should be clear and unambiguous:

"Either party may terminate this employment by giving not less than [X months] written notice. This does not affect the employer's obligation to give the statutory minimum notice where this exceeds the contractual period."

Avoid vague language like "reasonable notice" — tribunals interpret this based on seniority, industry norms, and the time needed to find a replacement, which can produce unpredictable results.

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Notice Periods During Probation

Many contracts specify a shorter notice period during probation — commonly 1 week from either side. This is lawful provided it meets the statutory minimum.

Key points:

• An employee with less than 1 month's service has no statutory right to notice
• After 1 month, 1 week's statutory notice applies regardless of what the probation clause says
• Probationary employees with less than 2 years' service generally cannot claim unfair dismissal (with exceptions for automatically unfair reasons such as discrimination)
• Best practice is still to give notice in writing, even during probation

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Payment in Lieu of Notice (PILON)

PILON allows the employer to end employment immediately by paying the employee for their notice period instead of having them work it.

Tax Treatment of PILON

Since April 2018, PILON payments are always taxable (income tax and NI), regardless of whether the contract contains a PILON clause. This applies to the basic pay element of the notice period. The first £30,000 of any termination payment above and beyond the notice pay remains tax-free.

Key Rules

• If the contract contains a PILON clause, the employer can make the payment without breach of contract
• Without a PILON clause, ending employment without notice is technically a breach of contract (even if you pay)
• PILON should cover basic pay plus any contractual benefits the employee would have received during notice
• The employee's P45 should reflect the PILON payment

Calculating PILON

PILON is calculated based on what the employee would have earned during the notice period:

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Garden Leave

Garden leave is where the employee remains employed during their notice period but is not required to attend work or perform duties.

How Garden Leave Works

• The employee remains on the payroll with full pay and benefits
• They cannot work for another employer during this period
• They must remain available if the employer needs them
• Restrictive covenants continue to apply
• Holiday entitlement continues to accrue

When to Use Garden Leave

Garden leave is most commonly used when:

• The employee is joining a competitor
• They have access to sensitive commercial information or client relationships
• There is a risk they could recruit other staff during their notice period

Garden Leave Clause

A garden leave clause in the employment contract is strongly recommended. Without one, you may not be able to enforce garden leave, and the employee could argue they have a right to work. Courts have held that keeping an employee away from work without a contractual right to do so can amount to a breach of contract.

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Holiday During Notice

Employees continue to accrue annual leave during their notice period.

Note: if an employee has taken more holiday than they've accrued at the point of termination, the employer can deduct the overpayment from final pay — but only if the contract allows this. Without a contractual right to deduct, recovery is difficult.

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Employee Obligations During Notice

Employees are expected to:

• Continue working normally unless placed on garden leave or given PILON
• Cooperate with handover — hand over responsibilities, document processes, and brief their successor
• Return company property — laptops, phones, access cards, keys
• Respect confidentiality — duties of confidentiality survive the notice period and beyond
• Not compete if subject to restrictive covenants

An employee who refuses to work their notice period is technically in breach of contract. While employers rarely sue for this, it can affect the reference provided and any outstanding payments.

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Wrongful Dismissal: What Happens if You Get Notice Wrong

Wrongful dismissal is a breach of contract claim that arises when an employer dismisses an employee without giving proper notice (or payment in lieu).

Unlike unfair dismissal, wrongful dismissal:

• Has no qualifying service period — even day-one employees can claim
• Can be brought in the county court or High Court (not just employment tribunal)
• Damages are limited to what the employee would have earned during the notice period

To avoid wrongful dismissal claims:

1. Always calculate notice entitlement correctly (the longer of statutory or contractual)
2. Put any dismissal notice in writing
3. If using PILON, ensure the contract permits it
4. The only exception is gross misconduct, which justifies summary dismissal (no notice)

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Common Employer Mistakes

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Managing Notice Periods with Grove

Grove automates notice period management:

• Contractual notice tracking from employee records
• Notice period calculator based on service length
• Offboarding checklists triggered when notice begins
• Final pay calculations including accrued holiday
• Document generation for notice confirmation letters
• Task assignment for handover activities and IT asset recovery

Use our free notice period calculator or get started with Grove.