What Is a Notice Period and How Do You Calculate One?

A notice period is the time between giving notice and a contract ending. In employment, the law may require a minimum notice period.

This explanation focuses on England and Wales.

Lowdown

When an employer dismisses an employee or makes them redundant, the statutory minimum notice generally depends on their length of service:

• One month to less than two years: one week.
• Two to twelve years: one week for each complete year of service.
• Twelve years or more: twelve weeks.

An employment contract can provide for longer notice, but not less than the statutory minimum.^[1]

An employer may dismiss an employee without notice or notice pay for gross misconduct, such as theft or fraud. However, the employer should still follow a fair disciplinary process.^[1]

For example, an employee dismissed after four years and nine months of service is normally entitled to at least four weeks' notice, unless their contract provides for longer.^[1]

Why It Matters

Employees who resign after at least one month's service must normally give at least one week's notice, unless their contract requires more. Exceptions may apply, including where the employer has seriously breached the contract or both sides agree otherwise.^[1]

Check when the notice period starts. If the contract does not say otherwise, resignation notice normally starts the day after it is given. Notice of dismissal given in person normally starts the following day, while written notice generally takes effect once the employee has had a reasonable opportunity to read it.^[2]

For freelancers, contractors and other commercial relationships, check the termination and notice clauses rather than assuming employment rules apply.

An employee who leaves without giving the required notice may breach their contract. They are still generally entitled to pay for work completed and accrued but untaken statutory holiday, although lawful deductions may apply.^[3]

Our Conclusion

Check how much notice is required, when it starts and how it must be given. Employment and commercial contracts do not follow the same rules.

Sources

[1] Acas, Dismissal or redundancy — Notice periods and Resignation — Notice periods

[2] Acas, When the notice period starts

[3] Acas, Leaving without working notice and Holidays and final pay