There is often uncertainty around giving notice and employment notice periods, such as:
- How long it should be
- When it should be given; and
- If it can be withdrawn.
If an employee is dismissed, they have a legal right to be given the appropriate amount of notice, and, if an employee resigns, they must provide the correct notice to their employer.
Both parties must understand their obligations relating to notice to avoid a breach of the contract of employment.
There are two types of notice period:
Statutory Notice
The law sets out the minimum periods of notice that can be given by either party.
Employers should give the employee the statutory minimum notice period depending on the length of employment:
- Between one month and two years’ service – one week’s notice
- Between two and 12 years’ service – one week’s notice for every year worked, up to a maximum of 12 weeks.
For example, an employee who has worked for five years, in the absence of any contractual provision, is entitled to five weeks’ notice.
An employee who has worked for one month or more must give their employer the statutory minimum notice of one week.
Contractual Notice
Contractual Notice is the amount of notice that the employer can set out in the employee’s contract of employment. The contractual notice period can be equal to or longer than the statutory notice period, but never shorter. If the employer sets out a longer contractual notice period, the contractual period will prevail over the statutory notice period.
For example, an employer may state within the contract of employment than an employee must give one month’s notice rather than the statutory minimum one week’s notice.
Dismissal Without Notice
There may be circumstances where an employer can dismiss an employee without notice.
This will be the case when the employee has committed an act of gross misconduct, for example, theft, violence or fraud. The employer should give clear examples of what constitutes gross misconduct and the possible consequences in their disciplinary policy. It is still important for the employer to follow a procedure to ensure the dismissal is fair.
Generally, an employer does not need to give notice of the expiry of a fixed-term contract, however, if the contract is terminated by giving notice before the expiry date, the correct minimum notice should be given. The non-renewal of a fixed-term contract constitutes a dismissal and the employee may be able to claim unfair dismissal if they have over two years’ service.
Where both parties agree, the contract of employment can be terminated with no notice or a much shorter notice period.
The contract of employment may also have an express provision that permits the employer to make a payment in lieu of notice, known as PILON.
Giving Notice
Notice can be given verbally but, to be clear, it should always be confirmed in writing that notice is being given to terminate employment. During the notice period, employees are normally paid their usual pay and benefits as set out in their contract of employment.
Withdrawing Notice
When notice is given by either an employer or employee, it cannot be withdrawn unless both parties agree.
If an employee resigns in the ‘heat of the moment’ and then changes their mind, they should tell the employer immediately and the employer will choose whether to accept the resignation or not. However, the employer can still consider the employee as having resigned.
For more information on notice periods, please contact our Employment Team on 0345 646 0406 or fill in our online enquiry form and a member of our Team will be in touch.