Notice period rights — what you're entitled to by law

Being denied proper notice is a breach of contract.

Can my employer reduce my notice period?

Only by written agreement. If your contract says 4 weeks and the employer asks you to agree to 2 weeks, you can refuse. If you agree in writing, the shorter period applies. Without agreement, the contractual period holds.

What if my employer won't let me work my notice period?

If your contract has no PILON clause and the employer forces you to leave without pay, this is wrongful dismissal. You can claim damages equal to your notice pay. If there is a PILON clause, the employer can use it (with agreement or if the clause is triggered), and you get paid in lieu.

What happens to my notice period if the company goes into administration?

Notice continues to run. However, the employer's ability to pay may be affected. You may be entitled to claim unpaid notice from the National Insurance Fund if the employer cannot pay.

I'm sick during my notice period — do I still have to work it?

Follow your usual sickness reporting procedure. Sick leave does not automatically extend your notice. Pay depends on whether you are resigning or being dismissed and on your contractual notice compared with statutory notice. Full normal pay is not guaranteed: where contractual dismissal notice is at least one week longer than statutory notice, the applicable sick pay may be all that is due. Check the Acas notice-pay guidance or ask Acas about your circumstances.

Should I try to negotiate a longer notice period before joining?

That depends on your situation. Longer notice can protect you if dismissed quickly, but longer notice also locks you in if you want to leave. For senior roles or insecure sectors, negotiating shorter notice can be valuable. Always get legal advice for tailored guidance.

Is a long garden leave clause enforceable if the notice period is very long?

Garden leave clauses are enforceable if there is a legitimate business interest (protecting confidential information, preventing competition). However, if the notice period is extremely long (6+ months) and the clause forces garden leave the whole time, a tribunal might find it unreasonably restrictive. Reasonableness depends on the facts.

Can I claim unemployment benefit while on garden leave?

No. You are still employed and being paid, so you are not entitled to unemployment benefit (Job Seeker's Allowance). This is one of the drawbacks of garden leave for the employee.

What notice are you owed? How does PILON work? Can your employer put you on garden leave? Your UK notice period rights explained clearly.

Notice period rights — what you're entitled to by law

Employees are usually entitled to notice when dismissed, with exceptions such as gross misconduct. This guide explains statutory minimums, contractual terms, pay in lieu (PILON), and garden leave — what you owe and what you are owed.

Statutory minimum notice

Contractual overrides

If your contract says more, you get it

Check your contract or agreement

Statutory minimum notice

Employer's notice to employee

Employee's notice to employer

At least 1 week once you have been continuously employed for a month or more (ERA 1996 s.86(2)). Below a month there is no statutory minimum on either side. Some contracts specify longer (e.g. "2 weeks' notice").

The statutory minimum applies if your contract says nothing, or if your contract period is shorter. You always get the longer of the two.

Contractual notice periods

If your employment contract specifies a notice period longer than the statutory minimum, the contractual period applies instead.

You have 5 years' service. Statutory minimum = 5 weeks. Your contract says "4 weeks' notice". You get 5 weeks (the statutory minimum is higher).

You have 2 years' service. Statutory minimum = 2 weeks. Your contract says "3 months' notice". You get 3 months (the contractual period is higher).

Courts rarely imply a notice period longer than statutory unless the contract is explicit or there is a clear business custom (e.g. in your industry or company).

Pay in lieu of notice (PILON)

Pay in lieu of notice (PILON) is a payment equal to your notice pay instead of working the notice period. The employer terminates your employment immediately and pays a lump sum.

PILON clause or agreement

PILON may be provided for in your contract or agreed with you; keep a written record of any agreement. If an employer ends employment without the notice or pay you are entitled to, there may be a wrongful dismissal claim. Dismissal for gross misconduct can be without notice.

How PILON is calculated

PILON = Notice period × daily/weekly/monthly pay. For example: 4 weeks' notice, £500/week salary = £2,000 PILON.

Notice pay is normally subject to income tax and National Insurance. The post-employment notice pay (PENP) rules can also tax notice-equivalent sums within a termination payment even if there is no contractual PILON clause.

Wrongful dismissal claim

If your contract has no PILON clause and the employer refuses to pay notice or let you work it, you can claim damages for breach of contract equal to the notice pay you are owed. This is a wrongful dismissal claim in the civil courts or tribunals (up to £25k).

Garden leave — staying home on full pay

Garden leave is when your employer tells you to stay home (or keep away from the office/work) during your notice period. You remain an employee, remain paid full salary, but are not working.

When garden leave applies

Your contract must permit garden leave, OR you must agree to it. Some senior roles have express garden leave clauses (especially in finance, law, tech). Without a clause or agreement, the employer cannot unilaterally put you on garden leave.

Your obligations during garden leave

Pay and benefits during garden leave

Holiday and notice periods

Holiday continues to accrue during notice

Holiday continues to accrue while you remain employed, including during worked notice or garden leave. PILON normally ends employment immediately, so statutory holiday does not continue to accrue afterwards; check whether your contract provides any additional payment.

Taking holiday during notice

Your employer can require you to take accrued holiday during the notice period (with proper notice to you). You must be paid at your normal rate. Untaken holiday must be paid out at the end of your employment.

Calculate accrued but untaken holiday

On leaving, you are owed:

(Annual holiday entitlement ÷ 12 × months worked in the leave year) − (holiday already taken in that leave year) = days you are owed

Your leave year is the one your contract sets, which is often not January to December. The result is in days; multiply by a day’s pay for the figure that should appear on your final payslip.

Tax on notice pay and damages

Contractual notice pay:

Treated as normal income — subject to full income tax and national insurance.

PILON and post-employment notice pay:

Notice-equivalent pay is normally taxable earnings, including when it forms part of a termination payment.

Other termination compensation:

The £30,000 exemption may apply to qualifying termination compensation, but it does not make notice-equivalent pay tax-free. The PENP rules can apply even without a PILON clause. Ask for the payment breakdown and get tax advice if you are unsure.

Check your final payslip and the treatment of each part of the payment.

GOV.UK explains termination-payment tax

Acas explains notice pay during sickness and other absence

Frequently asked questions

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Employment Rights Act 1996

GOV.UK Employment Tribunals