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?

If you are genuinely unfit, sick leave applies during notice. The notice period can be extended by the duration of illness (depends on contract terms) or run in parallel. You remain paid full salary. Document medical evidence.

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

When your employment ends, you are entitled to notice. 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

Only valid if in your contract

Statutory minimum notice

Employer's notice to employee

Under 1 month service:
No statutory minimum. Can dismiss with no notice (contract may require more).
1 month to 2 years service:
1 week minimum notice.
1 week per complete year of service, capped at 12 weeks (e.g. 5 years service = 5 weeks; 15 years service = 12 weeks).

Employee's notice to employer

At least 1 week, regardless of service length. 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 required

A PILON clause must exist in your contract for the employer to use it lawfully. Without a PILON clause, if the employer forces you to leave immediately without pay, this is wrongful dismissal.

How PILON is calculated

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

PILON is subject to income tax and national insurance. Unlike damages for wrongful dismissal (where the first £30k may be tax-free), contractual PILON is fully taxable.

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

You remain employed and bound by your contract terms.
Non-compete, confidentiality, and other restrictive covenants continue to bind you.
You cannot work for a competitor (unless the clause explicitly ends).

Pay and benefits during garden leave

You must be paid your full salary.
Benefits (health insurance, pension contributions) continue.
You cannot claim unemployment benefit (you are still employed and paid).

Holiday and notice periods

Holiday continues to accrue during notice

You continue to earn holiday during your notice period, whether you work it or are on garden leave or PILON.

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 current year) + (holiday already taken in current year) = what you are owed

Tax on notice pay and damages

Contractual notice pay:

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

PILON (if in contract):

Also treated as income — fully taxable.

Damages for wrongful dismissal (no PILON clause):

Technically damages for breach of contract. HMRC often treats the first £30,000 as tax-free, but this is discretionary and you should take tax advice.

Always inform HMRC and take tax advice if you receive notice pay or dismissal compensation.

Frequently asked questions

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Employment Rights Act 1996

GOV.UK Employment Tribunals