Calculate your statutory minimum notice period, your last working day and payment in lieu of notice (PILON). Works for both employees and employers.
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Notice periods give both employers and employees time to prepare for a change. There are two types — statutory minimum notice (set by law) and contractual notice (set in your employment contract). The longer of the two applies.
If you are resigning, you must give your employer at least 1 week's notice regardless of how long you have worked there — unless your contract specifies a longer period.
If your employer is dismissing you, the statutory minimum notice depends on your length of service:
Your contract may specify a longer notice period than the statutory minimum. The contractual period overrides statutory minimums if it is longer. Common contractual periods are 1 month, 3 months or 6 months for senior roles.
Rather than working the notice period, your employer may pay you a lump sum instead — this is called payment in lieu of notice (PILON). Whether PILON is taxable depends on whether it is included as a term in your contract. Post-employment notice pay (PENP) rules from 2018 mean most PILON payments are now subject to income tax and NI.
During your notice period your employer may ask you to stay at home and not work — this is called garden leave. You remain employed and on full pay during this period but are not required to come into work or perform your duties.
If your employer dismisses you without giving proper notice or PILON, this is called wrongful dismissal. You may be able to claim damages equal to the pay you would have received during your notice period.