Notice Periods - what you need to know

When considering notice periods, it is important to understand the distinction between Statutory Notice and Contractual Notice. Statutory notice is the minimum legal notice that is required. Employees are required to give an employer a minimum of one week’s notice once they have been employed for one month. In comparison, Employers give notice as follows Less than One Month’s service:    No statutory minimum One month to 2 years service:       One week Two years or more:                          One week for each year of continuous service up to a maximum of 12 weeks. Alternatively, the contract of employment can set out notice periods. If the contractual notice is less than the statutory notice period however, the statutory notice period will prevail. If the contractual notice is more than the statutory notice, this however will take precedent. If an employee refuses to work their contractual notice period, then they will be in breach of contract, as will the employer if they do not give the correct notice. The only situation this does not apply to is when their has been an incident of gross misconduct, whereby no notice needs to be given. Employers are also able to Pay in lieu of notice (PILON). This allows the employer to pay the employee for their notice period without them having to work this period.  If an employer does want to PILON, it is usually best practice to ensure this is included in the contract, as otherwise it may be considered a breach of contract. For more information please contact info@partnerslaw.co.uk