Understanding your statutory notice period is essential when dealing with redundancy, temporary layoff, or any kind of job termination under UK employment law. This is the minimum amount of notice your employee must give before ending a job. It’s designed to give both sides enough time to prepare- whether that’s finding a new job or managing changes at work.

Whether you’re facing redundancy or just want to be informed, knowing your rights around notice periods helps you stay in control. It’s a simple but important part of protecting yourself during big career changes. This blog helps you understand those rights clearly so you can make confident decisions.

What Is a Statutory Notice Period Under UK Employment Law?

The statutory notice period, also referred to as the length of notice, is the legal minimum amount of notice that either an employer or an employee must give to end an employment contract. Set out in the Employment Rights Act 1996, this requirement applies in most situations – whether it’s redundancy, dismissal, or resignation. It’s a key part of UK employment law and exists to ensure fairness and consistency when employment comes to an end.

If you’re wondering what the statutory notice period UK is, it simply refers to the mandatory timeframe that must be observed before employment ends.

In simple terms, the statutory notice period protects both sides:

• Employers must give notice based on how long the employee has worked for them.
• Employees must give notice too – usually one week if they’ve been with the company for a month or more.
• The contract can always offer more than the statutory minimum – but never less.
• In cases of gross misconduct, an employer can dismiss someone immediately without notice (known as summary dismissal).

The idea of notice periods has evolved. In the past, employees could be let go on the spot, with no warning. But as workers’ rights became a bigger priority, the law stepped in:

• Statutory notice periods became a standard part of employment contracts.
• The longer you’ve worked for an employer, the more notice you’re entitled to – up to a maximum of 12 weeks.
• These rules help make job transitions less stressful and more predictable.

How Much Notice Must an Employer Give in Redundancy?

When redundancy happens, UK employment law makes it clear that employees must be given proper notice. The length of notice depends on the employee’s period of continuous service with the employer.

This rule helps protect employees from being let go without warning and gives time to prepare for what’s next, including a termination notice.

Here’s what to keep in mind:

• Notice starts only after the decision is formally communicated – not during discussions.
• The longer you’ve worked, the longer your notice period.
• Written notice is strongly recommended, so there’s no confusion later.
• If there’s a consultation period, notice starts after that ends.
• The notice should clearly state your final working day and any pay or entitlements.

During redundancy, employees are also protected by special rules:

• If you’ve worked two or more years, you’re usually entitled to redundancy pay.
• You can take a reasonable time off to look for a new job or attend training.
• Employers must follow a fair and transparent selection process.
• If 20 or more employees are affected, a collective consultation must take place.

The notice period officially begins the day after you receive formal notice – whether that’s face-to-face, by letter, or email.

Read our guide on Redundancy pay zero hours contract here.

Are There Any Exceptions to Statutory Notice Period Requirements?

Yes, there are a few situations where the usual statutory notice period rules don’t apply, and it’s important to know when these exceptions kick in. The most common examples are cases of gross misconduct, probation periods, and certain fixed-term contracts.

If an employee’s employment contract is dismissed for gross misconduct, the employer can terminate the contract immediately—this is called summary dismissal. No notice and no statutory notice pay are required.

Here’s what employers need to do:

• No notice is owed if gross misconduct is clearly proven.
• A fair investigation and proper process must still be followed.
• If the process is flawed, it can lead to wrongful dismissal claims.
• Examples include theft, violence, fraud, or serious insubordination.

For related employer responsibilities around statutory entitlements, see this guide on statutory adoption pay.

When it comes to probation periods, if the employee has worked for at least one month, they’re still entitled to statutory notice, even if shorter notice is written into the contract.

For fixed-term contracts, the rules depend on how the contract ends:

• If the contract ends naturally, no notice may be required.
• If it ended early, statutory or contractual notice must still be given.
• Failure to do so may result in a breach of contract.

How Is Statutory Notice Period Calculated for Employees?

When working out how statutory notice pay is calculated in different employment situations, it’s not just about how long someone’s been employed – it also matters how they’re paid. Whether an employee is paid weekly or monthly, they’re entitled to full regular wages, normal pay, and benefits during their notice period. That means holiday pay, pension contributions, and any other contractual benefits continue as usual.

Here’s a simple breakdown to help you see how it works:

Now, let’s talk about who qualifies for statutory notice. You may wonder: Do part-time employees have the same notice rights? Yes – they do, as long as they’ve met the required length of service.

To be entitled to statutory notice, an employee needs to have at least one month of continuous service. After that, the notice period increases by one week for each full year worked, up to a maximum of 12 weeks.

Here’s what counts as qualifying service:

• Unbroken employment with the same employer.
• Fixed-term contracts renewed with no gaps in between.
• Probation periods (if the employee stays on after).
• Time spent on parental leave, sick leave, or statutory leave.
• Part-time or temporary work, as long as there’s no significant break.

Employers need to calculate the length of service carefully. Getting it wrong could mean legal claims or extra compensation.

If you’re wondering what happens if an employee does not receive their statutory notice pay, they may be entitled to compensation through an employment tribunal claim; to learn how different leave types affect qualifying service, see our guides on understanding parental pay entitlements and occupational sick pay explained.

What Is Pay in Lieu of Notice (PILON) in Redundancy Situations?

Pay in Lieu of Notice (PILON) is when an employer chooses to end someone’s employment immediately, rather than having them work through their notice period. Instead of working, the employee receives a lump-sum payment covering what they would have earned during the notice period. This is common in redundancy situations and offers a quicker, smoother transition for both parties.

So, what does this mean in practice?

For employers, PILON allows for a clean break, especially when it’s not practical or appropriate for the employee to stay, like when they have access to sensitive information or morale might be impacted.
For employees, it means they get paid in full for the notice period without having to work, giving them financial stability while they look for something new.

Can an employer waive the right to statutory notice pay? Yes, but only in certain cases, such as when both parties agree to PILON, or if gross misconduct applies.

Here are the key points you need to understand fully.

• PILON must match the employee’s normal pay and benefits.
• If there’s a PILON clause in the contract, the employer can use it without needing extra consent.
• Without a clause, making a PILON payment requires agreement, or it could breach the contract.
• Once paid, employees are usually free to take a new job immediately.

Employers must make sure:

• Tax is correctly deducted if the PILON is contractual.
• All legal requirements are met to avoid claims or penalties.
• Any benefits (like pensions or health insurance) are handled according to the contract.

What Does “Garden Leave” Mean?

Garden leave is a contractual arrangement where an employee, upon being given notice of termination, is required to stay away from work during their notice period but remains on full pay and bound by the contract of employment. The garden leave clause is designed to protect the employer’s business interests, such as confidential information and customer relationships. Employees on garden leave cannot start new employment until the notice period ends, but all rights and benefits continue as normal.

Let’s see how garden leave operates in practice and its impact on redundancy, employee rights, and holiday pay.

How Do Garden Leave and Holiday Pay Work Together?

Understanding how holiday pay is treated during garden leave is crucial to protect your rights and ensure fair compensation. It helps you know what to expect financially while not working but still employed. Being informed prevents surprises and supports better planning during this period.

Respecting these rights ensures compliance with employment law and avoids disputes during the final stages of employment.

For further details on holiday pay rights for specific contract types, check out this article on zero-hours contracts and holiday pay.

Want Statutory Notice Periods Made Simple? Let Direct Payroll Services Handle the Details

Navigating statutory notice periods can be complex and easy to get wrong, risking compliance issues and employee dissatisfaction. Direct Payroll Services specialises in accurate payroll management tailored to UK employment laws, ensuring every notice period, whether for redundancy, resignation, or dismissal, is calculated and paid correctly.

With our expertise, your business avoids costly errors and stays fully compliant with statutory requirements, giving you peace of mind. We simplify the payroll process, so you can focus on running your business while we handle the legal and financial details.

Contact us today for reliable, hassle-free payroll support that gets statutory notice periods right, every time.

Conclusion

Understanding the statutory notice period during redundancy is essential for both employers and employees. It clarifies rights and obligations in this challenging time. Employers must comply with legal requirements and communicate clearly, while employees should be aware of their entitlements. Knowing the details of statutory notice periods helps you navigate redundancy confidently.

Frequently Asked Questions

Can employees negotiate a longer notice period than the statutory minimum during redundancy?

Yes, employees can negotiate longer notice periods if their employment contract allows it. Employers may agree to enhanced contractual terms during redundancy. Any agreed period must not be shorter than the statutory minimum and is a matter of negotiation and contractual agreement.

Do statutory notice periods differ in the UK or for international employees?

Statutory notice periods vary internationally. In the UK, employment standards legislation sets different minimums based on province, length of service, and circumstances. International employees should consult local employment rights to confirm their statutory entitlements, as UK law only applies to UK-based employment relationships.

What happens if an employee refuses to work their notice period during redundancy?

If an employee refuses to work their notice period during redundancy, they may be in breach of contract. This could affect their termination date and entitlement to notice pay. Employers can agree to waive the notice or seek damages if financial loss is incurred.

How do statutory notice periods differ between employers and employees when ending a contract?

Statutory notice periods apply to both employers and employees, but may differ based on the party giving notice. Employees typically must give one week’s notice after a month’s service, while employers’ obligations scale with length of service, up to 12 weeks for longer-serving staff.

What is the difference between the statutory notice period and the contractual notice period?

The statutory notice period is the minimum notice set by UK law based on how long an employee has worked. The contractual notice period is what’s written in the employment contract and can be longer than the statutory minimum. Employers must follow whichever notice period is longer – statutory or contractual. Both ensure employees are given fair warning before employment ends.