Issue the correct periods of notice

Minimum payment rights

An employee who continues to work during the period of notice is entitled to receive normal pay and benefits - including pay rises - for that period in line with their employment contract.

Minimum payments rights if not working

Employees whose contract specifies normal working hours and whose employment is terminated on notice are entitled to receive a minimum hourly rate for any normal working hours during the notice period that they are:

• ready and willing to work, but no work is provided
• unable to work due to sickness or injury
• absent from work wholly or partly because of pregnancy, childbirth or paternity, adoption or parental leave
• on holiday in accordance with the terms of employment

This right does not apply to employees whose contractual notice period exceeds the statutory minimum by at least one week. These employees are only entitled to be paid in accordance with their contract.

Employees whose contract does not specify normal working hours are entitled to receive at least a week's pay during the notice period for each week that they are:

• ready and willing to do work of a nature and amount to earn a week's pay
• unable to work due to sickness or injury
• absent from work wholly or partly due to pregnancy, childbirth or paternity, adoption or parental leave
• on holiday in accordance with the terms of employment

These minimum payment rights apply whether it is the employer or the employee who gives notice. If the employee gives notice, the employer can delay making the payments until the employee leaves at the end of the notice period - and does not have to make the payments at all if the employee goes on strike during the notice period.

The minimum average hourly rate of pay is a week's pay divided by the number of normal weekly hours. There are legal rules for calculating a week's pay for this purpose. Find out about calculating a week's pay on the Department of Trade and Industry (DTI) website.

Subjects covered in this guide

• Introduction
• Contractual and statutory notice periods
• Notice periods on maternity, paternity, adoption or parental leave
• Varying the notice period
• Minimum payment rights
• Payment in lieu and compromise agreements
• Withdrawing notice

 

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