Workers leaving: the basics

Notice periods

The notice period must be at least the statutory minimum, or any longer period which you have agreed in the contract of employment. The required notice period must be given in the employee's written statement or the statement must refer to the relevant legislation on notice periods.

For more details, see our guide on how to issue the correct periods of notice. To avoid disputes, most businesses specify that notice must be given in writing.

Pay during notice

Employees who work the hours set out in their contract during the notice period should receive their usual rate of pay. Employees are also generally entitled by law to receive a minimum rate of pay during the notice period even if they do not work, for instance because they are ill or because they are willing to work but you do not give them any.

Pay in lieu of notice

If you want employment to end immediately, you may generally make a payment instead of notice in compensation. Payment should cover salary - including any bonus required under their contract - until the end of the notice period together with the cash equivalent of benefits in kind, unless their contract says otherwise.

Holiday pay owed to the employee should be treated differently from pay in lieu of notice and should be paid together with the final salary payment.

For further information on notice periods, download the publication on rights to notice and reasons for dismissal from the DTI website (PDF).

Subjects covered in this guide

• Introduction
• The process to follow when a worker leaves
• Notice periods
• Providing references
• Contractual matters when employment ends
• Long-term absences

 

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