UK Notice Periods Explained: Statutory, Contractual and Garden Leave

You've just accepted a new job offer. The start date is agreed. Then your new employer asks: "What's your notice period?" If you don't know the exact answer — including whether your contract has garden leave provisions or a PILON clause — you could be creating a serious problem. Most people don't check their contract until the moment they need to resign. This covers what you need to understand before that conversation happens.

Statutory vs contractual notice — which applies?

In the UK, notice periods are governed by two sources: the statutory minimum set by law (Employment Rights Act 1996), and whatever your employment contract says. The higher of the two applies.

In practice, your contract almost always specifies more than the statutory minimum — especially for roles above entry level. If your contract is silent on notice, the statutory minimum is your fallback.

Statutory minimum notice periods (UK 2026)

Note: these are the minimum periods your employer must give you if they terminate your employment. The notice you owe your employer when you resign may differ — it's almost always specified in your contract.

Typical contractual notice periods by seniority

Always check your contract — not your offer letter, which may differ from the signed employment agreement. Verbal agreements about notice are legally enforceable but extremely difficult to prove.

Garden leave explained

Garden leave (or "gardening leave") means your employer places you on paid leave for your notice period — you stop working but remain employed. You receive full salary, pension, and benefits. You're also still bound by confidentiality and non-solicitation clauses.

Employers use it to keep you away from clients, projects, and competitors while your contract winds down. It's common in finance, law, sales, and senior roles where relationships have commercial value.

If you're put on garden leave, you cannot start a new job until your notice period ends — even though you're not actually working. Factor this into your job search timeline.

Payment in lieu of notice (PILON)

PILON means ending employment immediately with a payment equal to your notice period salary, rather than working it out. Whether this is available depends on your contract:

• Express PILON clause in your contract: The payment is treated as normal income — subject to full tax and National Insurance.
• No PILON clause: If your employer pays PILON without contractual authority, it may be treated as damages — with different (sometimes more favourable) tax treatment. Take advice before accepting.

Golden nugget: PILON can go both ways

Most people think of PILON as something the employer offers. But in some contracts, you can also elect to pay PILON yourself — effectively buying your way out of your notice period. If your new employer is in a hurry and your notice period is long, it's worth checking whether your contract allows this, and what it would cost. Paying three weeks of net salary to walk out of a six-figure new role sooner is often a straightforward financial decision.

How to calculate your last working day

Your last working day = the day you hand in written notice + your notice period.

Notice typically starts the day after you resign in writing. Give notice in writing even if your contract doesn't require it — it creates an unambiguous record. An email to your manager with your line manager and HR copied is standard practice.

Use our free Notice Period Calculator to work out your exact end date.

Negotiating a shorter notice period

Employers regularly agree to release employees early — they don't always want to pay a leaver for three months. The conversation works best if you:

• Frame it around completing a thorough handover, not your personal circumstances
• Offer a specific compressed handover plan — a written document, training sessions, or overlap with your replacement
• Pick your moment — raise it early, not the week before you want to leave

If they say no, that's their legal right. If your new employer can't wait, explore whether garden leave or PILON are options on either side.

Never resign before you have a signed offer letter

Verbal job offers are not contracts. Until you have a signed offer letter — with salary, start date, and role title confirmed in writing — do not hand in your notice. Offers are occasionally withdrawn after verbal confirmation. The cost of resigning without a firm offer in hand is significant.

Once you do have a signed offer, tell your new employer your notice period immediately — before they set a start date that you can't meet.