What is your notice period — and what does it mean for your pay?

Calculate your statutory or contractual notice period, find your last working day, and estimate your payment in lieu of notice (PILON). Based on the Employment Rights Act 1996.

1 week

Statutory minimum (1 mo – 2 yrs)

Under Employment Rights Act 1996

12 weeks

Statutory maximum

After 12+ years of service

Fully taxed

PILON tax treatment

Income tax + NI as salary

Your employment details

Used to calculate statutory minimum notice.

Check your employment contract.

£

Used to calculate PILON amount.

UK Employment Rights Act 1996. Not legal advice.

Your notice period

Enter your details to calculate

How notice period calculation works

  1. 1

    Check your contractual notice period first

    Your employment contract may specify a longer notice period than the statutory minimum. You're always entitled to whichever is higher — contractual or statutory. Most professional roles have 1–3 months contractual notice.

  2. 2

    Apply the statutory minimum if no contract applies

    The Employment Rights Act 1996 (s.86) sets the statutory floor: 1 week after 1 month of service, then 1 week per full year up to a maximum of 12 weeks. Fractions of a year don't count — only complete years.

  3. 3

    Count from the notice date, not the work date

    The notice period starts the day after you give or receive notice. If you hand in notice on a Monday, your notice starts Tuesday. Weekends and bank holidays typically count as notice days unless your contract says otherwise.

  4. 4

    PILON: calculate gross pay for the notice period

    Payment in lieu of notice replaces the notice period with a lump sum. The amount is typically your base salary for the notice duration (weekly pay × notice weeks). Contractual PILON clauses may include benefits, bonuses, or commission.

  5. 5

    Tax treatment of PILON

    Unlike redundancy pay, PILON is always fully subject to income tax and National Insurance — it's treated as employment income. This is because the Income Tax (Earnings and Pensions) Act 2003 and the post-April 2018 HMRC rules treat all PILON as taxable (even where previously it might have been tax-free under older contracts).

UK notice period rules explained

Statutory minimum notice
Under 1 monthNone (check contract)
1 month – 2 years1 week
2 years2 weeks
5 years5 weeks
10 years10 weeks
12+ years12 weeks (maximum)

Garden leave

You remain employed and paid but are asked not to come to work. Common in client-facing or senior roles. Your employer can only put you on garden leave if it's expressly written into your contract. You continue to accrue holiday and benefits during garden leave.

Accrued holiday pay

Any unused holiday entitlement must be paid out on termination. This is in addition to notice pay or PILON. It's calculated on your average weekly pay over the previous 52 weeks.

Frequently asked questions

Can my employer reduce my notice period?

Your employer cannot reduce your contractual notice below the statutory minimum without your consent. However, both parties can agree to waive or shorten the notice period — for example, if you reach a mutual agreement to leave sooner.

What's the difference between PILON and garden leave?

PILON ends your employment immediately in exchange for a lump sum covering the notice period. Garden leave keeps you employed (and paid) for the full notice period but asks you to stay away from the workplace. Garden leave preserves post-termination restrictions more reliably than PILON.

Is all PILON now subject to tax and National Insurance?

Yes — since April 2018, HMRC rules under the Finance Act 2017 require all PILON to be treated as employment income. This applies even if your contract doesn't include an express PILON clause. There is no longer a tax-free element for the basic pay element of PILON.

What if I'm dismissed without being given my notice period?

This is called 'wrongful dismissal'. You're entitled to compensation equivalent to your notice pay (or payment in lieu). You can make a claim through an employment tribunal or through the civil courts. The time limit for wrongful dismissal claims is 3 months from the date of termination (employment tribunal) or 6 years (civil courts).

Do I have to work my notice if I've just been made redundant?

Not necessarily. Your employer may choose to pay you in lieu of notice (PILON) instead. Alternatively, you may be kept on garden leave. You do not have to work your notice period if your employer waives it — but you remain entitled to full pay for the notice period regardless.

Can I start a new job during my notice period?

Usually not without your current employer's consent — starting a new job while still employed typically breaches your employment contract. Check for any restrictive covenants or clauses about working for competitors during notice. Some contracts specifically prohibit working for a direct competitor for a period post-termination.

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