A notice period in employment is the duration which needs to be given to the employee by the employer or to the employer by the employee before the employment can be terminated. An employee can be terminated sooner if they breach their agreement.
Notice period meaning
Notice period means the amount of time an employee or employer must give before employment ends. In practice, it is the handover window between resignation, dismissal or termination and the final working day. The required notice can come from the employment contract, statutory minimum notice rules or a longer company policy.
How long is a notice period in employment?
A notice period in employment will vary based on the industry, seniority of the employee, the company and the role. The length of the notice period should be reasonable which means long enough for the employer to find a replacement or the employee to find a role but short enough that it does not lock either side into an unwanted relationship. The notice period for new starters may be shorter if they have a probationary period.
Does the employee need to work during their notice period?
An employee might be requested to work during their notice period. This might mean helping find and train their replacement or finishing projects they're working on. If an employer doesn't want the employee to work their notice period they can place them on garden leave. Alternatively, the employee and employer might opt for a payment in lieu of notice (PILON) which means the employee will be paid at least the equivalent of their salary for the period of their notice and the employment will be terminated immediately.
Is the employee allowed to work for a competitor during their notice period?
An employees restrictions will usually apply to their notice period as well a period after their employment. Moreover, the employer's rights will continue to apply during the notice period which means for example that the employer would normally own any intellectual property developed during the notice period by the employee.
What does notice period mean on a job application?
If a candidate for a role is already an employee of a different employer, then they will need to terminate their employment by giving notice to their existing employer before they can start the new role. The candidate might therefore be asked by to provide their notice period in the job application.
Notice period FAQs
What is a notice period?
A notice period is the time between giving notice and the date employment ends. It gives both sides time to plan handover, recruitment, payroll and access to company systems.
How long is a notice period?
The length depends on the employment contract, statutory minimum notice and the employee's role or seniority. Some probation periods use shorter notice, while senior roles often use longer contractual notice.
Can notice be paid instead of worked?
Yes, if the contract allows payment in lieu of notice or both sides agree. In that case, employment may end earlier while the employee receives pay for the notice period.
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The opinions on this page are for general information purposes only and do not constitute legal advice on which you should rely.
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