Statutory notice periods on dismissal (UK)

When a job is cut because a system or AI tool now does the work, the employment still has to end lawfully. One of the first rules is notice: how long before the end date the employer must tell the employee, and what the employee is paid during that time. Contracts often give more, but the law sets a floor that every HR system and every exit letter has to meet.

The short answer: after one month's continuous employment, an employer must give at least one week's notice, rising to one week for each complete year of service from two years, up to a maximum of twelve weeks after twelve years. An employee must give at least one week (Employment Rights Act 1996, s86). Either side can waive notice or accept a payment in lieu.

The minimum periods

• One month to under two years' service: at least one week (s86(1)(a)).
• Two to under twelve years: at least one week for each year of continuous employment (s86(1)(b)).
• Twelve years or more: at least twelve weeks (s86(1)(c)).
• From the employee: at least one week once they have one month's service (s86(2)).

A shorter period in the contract has no effect against these minimums, but either party can waive the right to notice on any occasion or accept a payment in lieu of notice (s86(3)). A contract for a term of one month or less is treated as indefinite once the person has three months' service, so the minimums apply (s86(4)). The section does not affect either party's right to end the contract without notice because of the other's conduct (s86(6)).

Pay during the notice period

Sections 88 to 91 protect pay during the statutory notice period, whether the employer or the employee gave notice (s87(1) and (2)). They do not apply where the contract requires the employer to give at least one week more than the statutory minimum (s87(4)).

For an employee with normal working hours, the employer must pay at least the average hourly rate for any normal working hours in which the employee is ready and willing to work but given no work, is off sick or injured, is on maternity, adoption, shared parental, carer's, parental bereavement, neonatal care, parental or paternity leave, or is on holiday under the contract (s88(1)). Sick pay, statutory pay for leave and holiday pay for that time count towards it (s88(2)). So an employee put on garden leave or left with no work after a system takes over their tasks is still paid for their notice. An employee without normal working hours must be paid at least a week's pay for each week of notice, provided they are ready and willing to do reasonable work (s89).

Where the employee gave notice, these pay rights apply only once they leave in line with that notice (s88(3) and s89(5)).

Exceptions

• No payment is due for leave the employer granted at the employee's request, including statutory time off under Part VI of the Act, such as time off to look for work, which has its own pay rules (s91(1)).
• If the employee gave notice and then takes part in a strike of the employer's employees before the contract ends, nothing is due under sections 88 or 89 (s91(2)).
• If the employee breaks the contract during notice and the employer rightly treats it as ended, nothing is due for the period after that (s91(4)).
• If the employer fails to give the notice required, these rights are taken into account in assessing its liability for breach of contract (s91(5)).

Practical steps

• Employers: calculate notice from complete years of continuous service, not from a default in the HR system, and check the contract and the written statement of terms for longer terms. Decide in writing whether the employee works the notice, takes garden leave or receives pay in lieu, and keep paying during notice even if the work has moved to a system.
• Employees: check your notice against your service and contract. If you are told your job is going, ask for the end date and how notice will be paid in writing. If the employer is insolvent, statutory notice pay can be claimed from the National Insurance Fund; see employer insolvency. For the separate lump sum on redundancy, see redundancy pay; for whether the dismissal itself is fair, see unfair dismissal. If you were hired for a fixed term, for example on an AI project, see fixed-term employees' rights.

These sections extend to England, Wales and Scotland. This page is general information on the law in Great Britain as at 1 November 2026, not legal advice.