UK Statutory Notice & Pay in Lieu of Notice (PILON)
Under the Employment Rights Act 1996, employees in the UK have a legal right to a minimum notice period before their employment ends. The statutory minimum is: 1 week if employed for 1 month to 2 years; 1 week per year for 2–12 years of service; and a maximum of 12 weeks for 12+ years of service.
Your employment contract may give you a longer notice period than the statutory minimum. You are always entitled to whichever is greater — the statutory minimum or the contractual period.
UK statutory notice periods under the Employment Rights Act 1996 are: 1 week minimum for employees with at least 1 month but less than 2 years of service; 1 week per year of continuous employment for 2–12 years; and a maximum of 12 weeks for 12 or more years. These are the legal minimums — your contract may provide longer notice, and you are entitled to whichever is greater.
PILON (Pay In Lieu Of Notice) is a payment your employer makes instead of requiring you to work through your notice period. It is calculated as your normal pay for the notice period you would otherwise have worked. Since April 2018, all PILON payments are subject to income tax and National Insurance — even if your contract says they are non-taxable. The amount should reflect your full contractual pay including regular overtime and benefits, not just basic salary.
An employer can lawfully dismiss you without notice (summary dismissal) only in cases of gross misconduct — serious acts such as theft, fraud, physical violence, serious insubordination, or breach of confidentiality. In all other circumstances, even if you are placed on garden leave, you are entitled to receive your full notice period or equivalent payment. Dismissal without proper notice in non-misconduct cases can lead to a wrongful dismissal claim.
Garden leave means you are still employed and receiving pay during your notice period, but you are not required to come into work. This is often used for senior employees with access to sensitive information or clients. During garden leave you continue to receive your full salary and benefits, accrue holiday, and remain bound by your employment contract terms including confidentiality and non-compete clauses.
Notice periods and redundancy pay are separate entitlements. If you are made redundant, you are entitled to both your redundancy pay (if you have 2+ years' service) AND your notice period or PILON. Employers cannot offset one against the other. Use our Redundancy Pay Calculator to estimate both entitlements separately.