Frequently asked questions
What is the statutory minimum notice period?
By law, employees are entitled to one week's notice for each complete year of service, up to a maximum of 12 weeks. The minimum is one week regardless of length of service. If the contractual notice period is longer than statutory, the longer period applies.
What is payment in lieu of notice (PILON)?
PILON is a payment made to an employee instead of them working their notice period. The employer pays the equivalent wages for the notice period and the employment ends immediately. Since April 2018, PILON is subject to income tax and National Insurance regardless of whether it is included in the employment contract.
Can an employer dismiss without notice?
In cases of gross misconduct, an employer may dismiss without notice and without PILON — known as summary dismissal. Outside gross misconduct situations, failure to give proper notice creates a breach of contract and the employee may be owed damages.