Section 86 of the Employment Rights Act 1996 (ERA) regulates the minimum periods of notice on terminating employment.

Notice to be given by the employer:

• less than two years' continuous employment, at least one week.
• two years' to 12 years' continuous employment, one week's notice for each year of employment.
• over 12 years' continuous employment, not less than 12 weeks' notice

Notice to be given by the employee continuously employed over one month, at least one week.

The period of notice to be given by the employee does not increase with longer service although employers can, and often do, vary the terms of the contract to lengthen the notice period. Similarly, employers may contractually exceed the statutory minimum periods of notice they are required to give employees.

If employees resign without giving the required notice they are not entitled to payment for the period they should have worked
Employers may give pay in lieu of notice, which is then National Insurance and tax free provided there is not a term in the contract of employment which states that the employer reserves the right to make a payment in lieu.

Employees on fixed-term contracts have the same notice rights as permanent employees if the contract is terminated before the expiry date. It is therefore advisable to have a notice of termination clause in all fixed-term contracts, as a failure to include one may result in the employer being liable to make full payment of salary up to the agreed expiry date should the contract be terminated early. It is, however, not necessary to give notice on the expiry of the fixed term as the end date was stated at the beginning of the contract.

Similarly, employees who are retiring at the organisation's normal retirement age do not need to be given notice. It is, however, good practice to give notice and communicate fully with employees.