It is common for a contract of employment to state that either the employer or employee can terminate at any time by giving a period of notice. This generally might be one week or one month. The notice period may also differ depending on whether probation has been passed or not. However, it often comes as a revelation to an employer that what is written in the contract might not be the amount that needs to be given.
Statutory notice period
Contracts can provide for a greater period of notice, but the notice an employer must give an employee cannot be less than the statutory minimum. The statutory minimum is based upon the employee’s length of continuous service as follows:
Up to one month No minimum
One month to 2 years 1 week
2 years + 1 week per complete year (12 week maximum)
This situation commonly arises on redundancy or termination of longer term employees. For example; an employee with ten years service would be entitled to 10 weeks notice as well as a redundancy payment even if their contract referred to notice as one month.
Notice for Agency workers
Whether an agency worker is entitled to minimum statutory notice depends upon their status. Minimum notice is, at present, only applicable to employees. PAYE workers who are engaged on contracts for services are usually considered workers, rather than employees and therefore not entitled to minimum statutory notice.
Terminating without notice and avoiding other claims
There are of course circumstances in which termination can be without notice, such as in the case of gross misconduct. Employers do have the option to pay in lieu of notice, if a contract allows for it. Employers also need to be aware that simply giving notice may not be enough to avoid a claim. Employees might seek to claim for unfair dismissal, redundancy payments or discrimination. Following the correct process is essential, and businesses should always take specialist advice.
For more information on notice periods or rapid advice on any recruitment or employment law matter, please contact us on 01273 236 236 or email us at info@lawspeed.com.
