What is a notice period?

A notice period is the amount of time an employee will work from when they hand in their resignation letter to their final day of work. Notice periods are typically between two weeks to a month.

What are the different types of notice periods?

• Statutory notice periods: The legal minimum amount of time an employee needs to provide.
• Contractual notice periods: Notice periods that are defined in the employment contract.
• Probationary notice periods: Probationary periods are between one to three months where employers see if new employees meet work, adaptivity, and cultural standards before offering them a permanent role.
• Gross misconduct: If an employee has committed gross misconduct, the employer can dismiss them without notice.
• Payment in lieu of notice: Employers pay the employee what they’re owed in gross wages during their notice period, but do not expect them to carry out work.

Why is a notice period important?

A notice period helps the employer prepare for the employee’s departure. Without a notice period, the employee’s team may need to scramble to pick up the workload or rush to fill the position and end up with an unqualified hire.

When an employee gives proper notice, the team has time to either hire a qualified worker for the role, or train a team member to take on additional responsibilities. A notice period also allows the company ample time to transition, setting them up for success. It’s common practice (in addition to being decent and responsible) for employees to give enough notice before leaving the role. Employees can benefit from leaving on good terms and employers can be prepared for the next steps.

Why should HR care about notice periods?

It’s the HR managers’ role to ensure a smooth exit for the employee and the company. They must know all legal aspects, payment, and employee rights to lawfully terminate contracts.

Key reasons why notice periods are important for HR include:

Executing a smooth transition: Proper notice periods give the company enough time to find new talent, train them, and ensure a seamless handover from the departing employee.

Knowledge transfer: During the notice period, the leaving employee usually documents their knowledge and processes to help the replacement get their bearings and avoid confusion.

Business continuity: A set time for departures allows HR can plan ahead and prevent disruptions to critical projects.

Legal compliance: Each country region has specific legal requirements around minimum notice periods that HR must follow.

Maintaining expectations: A well-communicated notice period sets expectations for the departing employee and the company.

How should employees submit their notice?

The employee figures out what their last day will be. At least two weeks is common.

The employee speaks to their supervisor to let them know they’re leaving and when their last day of employment will be.

The employee writes a letter or sends an email detailing the date of the notice, the employee’s contact information, a statement of resignation, a line or two of gratitude for the opportunity, and a signature.

The employee will let their team know, either in person or through a thoughtful message.

Finally, the employee may wish (or be contractually required) to train the new hire or show team members important workflows, files, or documents they’ll need to stay organized.

How long is a notice period in employment?

In the United States, notice periods are typically two weeks, however, the time frame varies from country to country. Here are some examples of international notice periods:

The UK: Employees must give at least a week’s notice if they’ve been in the job for more than a month. The contract will specify whether they need to give notice in writing, otherwise they can do it verbally.

Canada: Employers must provide the employee with at least two weeks’ written notice. For employees who have completed three years of service or more, the minimum notice requirement is one week for every year of employment, up to a maximum of eight weeks of notice.

Australia: For one year of service or fewer, employers must give one week’s notice. One to three years of service requires two weeks’ notice, three to five years is three weeks notice, and more than five years is four weeks. If the employee is over 45 years old and has worked at the company for at least two years, employers must give an extra week’s notice.

Hong Kong: In Hong Kong, employers and employees are required to give notice of termination as specified in the employment contract. If the contract does not include a notice period, the statutory requirement is one month.

Types of notice periods

1. Statutory notice periods: When an employer terminates the employment contract, they must give the employee a notice period. The notice period depends on the employee’s tenure at the company.
2. Contractual notice period: This is the amount of notice in the employment contract. The period is longer than a statutory notice period. The employer and employee may have to give different periods of notice depending on what’s written in the contract.
3. Probationary notice: Probationary notice periods can be between one day to three months depending on the hierarchy of the employee. Before serving the notice period, employment ends by compensating the employee for the full notice period. The employee can serve the notice period away from the workplace, without doing any work. They are also paid for the full notice period.
4. Payment in lieu of notice: The employee is paid for the full notice period but does not have to work. It can include holiday entitlements payment, commission, and compensation for the loss of benefits.
5. Garden leave: Employers pay a person their regular salary away from work for their notice period. Employees are temporarily kept on as an employee so they’re unable to work for a competitor.
6. Zero-hour contracts: Zero-hour contracts do not usually have statutory notice period requirements. Workers do not need to give notice and can leave without handing in a formal resignation. Employers can terminate employment without notice.
7. Dismissal without notice: An employer can dismiss an employee without notice if they commit gross misconduct (e.g. theft, violence, or fraud). The employee will be immediately terminated and paid for the work they completed.