Notice entitlements can be confusing for employees. This blog discusses the different notice entitlements that may apply to an employee and hopes to provide information which makes those entitlements clearer. Please read on for more information.
What is My Statutory Notice Period?
All employees have a statutory notice period which is the amount of notice an employer should give you if they intend to terminate your contract of employment. Your notice periods are a fundamental right that you, as an employee, have. The amount of statutory notice you are entitled to will depend on how long you have been employed. For example:
- If you have been employed for more than one month, but less than two years, your statutory notice period shall be one week.
- If you have been employed for more than two years, then your statutory notice period is one week for every year you have worked for your employer. Please note that there is a cap on the notice period of 12 weeks.
Your statutory notice period is the minimum notice period your employer should give you to terminate your employment. The only exception is where you are dismissed for gross misconduct (see below).
Contractual Notice Period
Your statutory notice period cannot be reduced by agreement between the employer and employee. It is an absolute right that you receive this notice if your employer terminates your employment (bar dismissal for gross misconduct, see below). However, your contract of employment may entitle you to more than the statutory right.
I Have Resigned – Do I Have To Give Notice?
Your statutory notice period is the minimum amount of notice your employer is required to give you if they terminate your employment. The same does not apply if you end your employment by resigning.
However, it is likely that your contract will stipulate a minimum period of notice you must give to end your employment. If you do not have a contract of employment, your notice must be reasonable in all the circumstances.
Is My Employer Required to Pay My Notice Period?
If you are dismissed with notice, for example for redundancy, sickness absence, performance matters etc, then, yes, your employer is required to pay you for your notice period.
Your employer can pay your notice through passage of time. This means you remain employed for the duration of your notice period and either carry on working as usual or be placed on garden leave.
For example, if you have a 4-week notice period and your employer informs you that your notice period will commence on the 1 April 2021, your termination date (last day of employment) will be 29 April 2021.
In the alternative, your employer may be able to pay your notice as a payment in lieu of notice. This is commonly referred to as a PILON. Your contract of employment will need to state that your employer can pay your notice as a payment in lieu. Under this option, your employment will come to an end immediately and you are not required to work your notice period. Instead, you are paid your notice period as a lump sum payment.
For example, if you have a 4-week notice period, and on 1 April 2021 your employer informs you that your termination date shall be that same day, your notice shall be paid as payment in lieu. Your employment would end on 1 April 2021 and you would then receive a lump sum payment equivalent to 4 weeks’ pay (subject to usual PAYE deductions).
Can My Employer Refuse to Pay My Notice?
There are certain exceptions when an employer can legitimately refuse to pay an employee their statutory or contractual notice pay. For example, when an employee is dismissed on grounds of gross misconduct and summarily dismissed.
In this situation, your employer will claim that your actions or misconduct were so severe that they are entitled to dismiss you and refuse to pay your notice.
If your employer states that you are being dismissed without notice, please do not immediately assume that your employer is correct in their position. In order for a gross misconduct dismissal, or dismissal without notice, to be fair and legal, the alleged conduct must be really serious.
What Can I Do If My Employer Refuses to Pay My Notice?
If your employer refuses to pay you for your notice period, you may be entitled to bring a claim for Wrongful Dismissal.
Wrongful Dismissal is where your employer has breached their notice obligations. If they have failed to correctly pay your notice period, then potentially you would be able to bring a Wrongful Dismissal claim at the Employment Tribunal.
There are strict time limits in which you can bring a claim for wrongful dismissal. You must start the litigation process by registering your claim with ACAS Early Conciliation within 3 months less one day from your termination date.
Lincs Law Employment Solicitors Can Help You
If you would like to further advice on notice periods or wrongful dismissal, please call 01522 440512 for a no obligation, free telephone consultation. For more information on the services we offer, please visit our website: https://lincslaw.co.uk/services/employees/
Jasmine Stewart
Specialist Employment Solicitor
Tags: employee rights Employment Solicitor in Lincoln jasmine stewart lincs law employment solicitors Notice Entitlements Notice Pay notice period wrongful dismissal