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Work out how much notice is owed, when the notice period actually starts and ends, and by when holiday has to be directed if you want it used up before the employee goes.
An employer owes more as service builds up. An employee owes one week, whatever their service.
Continuous service is counted from here to the day notice is given.
The notice period itself starts the following day.
Optional. Leave it empty to use the statutory minimum. A contract can beat the statute but never undercut it.
Notice period
0weeks
Two dates and a choice of who is giving notice. The statutory floor is one week once a month is served, then a week for each complete year up to 12, and the notice runs from the day after it is handed over, not from the day itself. The dates appear here as a step by step timeline.
Leavers, without the spreadsheet
Moonworkers holds the leaving date, stops the pay on the right payrun, settles the holiday balance and files the leaver on the FPS with the right leaving date first time.
Two dates decide almost everything, and the third rule catches people out every time.
Step 1
Complete years from the start date to the day notice is given. An employer owes a week per year up to 12; an employee owes one week whatever their service.
Step 2
Notice runs from the day after it is handed over. The last day of employment is the end of the final week, and everything accrues up to and including it.
Step 3
To require holiday to be taken during the notice, the direction has to be given at least twice as far ahead as the holiday is long. Otherwise the balance gets paid out.
See also the redundancy pay calculator, since notice is owed on top of any redundancy payment.
One week once the employee has a month of service, then one week for each complete year of service, stopping at 12 weeks. That is the floor: a contract can promise more, never less.
One week, once they have a month of service, and it never grows with length of service. Anything longer has to come from the contract.
The day after notice is given, unless the contract says otherwise. So a week’s notice handed over on a Monday runs out at the end of the following Monday, not that Sunday. Getting this wrong by a day is the most common mistake on a final payslip.
The employer keeps the employee away from work during their notice but keeps employing and paying them. The contract carries on in full: pay, pension, holiday accrual, confidentiality and any restrictive covenants all run to the last day.
Yes, but only with notice of at least twice the length of the holiday. Five days off need ten days’ notice. Miss that window and the employer can ask but cannot insist, and whatever is left has to be paid out on the final payslip.
Yes. It is taxed as earnings, and the post-employment notice pay rules stop it being reclassified as part of a tax-free termination payment. Only a genuine redundancy payment gets the £30,000 exemption.
Yes, throughout the notice period and throughout garden leave, because the employee is still employed. Anything unused on the last day has to be paid in lieu.
Where the contractual notice is no more than a week above the statutory minimum, the employee is entitled to full pay for the statutory notice period even if they are off sick, on maternity leave or laid off. Employers with short contractual notice periods are caught by this more often than they expect.
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