Redundancy guide · Great Britain
How your notice period affects your redundancy package
Your final payment can include notice pay, statutory or enhanced redundancy pay, and outstanding holiday pay. Ask your employer for an itemised breakdown so you can check each amount.
Statutory minimum notice
| Continuous service | Minimum notice |
|---|---|
| At least 1 month and under 2 years | 1 week |
| At least 2 years and under 12 years | 1 week per completed year |
| 12 years or more | 12 weeks |
Your contract can provide longer notice. For example, six completed years normally give you at least six weeks’ statutory notice. If your contract gives eight weeks, check the employer’s calculation against those eight weeks.
Working notice, garden leave and PILON
- Working your notice
- You remain employed and normally keep working and receiving pay. If you will have at least two years’ continuous employment by the end of your notice period, you are generally entitled to reasonable time off to look for work or arrange training. Statutory pay for that time off is capped at 40% of a week’s pay.
- Garden leave
- You remain employed and receive your usual pay and contractual benefits during notice, while your employer asks you to stay away from work or limits your duties.
- Payment in lieu of notice (PILON)
- Your employment ends without you working all of your notice. Check your contract or agreement for how the payment is calculated and which benefits it covers. Ask which date the employer used to calculate statutory redundancy pay, as statutory notice rules can affect that date.
Tax and unused holiday
Notice pay, including PILON, is generally treated as earnings for Income Tax and National Insurance. Qualifying redundancy pay can count towards the separate £30,000 exemption. See our redundancy tax guide for a worked example.
When employment ends, your employer must pay you for accrued, unused statutory holiday. Check your contract for any extra contractual leave. Your employer can also require you to take holiday during notice, generally with at least twice as much advance notice as the leave it requires, unless a relevant agreement sets different rules.
Use the redundancy pay calculator to estimate the gross statutory redundancy portion. Compare it separately with the notice and holiday amounts on your breakdown.