A notice period is the amount of time between notification of a person’s departure or dismissal and their last day at work.
Notice periods play a key role in smoothly managing staff transitions and ensuring business stability. A well-thought-out notice period creates a straightforward handover situation, including seamless transitions, effective knowledge transfer to incoming staff, and maintained project continuity.
Notice periods vary widely depending on local labor laws, company policies, and individual employment agreements. Let’s explore the different types of notice periods, how they contribute to effective workforce management, and how they benefit team members and employers.
Key insights
- A notice period is the time between when a person resigns or is dismissed and their last working day. It ensures a smooth transition for both the employer and team member.
- Notice periods vary by country and company policy. In the US, two weeks’ notice is common but not legally required. In the UK, statutory notice periods depend on tenure, ranging from one week to 12 weeks.
- Notice periods maintain operational continuity, support knowledge transfer, and contribute to financial and psychological preparedness for departing team members.
- Notice periods can be statutory (set by law), contractual (agreed upon in employment contracts), or probationary—often shorter and typically applying during the initial phase of employment. Employers may also use payment in lieu of notice or garden leave.
- To implement effective notice periods, HR leaders should draft clear contracts, offer incentives, use performance reviews, improve manager communication, and ensure structured offboarding processes.
What is a notice period?
The notice period refers to the time between when a person is informed they’ll be leaving (or informs their employer they are leaving) and their final working day. It applies to both team members and employers: someone who intends to resign must inform their employer in advance, and an employer must notify a team member before ending their employment.
In the United States, employment relationships are at-will by default, meaning employers and their people can end the relationship at any time for a legitimate reason. However, many companies create their own employment contracts that define the terms and conditions of a notice period.
British law requires team members and employers to notify the opposite party of departure or dismissal. The notice period’s length depends on the employment period’s duration.
No matter the country, an employment contract can determine the correct procedure for the notice period.
Statutory vs. contractual vs. probationary notice periods
Statutory notice periods are the legal minimum amount of notice required by law that a person or organization must give before resignation or dismissal. This period often depends on the length of service and varies by jurisdiction.
Contractual notice periods, on the other hand, are defined within the employment contract and may be longer than the statutory requirement. Probationary notice periods are typically shorter and apply during the initial phase of employment when assessing the suitability of a new hire.
Why are notice periods required?
Notice periods are essential in employment, primarily because they benefit both the team member and employer.
Legal compliance
In many jurisdictions, employment laws require notice periods. This legal requirement ensures that both employer and team member have adequate time to prepare for the transition.
For instance, labor laws in some countries require employers to give notice before terminating a person, except in cases of gross misconduct. This protects individuals from sudden unemployment and allows them to find new employment.
Operational continuity
Notice periods provide employers with a buffer period to manage the recruitment and training of new staff. This helps maintain employee performance and operational continuity, especially in roles critical to the business’s day-to-day operations.
The notice period ensures sufficient time for knowledge transfer and for the new recruit to acclimate to their new role without undue pressure.
Employer-employee relationships
Notice periods provide a respectful and professional end to the employment relationship. They allow both parties to part ways on amicable terms, helping maintain a positive reputation for both the employer and the person leaving.
Establishing a notice period policy can positively contribute to:
- Continuous productivity
- High morale
- Healthy employee-employer relationships
- Positive workplace reputation
In short, the notice period is common decency. It enables HR personnel to search for an appropriate candidate to fill the vacancy and helps departing team members transition smoothly while maintaining positive relationships.
Financial planning
Notice periods provide individuals with a predictable timeline for financial planning. Knowing their income will continue for the length of the notice period allows individuals to budget strategically and manage their expenses as they seek new employment.
Psychological readiness
Notice periods provide people with a timeframe to adjust to the change in their professional lives. This period can be used for psychological preparation and practical arrangements, such as relocating for a new job or handling personal affairs related to the change.
<< Use an offboarding checklist to build an effective exit experience. >>
How long is a notice period in employment?
In the United States, there is no federally mandated notice period for resigning team members. It’s common practice for people to offer two weeks’ notice. However, this is guided by workplace norms and individual employment contracts rather than law.
A longer notice period, typically around four weeks, might be expected for specialized or senior roles to ensure a smooth transition.
In contrast to the United States, countries like Denmark and the United Kingdom have statutory notice periods that vary based on the length of employment and are stipulated by law.
In the UK, the statutory minimum notice period required by an employer starts at one week if the person has been with the company for more than a month but less than two years. This period increases by one week per year of service, up to 12 weeks for 12 years or more.
A notice period also differs depending on the employment contract and whether the former team member has committed gross misconduct or is on probation.
Considerations for determining a notice period length
When determining the right notice period, it’s important to consider how long it will take to replace a team member. This is especially true for more senior roles where the recruitment process can take longer.
It’s also worth accounting for any projects the departing person may be involved in when they give their notice. Too short a notice period can leave other team members in the lurch, hindering performance and productivity.
It may also take a while for a new hire to become familiar with their role. Allowing time for a smooth handover between the departing professional and the new hire can reduce time to productivity.
The right notice period balances the needs of the former team member with the needs of the company, ensuring a successful transition that keeps everyone involved on good terms.
<< Use an offboarding checklist to give your people an exceptional exit experience. >>
Different notice period scenarios and alternatives
While many professionals work through their final weeks, there are several scenarios where organizations—and individuals—may approach notice differently. Whether it’s offering payment in lieu of notice or responding to cases like gross misconduct, understanding these variations helps teams maintain compliance, reduce risk, and ensure smoother transitions.
Payment in lieu of notice
An organization may decide that a person shouldn’t work through their notice period. In this case, they can offer payment in lieu of notice. This ends the employment immediately while paying out the full value of the notice period in a lump sum. This approach enables a clean break and minimizes disruption, particularly if the individual is unlikely to remain fully engaged after resigning.
Garden leave
Garden leave keeps the person on payroll for the duration of their notice period, even though they are asked not to perform their usual duties or come to the workplace. They continue to receive their regular salary and benefits, but cannot start a new role—especially with a competitor—until the notice period ends. This helps protect sensitive information and business relationships during the transition.
Garden leave is often used for senior professionals or those with access to confidential data, where their continued presence might pose a risk. Unlike payment in lieu of notice, which ends employment immediately, garden leave maintains the contractual relationship without active involvement.
Zero-hour contracts
Zero-hour contracts often lack statutory notice period requirements. Under these agreements, workers can decline work without providing notice, effectively ending their employment without formal resignation.
Conversely, employers can stop offering work without notice, although the contract remains in place until formally terminated by either party. Employers use these contracts to hire seasonal workers or bring on extra staff at short notice. These contracts also offer people flexible work hours, making them ideal for those seeking temporary or adaptable schedules.
Gross misconduct
In cases of gross misconduct, employers typically have the right to terminate employment without the full notice period. Depending on the region, people may lose certain payments or benefits if termination arises from gross misconduct.
Holiday entitlement
Employers should address how holiday or vacation entitlement applies during a notice period. Depending on local labor laws and contractual agreements, holiday entitlement might be paid out or utilized during the notice period.
How HR leaders can implement an effective notice period system
HR leaders can nurture a culture that uses notice periods effectively through these tactics:
1. Communicate a clear employment contract
The employment contract should explain the notice period policy in simple language and clearly outline the obligations of the team member and employer.
Communicate these details clearly during onboarding and revisit them in periodic reviews. Providing FAQs or a dedicated session on notice period policies as part of training can also enhance understanding and compliance.
Incorporating employee management software can streamline this process. HR teams can use the platform’s customizable templates and automated workflows to communicate all contractual details (including notice period policies) across the organization.
This reduces the risk of misunderstanding and ensures all team members can access policy updates through a centralized platform.
2. Present incentives to adhere to notice periods
Companies can consider providing severance pay or a discretionary bonus to motivate team members to notify their employer in advance. Before launching any incentive, have HR and legal professionals review the plan to guarantee compliance with local government severance pay laws.
3. Leverage performance reviews
Documenting unsatisfactory professional conduct in performance reviews enables managers to track negative behavioral patterns. Addressing a problem before it escalates allows people to improve their behavior and minimize the chances of a sudden resignation or dismissal.
4. Hone managers’ communication skills
Equipping managers with problem-solving tools helps them identify the root causes of departures and address these issues, reducing attrition and boosting retention. You can enhance managers’ communication skills by focusing on training for active listening, clear and transparent communication, constructive feedback, and effective conflict resolution.
5. Properly communicate employee exits
When communicating team member exits, first inform directly affected team members through a structured meeting, outlining the transition plan and the impact of their departure. Follow up with a broader, respectful company announcement that maintains the departing person’s privacy.
This approach ensures clarity and maintains morale while respecting all parties involved.
6. Work on a smooth transition
A structured process for the handover of responsibilities can make transitions smoother. This might involve detailed handover documents, cross-training of team members, staggered departures if multiple people leave, and a clear offboarding process.
<< Download a free offboarding checklist to make every departure smooth and positive. >>
7. Conduct employee exit interviews
To optimize exit interviews, schedule them one to two weeks before departure to ensure relevant and reflective feedback. Conducting the interviews in a confidential setting will encourage open and honest communication. Asking the same questions of every leaver can help HR teams track trends in company feedback, but some flexibility can surface more personal or role-specific insights.
This structured approach maximizes the potential of exit interviews, providing critical data to improve retention and workplace satisfaction.
8. Demonstrate goodwill during the notice period
An empathic approach to giving notice helps HR leaders preserve trust, support smoother transitions, and maintain positive relationships with departing team members. Professional etiquette during dismissal and exits can lead to a kinder disengagement process between employer and team member.
How a notice period can improve company culture
The notice period establishes a timeline for the separation process, providing each side with a smoother transition to the next stage. Adherence to the notice period rules demonstrates mutual respect towards the opposite party, an essential part of a healthy employment relationship and a necessity for a flourishing company culture.
<< Download our free resignation notice letter template. >>
Resignation notice letter template for employers
Subject: Notice of termination
[Current date]
Dear [Employee’s name],
I hope you’re doing well. I’m writing to inform you that your employment with [company name] will end on [last working day]. This decision has been made because [explain the reason for the layoff].
Your notice period, as outlined in your employment contract, is [notice period length, i.e., two weeks or one month]. During this time, we expect you to continue your responsibilities and assist with a smooth transition. We’re here to support you and will provide resources to help you in your next steps, including:
[Provide a bullet point list of resources such as:
- A reference letter outlining their role and contributions
- Access to career counseling or job placement services
- Details on final pay, including unused vacation or leave entitlements
- Information about benefits continuation or termination (e.g., health insurance coverage)
- Guidance on returning company property and deactivating system access
- A scheduled exit interview to gather feedback and discuss offboarding]
Please arrange a meeting with our HR team to discuss the details of your departure, including returning company property and finishing any pending projects.
Thank you for your contributions to our team. We wish you all the best in your future endeavors.
Kind regards,
[Name]
[Position]
[Company name]
<<Download our free resignation notice letter template.>>
Sample resignation letter for employees
Subject: Resignation notice
Dear [Manager’s name],
I’m writing to formally resign from my position at [company name], with my last working day being [last working day]. This decision wasn’t easy, and it has required careful thought about my career path and personal goals.
I’m committed to ensuring a smooth transition during my notice period and am ready to help hand over my responsibilities. Please let me know how I can assist in training my successor or transferring duties.
I’ve appreciated the opportunities at [company name] and have enjoyed working with you and the team. I hope we can stay in touch, and I wish the company continued success.
Thank you for your understanding and support.
Sincerely,
[Name]
[Position]
<<Download a free resignation notice letter template.>>
Notice period FAQs
What is a notice period for starting a new job?
When starting a new job, the notice period refers to the amount of time an individual must continue working at their current job after accepting an offer but before they start the new position.
This period allows the team member to complete current projects and helps the employer plan for a replacement or reassignment of duties. At the same time, it gives the employer a chance to plan for a replacement or redistribute duties.
What is a correct notice period?
A “correct” notice period can vary widely based on the contractual agreement between the employer and team member, the person’s role and seniority, and local labor laws.
Notice periods are typically two weeks. For more senior-level positions, notice periods can be three to six months. This longer time frame allows for a seamless transition in leadership and responsibilities.
What is a notice period on a job application?
On a job application, a notice period refers to how long you’ll need to work for your current employer before you can sever ties with the company and move on to your new role at another organization.
A clear availability or notice period gives time for wrapping up ongoing projects, handing over responsibilities, and minimizing any disruption to the current workplace. It also offers employers the chance to find a suitable replacement.
Can a notice period be negotiated?
Employers and their people can both negotiate notice periods. As a team member, you might need to start a new role sooner or require flexibility due to personal circumstances. As an employer, you may need a longer handover period for complex roles or might agree to a shorter notice period to maintain team morale.
The key is open, transparent communication between both parties. Employers are typically more receptive to adjusting timelines when the conversation happens respectfully and when the departing team member has been a valued contributor to the organization.
Can team members use time off after giving notice?
Generally, team members can use accrued time off after giving notice, though it depends on company policy and local laws. Some organizations allow using remaining paid time off (PTO) during the notice period, while others prefer to pay out unused leave. It’s best to discuss your plans with HR or your manager to make sure you’re on the same page and to ensure a smooth transition.
Recommended For Further Reading
What is a notice pay period?
The notice pay period refers to the timeframe during which a team member continues to receive their salary after giving or receiving notice of termination. This aspect ensures a smooth transition. During this period, people are typically expected to fulfill their duties or, in some cases, receive payment without needing to work, depending on the arrangement to which both parties agreed.
Meet Bob
Need some support? The Bob HR platform makes notice period management simple with automated HR workflows, collaborative workforce planning, self-service opportunities, and a centralized, secure repository.
Bob can handle your notice period needs, but it doesn’t stop there. From out-of-the-box onboarding, workflows, performance management, and compensation management to integrations with leading payroll providers and more, Bob’s breadth of core HR functionally gives your team everything needed to operate efficiently.
HR teams can use Bob’s complete HR system for:
- Workforce Planning: Optimize workforce productivity and build hiring plans that track all current and future position openings
- People Analytics: Track KPIs including retention, growth, headcount, and absenteeism to gain insights into your team
- Hiring: Streamline applicant tracking and interviews, build a strong candidate pipeline, and provide a seamless hiring experience that puts people first
- Onboarding: Use Bob’s onboarding walkthroughs to automate your onboarding process and give new joiners a warm welcome experience
- Payroll: Reduce payroll preparation time from hours to minutes with a centralized dashboard
- Core HR: Automate HR processes and store all HR documentation on a single, easily accessible platform
