Free UK employment calculator
Notice period and notice pay calculator
Find the minimum notice an employer must give, compare it with the contract, and work out notice pay. Covers payment in lieu of notice and how it is taxed.
Figures checked 15 October 2026 · England, Wales and Scotland
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How it is worked out
Once an employee has worked for you for one month, the statutory minimum notice you must give is (Employment Rights Act 1996, s86(1)):
- one week, if they have less than two years' service
- one week for each complete year of service, from two years up to 12
- 12 weeks, once they have 12 years' service or more
An employee only has to give one week, whatever their service (s86(2)). The contract can require more from either side, never less.
Pay during notice depends on more than the length. If the employer's contractual notice is no more than six days longer than the statutory minimum, sections 88 to 91 protect pay during the statutory notice period even if the employee is sick, on holiday or on family leave. If it is at least a week longer, the contract alone decides (s87(4)).
A week's pay is the normal weekly pay for normal hours, or a 12-week average where pay varies (ss221 to 224). Unlike redundancy pay, it is not capped.
A payment in lieu of notice depends on the PILON clause, which may cover benefits, pension contributions or allowances as well as salary. The figure here is a basic-pay estimate, not the amount due under your clause. It is taxed as earnings.
Worked example
Tom started on 10 January 2020 and you give him notice on 9 January 2026. He has five complete years, so the statutory minimum is five weeks. His contract says one month, which is shorter, so five weeks applies and his notice ends on 13 February. If he goes off sick during it, he is still entitled to his normal pay for those five weeks, less any sick pay he receives.
Questions employers ask
+What is the statutory minimum notice period in the UK?
An employer must give one week's notice to an employee with between one month and two years' service, then one week for each complete year of service, up to 12 weeks after 12 years (Employment Rights Act 1996, s86). Under one month's service there is no statutory minimum.
+How much notice does an employee have to give?
At least one week once they have been employed for one month, whatever their length of service. The contract can require more, and usually does.
+Which applies, the contract or the statutory notice?
Whichever is longer. A contract can give more notice than the statutory minimum but never less (s86(3)).
+Is notice pay capped like redundancy pay?
No. The weekly pay cap in s227 does not apply to notice pay, so it is based on the employee's full weekly pay.
+How is notice pay worked out for variable pay?
Where pay varies, a week's pay is based on the average over the 12 weeks before notice is given (ss221 to 224).
+Is pay in lieu of notice taxable?
Yes. Since 6 April 2018, payment in lieu of notice, or the post-employment notice pay HMRC works out on a termination payment, is taxed and subject to National Insurance as earnings. It never falls within the £30,000 tax-free amount.
+What if the employee is off sick during their notice?
It depends on the notice the employer must give under the contract. If it is less than a week longer than the statutory minimum, the employee must get at least their normal pay for the statutory notice period while sick, injured, on holiday or on family leave, with sick pay or SSP counting towards it (ss88 and 89). If the contractual notice is at least a week longer, those protections fall away and pay follows the contract and any statutory sick pay scheme (s87(4)). Any notice beyond the statutory minimum is always paid as the contract says.
+Is the PILON figure the amount I must pay?
Not necessarily. A payment in lieu of notice is whatever the PILON clause says, which may include benefits, pension contributions or allowances. The calculator gives a basic-pay estimate only.
Sources
- Employment Rights Act 1996, s86 (minimum notice)
- Employment Rights Act 1996, s87 (rights during notice)
- Employment Rights Act 1996, s88 (pay during notice)
- Employment Rights Act 1996, s89 (pay during notice with no normal working hours)
- Employment Rights Act 1996, s221 (a week's pay)
- Employment Rights Act 1996, s227 (cap on a week's pay)
- GOV.UK: Notice periods
- HMRC Employment Income Manual EIM13880 (post-employment notice pay)
This calculator gives a general estimate based on the law and statutory figures in force on 15 October 2026 for England, Wales and Scotland. It is not legal advice and does not take account of your contract, your policies or any special circumstances. Contractual terms can give more than the statutory minimum, never less. Northern Ireland has its own rules and limits and is not covered. Nothing you enter is stored or sent anywhere: the sums are done in your browser.