Notice and pay in lieu of notice

Updating authors: Max Winthrop and Zuraida Curtis

Summary

• Notice is the length of time that the employer or employee must serve each other to terminate the employment relationship. (See Overview)
• Statutory notice is the minimum notice stipulated by legislation that employers and employees must give each other. (See Statutory minimum notice)
• Contractual notice is usually contained in the employee's contract of employment and must not be less than the statutory minimum notice. (See Contractual notice)
• Common law notice applies where there are no contractual terms relating to notice and implies a reasonable length of notice into the contract of employment. (See Common law notice)
• Ideally, notice should be given in writing. (See General principles on serving notice)
• In some circumstances, an employer may agree to an employee resigning without serving their full notice. (See Agreeing to termination without notice or reduced notice)
• During the notice period, employees are generally entitled to the same rights and benefits as they had before notice was served. (See Employee rights and obligations during the notice period)
• Where an employer does not wish the employee to work their notice period, it may decide to pay them in lieu of notice. (See Pay in lieu of notice)
• Dismissing an employee without notice or insufficient notice constitutes a breach of contract. (See Dismissal without notice or insufficient notice)
• Where an employee refuses to work their notice, this constitutes a breach of contract. (See Resignation without notice or insufficient notice)
• Employees can claim damages for breach of contract. (See Enforcement and remedies)