Once your resignation has been accepted by your employer, you are then in your notice period. This is usually 2 to 4 weeks, but can be any number of weeks or months; details should be included in your employment contract or should be confirmed by your employer.
You may also be working a notice period due to redundancy.
During your notice period, the terms and conditions of your employment will normally remain the same and you will continue to be entitled to your normal pay and benefits.
You have the right to be paid a minimum hourly rate of pay during your notice period for any time that you are absent from work due to:
- Sickness
- Holiday
- Maternity/paternity/adoption leave
In addition, if you are temporarily laid off or ready and willing to work, but your employer does not provide work you may be entitled to the minimum hourly rate of pay.
Your pay during these periods is calculated by dividing your average week's pay by the number of hours you usually work (this may be detailed in your employment contract).
Exceptions to this include:
- If you are working a notice period longer than the minimum period by one week or more
- If you take part in a strike after giving notice
- You will not be entitled to a minimum pay rate during these periods.
- You will not be entitled to the minimum pay rate for any time off requested during your notice period. The exception to this may be:
- Union duties
- Time off to look for work or arrange training if you are facing redundancy
- Time off for antenatal care
If your employer wants to end your employment, but is unable to pay or compensate you due to insolvency, you may be able to claim the money you are owed from the Insolvency Practitioner.
Notice pay is taxed at the usual rate as your salary.
Payment in lieu of notice (PILON) is only taxable if this is stated in your contract of employment or if it is normal practice in your workplace. If the PILON, redundancy and any other compensation totals more than £30,000, anything over this amount is taxable at the usual rate.
If you need advice about an employment matter,
contact Legal Advice Helpline on 0845 600 6980 to speak to one of our specialist advisors about employment law.