Notice Period
Also called: Notice of Termination · Resignation Notice
A notice period is the advance warning one party must give before ending an employment relationship. It protects the employer’s continuity and the employee’s income security, and is often the most negotiated single term in an employment contract.
In more detail
Symmetry is the first thing to check. A contract requiring three months from the employee but one month from the employer is common and rarely justified by anything other than bargaining position.
Payment in lieu of notice lets either side end the relationship immediately by paying out the notice period instead of working it. Whether this right exists, and who holds it, changes the practical flexibility for both parties considerably.
For senior roles, notice interacts with garden leave, restrictive covenants, and bonus entitlements — a long notice period combined with garden leave can effectively extend a non-compete without the enforceability problems a non-compete would face.
Statutory minimum notice periods apply in most jurisdictions and typically scale with length of service. A contract may improve on the statutory minimum but generally cannot reduce it.
What our lawyers check
- Whether notice obligations are symmetrical between the parties
- Whether payment in lieu of notice is available, and to whom
- How notice interacts with garden leave and restrictive covenants
- Treatment of accrued leave, bonus, and equity during the notice period
Contracts where this clause matters
Related terms
This definition is general information about commercial contracting practice, not legal advice. How a clause operates depends on the specific wording of your agreement and the law that governs it. For advice on your contract, have it reviewed by a lawyer.
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