Why use this calculator
When employment ends, whether through resignation, dismissal, or redundancy, both employer and employee are typically entitled to a notice period. Understanding the correct notice period and associated pay ensures you receive what you are owed (or know what you must provide as an employer). This calculator determines whether statutory or contractual notice applies and calculates the total pay due during the notice period.
How to use it
Enter your weekly salary and years of continuous service. If you have a contractual notice period specified in your employment contract, enter it in weeks; otherwise, leave it at 0 to calculate the statutory minimum. The calculator applies the greater of statutory or contractual notice.
The formula
Statutory Notice: 1 week per year of service, minimum 1 week, maximum 12 weeks. If a contractual notice period is specified, the greater of contractual or statutory applies. Notice Pay = Weekly Salary x Notice Period Weeks.
Worked examples
Employee with 8 years of service earning $1,200/week with no contractual notice
8 weeks statutory notice totaling $9,600
Employee with 3 years of service earning $1,500/week with 4-week contractual notice
4 weeks contractual notice (exceeds 3-week statutory) totaling $6,000
When people use it
- Employees verifying their notice period entitlement upon termination
- Employers calculating pay in lieu of notice (PILON) obligations
- HR departments processing termination payments accurately
- Financial planning for income during a transition between jobs
Tips
- Your contract may specify a longer notice period than the statutory minimum; always check your employment contract
- Pay in lieu of notice (PILON) is taxable as earnings, unlike some other termination payments
- During the notice period, all normal contractual benefits continue including pension contributions and holiday accrual
Questions people ask
- Can my employer pay me in lieu of notice?
- If your contract contains a PILON clause, your employer can pay you instead of requiring you to work your notice period. Without a PILON clause, paying in lieu may technically be a breach of contract, though it is common practice. PILON payments are subject to income tax and National Insurance.
- What happens to my holiday during the notice period?
- You continue to accrue holiday during your notice period. Any accrued but untaken holiday must be paid out on termination. Your employer can require you to take outstanding holiday during your notice period, provided they give adequate notice.
- Can I be dismissed without notice?
- Summary dismissal (without notice) is only lawful in cases of gross misconduct such as theft, fraud, violence, or serious insubordination. If you are summarily dismissed without just cause, you have a claim for wrongful dismissal and are entitled to damages equal to your notice period pay.