Notice when you're made redundant

How much notice

Your employer must give you at least the statutory minimum, or your contractual notice if that's longer:

• one week if you've worked for them for between one month and two years
• one week for each complete year from two years up to twelve
• twelve weeks if you've worked there for twelve years or more

The years are counted on the day notice is given. Check your contract or offer letter: many give a month or more.

Working it, or being paid in lieu

Usually you work your notice and are paid as normal. Your employer can end your employment straight away and pay you for the notice instead if your contract allows it, or if you both agree. That payment, pay in lieu of notice, should cover the basic pay you'd have earned, plus contractual extras such as pension contributions.

If you're paid in lieu, the date your service is counted to for statutory redundancy pay can move later, to when statutory notice would have ended.

Some contracts allow garden leave: you stay employed and paid for the notice period but don't work.

Time off to look for work

If you've worked for your employer for 2 years or more by the end of your notice, you're entitled to reasonable paid time off during your notice to look for work or arrange training. The pay for this is capped at 40% of a week's pay across the notice period.

Leaving before your notice ends

If you find a new job, you can give your employer written notice that you want to leave earlier. Your employer can object in writing and ask you to stay until the original date. Leaving early without agreement can put your statutory redundancy pay at risk, so agree it in writing first.

Tax

Notice pay is taxed and has National Insurance taken off like normal salary, whether you work it or it's paid in lieu. Only redundancy pay and some other compensation can fall within the £30,000 tax-free limit.