Notice period

Notice period. The time between notice of termination and the end of employment. The law sets a minimum by length of service; senior contracts often set more.

What it is

The notice period is the time between one side giving notice to end an indefinite contract of employment and the end of the employment.

The statutory minimum

The Employment and Industrial Relations Act (Cap. 452), article 36(5), sets the minimum by continuous service with the same employer:

Continuous employment Minimum notice
More than one month, up to six months One week
More than six months, up to two years Two weeks
More than two years, up to four years Four weeks
More than four years, up to seven years Eight weeks
More than seven years Eight weeks plus one week for every further year or part of a year, up to twelve weeks

For technical, administrative, executive or managerial posts, the employer and employee may agree longer periods (article 36(5)(f)). Senior contracts usually do.

Notice runs from the working day after it is given (article 36(7)), and may not be given during maternity leave or certain periods of incapacity.

When notice is not given or not worked

  • If the employer does not give the notice due, it must pay the wages for the notice period (article 36(10)).
  • If the employee does not, they owe the employer half the wages for that period (article 36(10)).
  • When the employer gives notice, the employee may stop working at any time during it and require half the wages for the rest of the notice (article 36(8)).
  • When the employee gives notice, the employer may let them work it out or pay the wages for the rest of it (article 36(9)).

For these statutory payments, “wages” excludes overtime, bonuses, allowances, remuneration in kind and commissions (proviso to article 36(12)). A contract may provide more. See pay in lieu of notice.

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