Notice Pay by Length of Service

Notice Pay by Length of Service Table

How Notice Pay by Length of Service Works

The statutory notice period is based on complete years of continuous employment.

Once you have worked for at least one month, you normally have at least one week’s statutory notice.

After two complete years, the notice period increases by one week for every complete year until the statutory maximum of 12 weeks is reached.

Notice Pay With 1 Year of Service

An employee who has worked continuously for 1 year is normally entitled to at least:

If their contract gives 4 weeks, the longer contractual notice period can apply instead.

Notice Pay With 2 Years of Service

At two complete years, statutory notice becomes:

This is also the point at which an eligible employee may normally start qualifying for statutory redundancy pay if the other redundancy conditions are met.

Notice Pay With 5 Years of Service

An employee with 5 complete years of continuous service is normally entitled to:

If they earn £600 per week and work the full notice period, that could mean:

This is an illustrative example before tax and National Insurance.

Notice Pay With 10 Years of Service

An employee with 10 complete years normally receives:

Again, a contract can provide more.

Notice Pay With 12 Years or More

Once an employee reaches 12 years of continuous service, statutory notice stops increasing.

An employee with 15, 20 or 25 years of service still has a statutory minimum of 12 weeks, unless their contract gives them more.

What If Your Contract Gives More Notice?

The statutory notice period is only the legal minimum.

Your contract, written statement or staff policy can provide a longer notice period.

For example:

• statutory notice based on service: 6 weeks;
• contractual notice: 3 months.

In that situation, the longer contractual period may apply.

An employer cannot normally use a contract to give less than the statutory minimum.

How Is Notice Pay Calculated?

Notice pay is linked to the notice period and the employee’s applicable pay.

GOV.UK says notice pay is generally based on average weekly earnings over the 12 weeks before the notice period starts.

The exact calculation can depend on whether the employee has:

• fixed pay and fixed hours;
• variable hours;
• regular overtime;
• commission;
• bonuses; or
• other contractual pay arrangements.

Worked Notice Pay Example

Assume an employee:

• has 8 complete years of service;
• earns £550 per week;
• has no longer contractual notice period.

Do You Have to Work the Notice Period?

Usually, yes.

If you are made redundant and asked to work your notice, you remain employed until the final employment date and continue receiving normal notice pay.

However, the employer may use:

• PILON;
• garden leave;
• an agreed early-leaving arrangement; or
• another contractual option.

How PILON Works With Length of Service

PILON means payment in lieu of notice.

Instead of working the full notice period, employment ends earlier and the employee receives pay relating to the notice period.

For example, an employee with 9 years of service has 9 weeks’ statutory notice.

If PILON is used and weekly basic pay is £700:

The exact amount can depend on contract terms and benefits.

Can Notice Period Add Another Year to Redundancy Service?

Potentially, yes.

Acas explains that where statutory notice is paid in lieu, the redundancy-pay relevant date can include the statutory notice period that would have been worked.

This can create another complete qualifying year.

Is Notice Pay Separate From Redundancy Pay?

Yes.

Notice pay and statutory redundancy pay are separate entitlements.

An eligible employee may receive:

• pay while working notice or PILON;
• statutory redundancy pay;
• enhanced redundancy pay;
• unused holiday pay; and
• final salary or other contractual amounts.

Read: Can You Get Redundancy Pay and Notice Pay Together?

Notice Pay With Less Than 2 Years of Service

An employee does not need two years of service to have statutory notice rights.

If you have worked for at least one month but less than two years, the statutory minimum notice is normally:

This is different from statutory redundancy pay, which normally requires at least two years of continuous employment.

Do Partial Years Count?

For service between two and 12 years, statutory notice is one week for each complete year.

So:

• 4 years 2 months = 4 weeks;
• 4 years 9 months = 4 weeks;
• 5 complete years = 5 weeks.

Your contract can still provide more than this.

What About Garden Leave?

Garden leave keeps the employee employed during the notice period but usually removes the requirement to attend work.

The employee normally continues to receive:

• salary;
• contractual benefits; and
• other normal employment rights during notice.

Garden leave is different from PILON because employment continues until the notice period expires.

Is Notice Pay Taxable?

Yes.

Notice pay, PILON and amounts treated as Post-Employment Notice Pay are generally employment earnings and are normally subject to Income Tax and National Insurance.

This is different from qualifying redundancy compensation, which can have different termination-payment tax treatment.

Notice Pay if Your Employer Is Insolvent

If the employer is formally insolvent and cannot pay the statutory notice owed, eligible employees may be able to claim statutory notice pay from the Insolvency Service.

The government calculates statutory notice at:

• one week for each complete year of employment;
• up to a maximum of 12 weeks.

For qualifying claims from 6 April 2026, the Insolvency Service weekly payment is capped at £751.

Insolvency Notice Pay Example

Suppose an employee has:

• 10 years of service;
• normal weekly pay of £900;
• no notice payment because the employer became insolvent.

Statutory notice entitlement:

For a qualifying 2026 government claim, the weekly amount is capped at £751:

The final Insolvency Service payment can be affected by earnings or benefits during the notice period.

What If Your Employer Gives Too Little Notice?

If you believe you have not been given the correct notice period:

1. check your exact continuous service dates;
2. compare them with the statutory notice table;
3. read your contract for any longer entitlement;
4. raise the discrepancy with your employer in writing; and
5. keep copies of all correspondence.

Acas says an employee may potentially have a wrongful-dismissal claim if the correct notice is not provided and the issue cannot otherwise be resolved.

Notice Pay by Length of Service Checklist

1. Confirm your continuous employment start date.
2. Confirm your final employment date.
3. Count complete years of service.
4. Use the statutory notice table.
5. Check your contract for longer notice.
6. Confirm whether you will work notice or receive PILON.
7. Check your weekly-pay calculation.
8. Check tax and National Insurance deductions.
9. Keep redundancy pay separate from notice pay.
10. If your employer is insolvent, check the Insolvency Service notice-pay route.

Frequently Asked Questions

Final Answer: Notice Pay by Length of Service

Notice pay by length of service follows a simple statutory scale in the UK.

If you have worked for at least one month but less than two years, the minimum statutory notice is normally 1 week.

Between 2 and 12 years, you normally receive 1 week’s notice for each complete year of service.

At 12 years or more, statutory notice reaches its maximum of 12 weeks.

Your contract can give you more than these statutory minimums, but normally not less.

Notice pay is generally linked to the applicable notice period and average weekly earnings. It is separate from redundancy pay and is normally taxable as employment earnings.

If PILON is used, the statutory notice period can sometimes also affect the relevant date used to calculate qualifying redundancy service.