What is a notice period?
A notice period is the time between the day an employee or employer gives notice to end the employment and the employee’s last working day. Its length is set by law, a collective agreement or the employment contract, and in many countries it grows with length of service. A contract can give more notice than the legal minimum, but not less.
What does a notice period mean in practice?
During the notice period the employment continues as normal: the employee keeps working, receives full pay and benefits, and usually hands over their work. The period gives the employer time to find a replacement and the employee time to find a new job.
Notice can run in both directions, and the two periods are not always the same. Many laws set a minimum the employer must give when dismissing someone and a separate, often shorter, minimum the employee must give when resigning. A probation period usually allows shorter notice on both sides.
Statutory notice periods by country
The table shows the minimum notice an employer must give a permanent employee. Contracts and collective agreements often require more.
| Country | Statutory minimum notice | Notes |
|---|---|---|
| United States | None (employment at will) | The WARN Act requires 60 days’ notice of a plant closing or mass layoff at employers with 100 or more employees. Some states have their own versions. |
| United Kingdom | 1 week (1 month to 2 years), then 1 week per year, up to 12 weeks | An employee must give at least 1 week after 1 month’s service. Contracts often set longer periods. |
| Canada (Ontario) | 1 week (under 1 year) rising to 8 weeks (8 years or more) | Applies after 3 months’ service. Each province sets its own scale. |
| Germany | 4 weeks to the 15th or the end of a month | For the employer this rises with service: 1 month at 2 years, 2 at 5, 3 at 8, 4 at 10, 5 at 12, 6 at 15 and 7 months at 20 years, always to the end of a month. During probation, 2 weeks. |
| France | 1 month (6 months to 2 years), 2 months (2 years or more) | Below 6 months’ service the collective agreement or local custom applies. |
| India | 1 month for workers with 1 year’s service | Or pay in lieu, under the Industrial Relations Code. Other employees follow their contract and the state Shops and Establishments Act. |
| Brazil | 30 days plus 3 days per year of service, up to 90 days | Worked or paid in lieu (aviso prévio). |
| Mexico | No statutory notice period | The employer must give written notice of the reason for a dismissal. |
| Singapore | 1 day (under 26 weeks) up to 4 weeks (5 years or more) | Applies where the contract is silent, and must be the same for both sides. |
| Japan | 30 days | Or at least 30 days’ average wages in lieu (Labor Standards Act, Article 20). |
| South Korea | 30 days | Or 30 days’ ordinary wages in lieu (Labor Standards Act, Article 26). |
| Philippines | 1 month for authorised causes | Written notice to the employee and the Department of Labor and Employment. An employee resigning gives 1 month. |
Figures checked in November 2026 against the official sources listed at the end of this page.
Payment in lieu of notice (PILON)
Payment in lieu of notice means the employer ends the employment straight away and pays the salary the employee would have earned during the notice period. Japan and South Korea build this option into the law, while UK employers normally rely on a PILON clause in the contract. Notice pay is normally taxed as earnings: in the UK it is always subject to income tax and National Insurance, unlike part of a severance payment.
Garden leave
On garden leave the employee stays employed and paid for the notice period but does not work and has no contact with clients or colleagues. Employers use it to keep departing staff away from confidential information and customers, especially when the employee is joining a competitor. The contract normally needs to allow it.
When notice does not apply
- Gross misconduct: most systems allow summary dismissal without notice for serious misconduct such as theft or violence.
- At-will employment: in most US states either side can end employment without notice, unless a contract says otherwise.
- Fixed-term contracts: a fixed-term contract that ends on its agreed date may need no notice, although some countries require it or treat non-renewal as a dismissal.
- Constructive dismissal: where the employer seriously breaches the contract, the employee may resign without notice and claim they were dismissed.
How to work out the last working day
Notice normally starts the day after it is given and runs in calendar days, weeks or months, not working days. Some countries add a fixed end date. In Germany the basic four-week notice can only end on the 15th or the last day of a month: notice given on 5 March runs four weeks to 2 April and then to the next permitted date, so employment ends on 15 April. Holidays and sick leave during the notice period usually do not extend it, unless local law or the contract says so.
Leaving early and notice period buyouts
An employee who wants to leave before the end of their notice can ask the employer to release them early. In India it is common for the employee to buy out the remaining notice by paying, or forfeiting, the salary for the days not served, if the contract allows it. Leaving without serving notice and without the employer’s agreement is a breach of contract, but in most countries the employer cannot simply withhold earned wages in response: deductions from final pay are only allowed where the law and the contract permit them.
Employers can also shorten the notice on their side, but usually only by paying for the part not worked, which is payment in lieu of notice.
How TopSource manages notice periods
When TopSource employs your team through our Employer of Record service, we check the statutory, collective and contractual notice that applies in each country, issue notice in the required form and calculate notice pay in the final payroll. Our global payroll team handles the same calculations for your own entities.
Frequently asked questions
What does notice period mean?
It is the time between giving notice of resignation or dismissal and the last day of employment. The employee is still employed and paid during that time.
Is a notice period mandatory?
In most countries, yes: the law sets a minimum that the employer must give and often one the employee must give. The main exception is at-will employment in the United States.
Can a notice period be shorter than the legal minimum?
No. A contract can give more notice than the statutory minimum but not less. A shorter clause is normally unenforceable and the statutory period applies instead.
Do you get paid during your notice period?
Yes. The employee receives normal pay and benefits during the notice period, whether they work it, are placed on garden leave or are paid in lieu.
Can an employer end the notice period early?
Usually only by paying the salary for the rest of the period. Some laws allow this outright, such as Japan and South Korea, while others need a pay in lieu clause in the contract.
Related terms
Sources
- GOV.UK: Redundancy notice periods
- Ontario: Your guide to the Employment Standards Act, termination of employment
- Germany: Civil Code (BGB), section 622
- Service-Public.fr: Préavis de licenciement
- India: Ministry of Labour and Employment (Labour Codes)
- Brazil: Lei 12.506/2011 (aviso prévio)
- Mexico: Ley Federal del Trabajo
- Singapore MOM: Termination with notice
- Japan: Labor Standards Act (English translation)
- Korea Legislation Research Institute: Labor Standards Act and Employee Retirement Benefit Security Act
- Philippines: Labor Code (Presidential Decree 442)
- U.S. Department of Labor: WARN Act