How much notice are you owed — and what’s the tax on PILON?
Statutory minimum is 1 week per year of service, up to 12 weeks. But PILON is fully taxable since 2018. Enter your details to see the gross and net payment in lieu, or how long garden leave runs.
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How it works
Statutory minimum notice
Under the Employment Rights Act 1996: the employer must give at least 1 week's notice for each complete year of service, minimum 1 week, maximum 12 weeks. Once you have worked for at least 1 month, the minimum applies.
Contractual notice
Your contract may specify a longer notice period — e.g. 3 months for a senior role. If contractual notice exceeds the statutory minimum, the contractual period applies. The calculator uses whichever is higher.
PILON — Payment In Lieu Of Notice
Since April 2018, all PILON payments are taxable as employment income, subject to Income Tax and National Insurance. There is no longer a tax-free element for the notice portion (unlike the £30,000 exemption for redundancy payments).
Garden leave
The employee remains employed and on payroll but does not attend work (often to protect commercial interests or client relationships). Full salary continues — no PILON tax implications arise since it's regular employment income.
Employee notice to employer
The statutory minimum an employee must give is 1 week (once past 1 month's service), regardless of length of service. Your contract may require more — check your contract carefully before resigning.