Notice Rights

The giving of notice generally marks the beginning of the end of a contract of employment – but not the end of the rights and duties of both parties in respect of the notice period. At common law, the general rule is that neither party is entitled to terminate an employment contract without giving notice – a presumption now strengthened by a range of statutory rights.

In this Supplement we explain the relationship between common law and statutory notice rules.

In addition, we aim to highlight the importance of notice rights and obligations – often underestimated by employer and employee alike. We outline the law clearly and explain how a failure by either party to the contract of employment to observe the rules governing notice rights and obligations can have a devastating effect on employment protection rights.

This Supplement is set out as follows:

• Chapter 1 examines in detail the interaction between common law and statutory rights to notice. The section also explains how notice in an incorrect form can invalidate notice rights and obligations, and how the parties to a contract of employment can vary the length of the notice period. The section also considers the unique position of fixed-term contracts in relation to notice rights
• Chapter 2 looks at the circumstances in which a party is entitled to give no notice or short notice and how a failure to give sufficient notice may affect employment protection rights
• Chapter 3 considers the rights and duties of both parties during the notice period
• Chapter 4 addresses some of the many practical problems associated with notice rights. In particular, it looks at the remedies available to either party when the other side has broken his or her notice obligations, and at how a payment in lieu of notice can affect both the tax position of payments on termination and the ability of an employer to enforce a restrictive covenant against an ex-employee. This chapter also explains the effect of ‘garden leave’ clauses contained in employment contracts.

The law is stated as at June 2006.