What Is a Notice Period?
- What Does Notice Period Mean in a Job Application?
- Typical Employee Notice Periods
- Final Thoughts
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When you’re looking for a new job or applying for your first one, you may see the term “notice period” pop up in the applications. So, what exactly is a notice period? Before you go any further in your job search, it’s very important to understand what it is and how companies use it.
At first glance, it may seem simple and straightforward, but there are a number of things to be aware of when you see this term.
A notice period is defined as the time between the receipt of an employee’s letter of dismissal and the end of their last working day.
This time period is typically given to the employee by the employer prior to their official employment ending. This can also refer to the time between an employee’s resignation date and the last official working date.
Depending on your employer and the relationship you have with the organization, you should be aware that employers typically reserve the right to terminate your employment contract without notice if terms for dismissal revolve around gross misconduct.
In this article, we’ll discuss what a notice period means on a job application, what the different notice periods are, and how they differ by geographical location.
What Does Notice Period Mean in a Job Application?
If you see the term “notice period” in a job application, the company is asking you to consider how much time you need to inform your current employer that you are leaving for new employment.
The interviewer will typically want to factor this into a potential job offer to ensure they’re giving you enough time to end on good terms with your previous employer. It also helps set themselves up for success by appropriately assigning your start date.
Depending on your situation, you may need to give more or less notice. If you aren’t currently employed, then you can list that you are available to begin immediately. If you have a job that only requires two weeks’ notice with a minimal transition, you can provide that detail.
For higher-level jobs or jobs that bring more complicated responsibilities, your notice period may be longer.
When you are leaving your current employment, consider the following:
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Replacement. How long do you think it would be for your company to find a replacement if they began their search after your resignation? The typical period of time is two weeks, but you may decide on more, depending on your circumstances.
It’s typically best practice to offer to train your replacement on your last day to ensure a smooth transition process.
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Transition period. Consider how long it will take to transition your team from your exit. If your position is entry-level or slightly above, it might be easier for your team to take on your work while searching for a replacement.
However, if you are a manager of multiple individuals with many responsibilities, this period of time could take much longer to not only transition projects but ensure your team is set up for success after you leave.
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Projects in progress. Consider the projects or work that is currently on your plate and in progress. How will your resignation impact these projects? This is an important consideration to make, especially if you are leading projects that you specifically advocated for or that you play a large role in.
Sometimes the transition is inevitable, but if you can finish as many projects as you can before you leave, you’ll be remembered positively for it.
Any number of these things can impact the length of time you feel is necessary for your notice period. It will always depend on the team, the individual employee, the job, and the company. Pick the appropriate notice time for the appropriate situation.
There is also a term you may hear called “pay in lieu.” This is usually in instances where your employer asks you to leave the day you’ve given your notice.
In exchange for the time you might have spent still working for the company, they might offer to “pay in lieu.” This basically means that the company will give you a payment that takes place during what would typically be your notice period.
There are a few caveats, including the fact that this can only happen if it states so in your contract. If it isn’t in your employment contract and you don’t want the payment and would rather work, then you are eligible to work through the period, despite what your employer might want.
However, if you receive the one-time payment, it should be the same amount of money you would have earned had you worked the typical notice period.
If your resignation period should be one month, you should get one month’s pay for your salary or hourly wages. This should also include holiday pay as well as a commission or any alternative compensation for your loss of benefits.
Your employer might choose something called “garden leave,” which is when they ask you not to work from the office, at home, or elsewhere. This is common for higher-level positions and protects the employer by restricting the individual from accessing company information, confidential information, or conversations with colleagues or clients.
You may also look over your contract to see that you have some restrictions for your next position. This may include having contact with old customers, starting a business with a similar product in a similar industry, or working for competitors. If you try to bypass any of these restrictions, be forewarned that your employer has the right to take you to court over them.
If you’re uncertain about the restrictions in your contract, it’s a good idea to reach out to your human resources (HR) department to ask them specifics on what’s allowed and what’s not.
You can ask them to keep the conversation private so that your boss or colleagues don’t find out that you’re looking for a new job. Remember, it’s better to ask specifics than risk making a mistake that might rope you into a court case.
Typical Employee Notice Periods
The typical notice periods for most individuals is two weeks or one month. Employee notice periods are typically determined by your employment contract that you signed when you first got hired, so be sure to check that before you give any type of notice.
That way, you can prepare yourself for the transition out and give your new employer the information to give you an appropriate start date.
For individuals who have been at their jobs for over two years, it’s common practice to give your company at least one month’s notice. A notice period of 30 days will allow your company to adequately hire a replacement and allow you the time to hopefully train them.
However, if you are an employee who has been with the company for under two years, a notice of two weeks is fine.
These are suggested timelines if you are in a country without documented recommended notice periods. However, a few notice periods are specifically defined in certain countries to be aware of if you leave or are dismissed from a job.
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The United Kingdom. The UK has statutory redundancy notice periods, which are at least one week if the employee has been with the company from one month to two years, and one week’s notice for each year if employed between two and 12 years.
If you have been employed for over 12 years, it’s recommended to give 12 weeks notice.
These guidelines are considered the minimum, so many employees or employers can choose to give even longer notice periods if necessary.
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Poland. The same notice period applies to both employee and employer if either should choose to end their agreement.
Unless other terms are agreed upon mutually, it’s expected to provide two weeks of notice if employed less than six months, one month notice if employed less than three years, or three months notice if employed for longer than three years.
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Denmark. Denmark has notice periods for their white-collar workers, which are called Funktionærloven.
This law of the legal relationship between employees and employers requires one month of notice if employed under six months, three months if under three years, four months if under six years, five months if under nine years, and six months if more than nine years. These are some of the longest required notice periods in the world.
Final Thoughts
Think of notice periods as respectful and good practice for leaving jobs on good terms, even if you are dismissed. The employee and employer entered into a contractual agreement at one point and owe it to each other to part on the best terms possible.
Giving adequate notice time before going to your next job is respectful to your current employer. It also shows your new employer that you are a loyal and courteous employee who would give them equal respect should you leave their place of employment.
When an employee has resigned from the services, one of the most important time periods employers and employees have to go through is the Notice Periods. Notice periods are quite ambiguous in terms of length of notice periods, leave or benefits eligibility for employees serving their notice periods.
Notice periods are crucial periods during which employers must take important steps to ensure that the exiting employee is handing over all responsibilities to his/her successor and the transition is smooth.
How do you decide on the length of the notice period?
The length of the notice period is usually mentioned in the employment contract at the time of joining. The length is usually different for confirmed employees and employees on probation.
Probationary employees have a shorter notice period as compared to per permanent employees. Athough there isn’t any specified time period , notice periods usually last for 30 Days for permanent employees and 15 days for employees of probation .
It is also observed that notice period lengths change according to industry. IT industry or the Banking industry usually has employees serve 90 Days of notice as well.
What is the “notice period buyout option”?
Otherwise known as salary in lieu of notice, this is where your hiring organization will “buyout” the employee from his old employer by making a certain payment for the notice period not served .
For example – If an employee has a notice period of 30 Days and is unable to serve this entire period as the new hiring organization has set an immediate joining date, an employee has to pay the 30 Day salary in lieu of the notice period not served .
This amount is mentioned as “Recovery Amount” in the Full & Final Settlement Statement that the employee receives on his last working day. This amount is then reimbursed to the employee by the new hiring organization at the time of joining.
Mostly companies buy out employees’ notice periods so that the employee can join them at the earliest.
Are the employees on Notice Periods eligible for Leaves?
The purpose of a notice period is for a smooth transition and smooth handing over process. Usually employees on notice periods are encouraged to not take any privileged leaves. Privileged Leaves are en cashed in their full & final settlement statement.
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