What If My Employer Doesn't Pay My Notice Period?
Employees are entitled to a minimum statutory notice period — and often longer under their contract. Failure to pay notice pay is a breach of contract.
Quick Answer
If your employer dismisses you without paying your notice period, they are in breach of your employment contract. You are entitled to sue for the unpaid wages as a breach of contract claim in an employment tribunal (up to £25,000) or in the county court. You are also entitled to statutory minimum notice pay regardless of what your contract says.
Full Explanation
Every employee in England and Wales is entitled to a minimum statutory notice period once they have been employed for at least one month. The minimum is one week per full year of service, up to a maximum of twelve weeks (Employment Rights Act 1996, section 86). Your employment contract may provide for a longer notice period — and that contractual entitlement is also legally enforceable.
If an employer dismisses you without giving you the required notice, or dismisses you with notice but does not pay you for it, this is a wrongful dismissal — a breach of contract. Unlike unfair dismissal, there is no qualifying period of employment for wrongful dismissal claims and the claim can be brought from the first day of employment. The remedies are contractual: you are entitled to the wages you would have earned during the notice period, including the value of benefits (company car, pension contributions, health insurance) that you would have received.
Where the employer makes a payment in lieu of notice (PILON), this is only lawful if the contract expressly permits it or if you agree to accept it. Since 6 April 2018, all PILON payments are subject to income tax and national insurance regardless of what the employment contract says.
You can bring a wrongful dismissal claim either in the employment tribunal (for claims up to £25,000, which must be brought within three months less one day of dismissal) or in the county court (for larger claims or where the tribunal deadline has passed, within six years). You cannot recover compensation for injured feelings or distress in a wrongful dismissal claim — this is purely a contractual remedy based on financial loss.
Note the important distinction: wrongful dismissal (failure to give proper notice) and unfair dismissal (dismissal without fair reason and fair process) are separate claims and may both apply in the same situation.
Legal Basis
- §Employment Rights Act 1996, section 86 (minimum notice entitlements)
- §Employment Rights Act 1996, section 88 (rights during notice period)
- §Common law: breach of contract of employment
What To Do
Calculate Your Entitlement
Check your employment contract for the notice period. Compare it with your statutory entitlement (one week per year of service, up to 12 weeks). Identify all benefits you would have received during the notice period (salary, pension, car, health cover) and calculate the total financial loss.
Write to Your Employer
Send a formal written demand for payment of your notice pay, setting out the legal basis and the amount owed. Give them 14 days to respond. This is both a pre-action step and useful evidence if you later go to tribunal or court.
Notify ACAS and Attempt Conciliation
If a tribunal claim is intended, notify ACAS for Early Conciliation first. This is mandatory before issuing a tribunal claim and may resolve the dispute quickly.
Bring a Tribunal or Court Claim
Issue an employment tribunal claim (Form ET1) for wrongful dismissal if the amount is under £25,000 and within three months less one day, or issue a county court claim using Money Claims Online for larger amounts or if the tribunal deadline has passed (county court has a six-year limitation period).
Consider Whether Unfair Dismissal Also Applies
If you have two years' service, assess whether you also have an unfair dismissal claim. The two claims can often be brought together and the compensation may be higher under the unfair dismissal route if losses are significant.
Important Deadlines
Important Warnings
Do not confuse contractual notice with the employer's right to place you on garden leave — during garden leave you are still employed, still entitled to full pay and benefits, and must not work for a competitor.
If you accept a lower payment without reserving your right to claim the balance, you may waive your entitlement to the full amount.