What is a Notice Period? (Complete Guide)

The notice period is the time interval in which an employee has to work in his job position after he has resigned from his company. It is also the grace working period which an employer has to give his employee who has received the letter of dismissal.

What is Notice period?

It is the employer or the organization that decides upon the notice period. In most cases, the employment contract is specific about such matters, and both employer and employee tend to follow it in cases of both resignation and dismissal.

The employee is entitled to his regular salary and the same contractual benefits he has been receiving during the notice period. It does not matter if the employee is on vacation, sick, or maternity leave.

If the employer does not give a stipulated notice period to the employee, he can either resolve the issue with talks or take legal action through the employment tribunal.

Statutory redundancy notice periods

The rules and regulations related to the notice period might be different for different companies. Typically the notice period varies from one week to one month

In the United States, there is no need for a notice period as most of the organizations follow at-will employment.

In the United Kingdom, the notice periods are one week notice if the employee has been employed between the period of one month and two years, one week notice for every year if the employee has been employed between a period of two to twelve years and twelve weeks notice if the time is more than twelve years.

In Poland, the statutory period applies even though it is the employer or the employee who has decided to end the contract. The statutory notice period is two weeks and one month if employed below six months and three years, respectively, and three months if employed above three years.

What is the purpose of the notice period?

The apparent reasons for the question of why is there a notice period are as follows-

1. The notice period is an essential aspect of the business as it is a step taken to safeguard the interest of both employer and employee. If there was no notice period, then the employer could have easily dismissed an employee without giving him ample time to look for another job or offering an opportunity to try talking and resolving any related issues.
2. Similarly, the employee can also leave the current job and join another company even if he is in the midst of an important project.
3. It gives the employer the time to find a replacement and the employee to look for another job so that he will not have to sit idle at home without pay.
4. The notice period helps the employee to leave the workplace on a positive note. Maintaining a healthy relationship is essential for future projects as you do not know when you might have to face anyone from this organization in your future dealings
5. If the employee works out his notice period, then the employer will not hesitate to give him a referral or letter of recommendation.
6. One of the reasons for a notice period is that it was mentioned in the employment contract and both the employer and employee have to follow it no matter what

How to determine the length of the notice period

How much notice to give when resigning is an important question that needs deliberation to arrive at a reasonable point? Consider the following to determine the length of your notice period –

1. The first thing to do is look at your employment contract and find out whether you have signed an agreement, which clearly states the length of the notice period and other related details. If yes, then the topic of discussion is over because, in most cases, the organization is going to follow it diligently, and that is why they have mentioned it in the employment contract. Even if you have signed or not signed the agreement, it can guide you through planning your next steps
2. The length of employment matters a great deal. How long have you been working in the current organization is an important question whose answers will help to determine the length of your notice period. If the employment period is less than two years, consider one week’s notice and two weeks if more than two years.
3. If the employee has already booked his vacation time, it is imperative to let the employer or management know that he will not be working after the vacation. It is up to the employer to honor the leave or not
4. If the employee is part of a team that is working closely with each other on an important task, then it becomes doubly important to think carefully and then determine the length of your notice period. This is a professional environment, and you should not leave things in a lurch to appease yourself.
5. If you are completing an important deadline, then think carefully and then determine the notice period. You cannot pass off important unfinished business to a new employee who knows nothing about it. This will be a height of unprofessionalism and reflect poorly on you.
6. Some business entities set new goals around their fiscal year. Factor this point to determine the notice period
7. If you are joining a new company, then that firm must have given you a time limit to join. Consider this factor and then determine your notice period.

How to communicate and what to write for notice period letter

If an employee is resigning from his job, he will have to submit a formal notice period letter of resignation that will also communicate his notice period. The human resources department often keeps this letter as part of the documentation. Compile a professional letter that includes-

1. It is a formal letter keep it short and concise
2. If possible state the reason for leaving the firm and the expected last day of your working day
3. Mention only positives because you do not want to leave on a sour note
4. Thank the company and offer help in the transition process of another employee in your position

Conclusion

The notice period is often referred to as a blessing in disguise as it gives both the involved parties ample opportunity to look after their interest. It is essential to be a bit flexible in dealing with the situation during the notice period so that both the employer and employee can part on healthy terms.