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  • Breadcrumb

    1. Home
    2. Employment, training and careers
    3. Redundancy and leaving your job

    Notice pay

    If you’re leaving your job, you will normally have the right to your normal pay and benefits (company car for example), as set out in your contract of employment, during your notice period.

    Minimum pay

    Even if your employment contract doesn’t set out how many hours you work you still have the right to be paid a minimum hourly rate of pay during your notice period that you are:

    • off sick
    • on holiday
    • temporarily laid off
    • on maternity/paternity/adoption leave
    • ready and willing to do a reasonable amount of work to earn a week’s pay, but your employer doesn’t give you any work

    Your pay during these periods is worked out by dividing your average week’s pay by the number of hours you normally work.

    • Calculating your pay

    Exceptions to the right to minimum pay

    You will not be entitled to a minimum pay rate during your notice period if:

    • you are working a notice period that is longer than the minimum notice period by a week or longer
    • you take part in strike action after giving notice

    You will not be entitled to the minimum pay rate for any time off that you request during your notice period. However, this could be protected separately if, for example, you need time off:

    • to look for work or arrange training if you are facing redundancy
    • for union duties
    • for antenatal care

    When notice pay is taxable

    If you work your notice, you'll be taxed at the usual rate on the money you earn in your notice period.

    If your receive payment in lieu of notice (PILON), this is only taxable if it's been provided for in your contract or is customary. Or, it’s not taxable unless the PILON together with redundancy and other compensation adds up to more than £30,000, in which case anything over £30,000 is taxable at the usual rate.

    Insolvent employers

    Insolvency happens when an employer has no money to pay the people they owe in full and they have to make special arrangements to try to meet these debts. If your employer wants to end your employment, but can't pay you because they're insolvent, you may be able to claim the money you’re owed from the Insolvency Practitioner.

    • Your rights if your employer is insolvent

    More useful links

    • Labour Relations Agency
    • Jobs and Benefits offices
    • Advice NI
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    Redundancy and leaving your job

    • Dismissal
    • Giving or getting notice from your job
    • Insolvency payment claims
    • Leaving work to care for someone
    • Notice pay
    • Redundancy
    • Resigning from a job
    • Temporary lay-offs

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