Notice period
Also known as: Termination notice, Notice of termination, Resignation notice
A notice period is the time between when termination is announced and when employment actually ends. It is set by law, employment contract, or both — and may be served on the job, on garden leave, or paid in lieu (PILON).
Notice periods exist to give both sides time to adjust — the employer to plan a replacement and handover, the employee to find new work and avoid an income cliff. Most jurisdictions specify statutory minimums based on tenure or contract type; employment contracts can extend these but rarely shorten them. The notice can be worked, waived, replaced with garden leave, or paid in lieu — each with different cost, knowledge-transfer, and risk profiles.
How notice typically works
Either party (employer or employee) gives written notice that employment will end on a specific future date. Between the notice and the end date — the notice period — both sides remain bound by the contract. The employee keeps showing up, the employer keeps paying. Variations: garden leave (paid, but no work performed), PILON (immediate departure, lump-sum payment for the notice period), or summary dismissal (no notice — typically only for serious misconduct).
Who serves longer notice — employer or employee?
In most legal systems, the employer's required notice is longer than the employee's, especially for long-tenured staff. The employee is typically required to give one to three months of notice; the employer's minimum scales with tenure (more years = longer notice). Senior or specialist roles often carry 3–6 month contractual notice on both sides.
Pay in lieu of notice (PILON)
When the employer wants the employee to leave immediately, the employer pays a lump sum equal to what would have been earned over the notice period (salary + benefits + sometimes bonuses). PILON is faster and avoids retention of an unmotivated leaver in sensitive systems, but it costs the employer real cash. Most contracts include an explicit PILON clause to make the option clean.
Frequently asked questions
- How long is a typical notice period?
- One month is the most common contractual default globally. Statutory minimums often scale with tenure (longer service = longer notice). Senior roles and contracts in specialist fields commonly carry 3–6 months.
- Can an employer waive the notice period?
- Yes — by paying in lieu of notice (PILON), the employer dismisses the employee immediately and pays a lump sum equal to the notice-period earnings. Most employment contracts include an explicit PILON clause to keep the option clean.
- What is Georgia's legal notice period?
- Georgian Labor Code Article 47 sets 30 calendar days as the standard notice for employer-initiated termination of indefinite-term contracts. Probationary terminations and gross-misconduct terminations are exceptions.
- What is garden leave?
- Garden leave is paid notice without working — the employer keeps the employee on payroll but bars them from the workplace, customers, or sensitive systems during the notice period. Used when knowledge transfer is risky or the departing employee is going to a competitor.
- Can an employee refuse to serve notice?
- Practically yes, but it can have consequences: forfeit of accrued bonuses, claw-back of sign-on payments, or in extreme cases a damages claim from the employer. Most cases settle quietly with a reduced notice by mutual agreement.