What notice period should startup employment contracts use?
By SuLe · Updated 22 June 2026
The statutory minimum notice from an employer is one week after a month's service, rising by a week for each complete year up to a twelve-week cap — but most startups contractually give one month either way, and three months for senior hires. During probation, notice is usually just a week or two.
Key facts
- Statutory minimum from the employer: one week after one month's service, then one week per complete year from two to twelve years, capped at twelve weeks.
- Employees must give at least one week's notice after one month's service; contracts commonly require more.
- One month either way is the common startup norm for most roles; senior hires often have three months.
- Keep probationary notice short — a week or two — so you are not locked in early.
- A payment in lieu of notice (PILON) clause lets you end employment immediately and pay rather than work the notice.
What is the legal minimum notice period?
The law sets a floor that rises with service. From the employer, statutory minimum notice is one week once an employee has one month's service, then one additional week for each complete year of service from two to twelve years, capped at twelve weeks.
So an employee with five complete years is entitled to at least five weeks' statutory notice; one with fifteen years is capped at twelve. From the employee's side, the statutory minimum is one week after a month's service, regardless of length.
These are minimums only. The contract can — and almost always should — provide more, and the greater of the statutory and contractual notice applies. Most startup roles are set well above the statutory floor.
What notice period should a startup actually use?
For most roles, one month either way is the common startup norm. It gives the business enough time to plan a handover while not trapping you with someone who wants to leave.
Senior hires — heads of function, executives, a fractional or full-time CTO — commonly have three months, reflecting the disruption their departure causes and the handover involved. Match the length to the role's seniority and how hard it would be to replace.
During probation, keep notice short — a week or two — so you can part ways quickly if the fit is wrong in the early months. Set this out expressly in the contract, alongside the longer post-probation notice.
What clauses give you flexibility on notice?
Two clauses are worth having. A payment in lieu of notice (PILON) clause lets you end employment immediately and pay the notice instead of requiring it to be worked. Without a PILON clause, paying someone off rather than letting them work their notice can itself be a breach of contract — which can undermine your restrictive covenants.
Garden leave is the second. It keeps a departing employee employed and paid but away from work, clients and systems during their notice. For senior or sensitive roles, it cools their access to confidential information and their value to a competitor. Garden leave normally needs an express clause.
Together, PILON and garden leave give you control over how a departure actually plays out — whether you want a clean immediate exit or a controlled wind-down away from clients.
| Situation | Typical notice | Notes |
|---|---|---|
| Statutory minimum (employer) | 1 week after 1 month, +1 week/year to 12 | Floor only; contract usually gives more |
| Most startup roles | 1 month either way | Balances handover and flexibility |
| Senior hires | 3 months | Reflects disruption and handover |
| Probation | 1–2 weeks | Lets you part ways quickly early on |
Worked example
Marcus runs a gaming studio and sets notice periods across his team. For most developers and designers he uses one month either way, with a one-week notice during a three-month probation.
For his newly hired head of studio, Marcus uses a three-month notice period, plus a PILON clause and a garden leave clause. When a mid-level designer with three complete years' service later resigns, Marcus checks the statutory position — that employee would be entitled to at least three weeks' statutory notice from the company on dismissal, but the contractual one month is greater, so the contract governs. The senior clauses, meanwhile, let Marcus manage a sensitive departure on garden leave.
Where founders go wrong
Only giving the statutory minimum
— it can be as little as a week, leaving you no real handover time.Using the same notice for everyone
— juniors and senior hires warrant different periods; match length to the role.Forgetting the PILON clause
— paying off notice without one can breach the contract and weaken your covenants.Setting probation notice as long as full notice
— keep it short so you can exit a bad fit quickly.
Related questions
What is the legal minimum notice period?
From the employer: one week after one month's service, then one week for each complete year worked from two to twelve years, capped at twelve weeks. Employees owe at least one week after a month's service. Contracts almost always give more than these minimums.
How much notice should a startup contract give?
One month either way is the common startup norm for most roles, with three months for senior hires. During probation, notice is usually shorter — a week or two. The right length balances protecting the business with not being locked into a departing employee. [More: How do probation periods work legally in the UK?]
What is a PILON clause?
A payment in lieu of notice (PILON) clause lets you end employment immediately and pay the notice period instead of working it. Without a PILON clause, paying someone off instead of giving notice can be a breach of contract, so most startup contracts include one.
What is garden leave?
Garden leave keeps a departing employee employed and paid during their notice but away from work, clients and systems. It is useful for senior or sensitive roles, cooling their access to information and the market, and usually needs an express clause in the contract. [More: Are non-compete clauses enforceable in the UK?]
Notice, PILON and garden leave clauses look like boilerplate until a key hire resigns — and a missing PILON clause can quietly unravel the covenants meant to protect you. A SuLe solicitor can set notice terms that fit each role and hold together on exit. Book a free consultation about your contracts and cover your departures properly.
Keep reading: What must a UK employment contract include? · How do probation periods work legally in the UK? · Are non-compete clauses enforceable in the UK? · How do I legally dismiss an employee in a UK startup? · What is a settlement agreement?
Primary sources: GOV.UK — Employment contracts · Acas — advice and codes of practice
