Dismissal During Notice Period

Being dismissed during your notice period cuts short the employment relationship and raises questions about pay and process.

Notice Period Basics

What Is a Notice Period?

The time between:

• One party giving notice of termination
• Employment actually ending

Who Can Give Notice?

Party	Scenario
Employee	Resigning
Employer	Dismissing
Either	Mutual agreement

Types of Notice

• Statutory notice: Legal minimum based on service
• Contractual notice: Specified in contract
• Notice in lieu: Payment instead of working

Can You Be Dismissed During Notice?

The Legal Position

Generally:

• Notice period must be honored
• Employee entitled to work notice
• Or entitled to payment in lieu
• Cannot be arbitrarily cut short

Exceptions

Employer can dismiss during notice if:

1. Gross misconduct occurs during notice period
2. Contract allows payment in lieu of notice (PILON)
3. Mutual agreement to end employment early
4. Genuine redundancy situation arises

Dismissal for Misconduct During Notice

Gross Misconduct

If you commit gross misconduct while working your notice:

• Employer can summarily dismiss
• Notice period ends immediately
• Remaining notice pay not owed
• Must follow disciplinary process
• Burden of proof on employer

What Might Constitute Gross Misconduct?

During notice period:

• Theft or fraud
• Serious breach of confidence
• Deliberate sabotage
• Violence or harassment
• Gross insubordination
• Serious policy breaches

Process Requirements

Even during notice, employer must:

1. Investigate allegations
2. Invite to disciplinary hearing
3. Allow you to respond
4. Consider evidence fairly
5. Provide written outcome
6. Offer right of appeal

Not Gross Misconduct

Actions typically not justifying summary dismissal during notice:

• Reduced effort or productivity
• Looking for other jobs
• Minor lateness
• Attitude issues
• Minor breaches

When You've Resigned

Working Your Notice

After you resign:

• You must work your notice (or as contract requires)
• Employer must allow you to do so
• Must continue to pay you
• Cannot dismiss without cause

If Employer Dismisses You

If dismissed during your resignation notice period:

Scenario	Your Rights
No valid reason	Full notice pay due
Gross misconduct	Notice pay stops
Mutual agreement	As agreed
PILON clause	As per contract

Impact on Reference

Dismissal during notice period may affect:

• Reference content
• Future job prospects
• Explanation to new employer
• Professional reputation

When Employer Has Given Notice

Working Employer's Notice

When employer gives you notice:

• You must work notice period
• They must allow you to work
• Cannot dismiss without cause
• Must pay through notice period

If They Dismiss You Mid-Notice

If employer dismisses you halfway through their notice period:

• Check if gross misconduct committed
• If not, remaining notice pay due
• Potential wrongful dismissal claim
• Employment ends earlier than expected

Payment in Lieu of Notice (PILON)

Contractual PILON Clauses

If contract contains PILON clause:

• Employer can terminate immediately
• Must pay sum in lieu of notice
• No breach of contract
• Pre-agreed mechanism
• Usually includes salary only, not benefits

Without PILON Clause

If no PILON clause in contract:

• Employer cannot unilaterally end notice early
• Doing so is breach of contract
• You can claim damages
• Entitled to full notice benefits

What PILON Usually Covers

Typical PILON payment includes:

• Basic salary for notice period
• May or may not include benefits
• Check contract wording carefully
• Tax treatment may differ

Redundancy During Notice Period

Can It Happen?

Yes, genuine redundancy can arise during notice:

Your Notice	Employer's Notice	Result
You resigned	Redundancy arises	May claim redundancy pay if eligible
Employer gave notice	Redundancy confirmed	Redundancy pay due
Either	Genuine redundancy	Process must be fair

Redundancy Pay Entitlement

If made redundant during notice:

• Must have 2 years' service
• Redundancy situation must be genuine
• Entitled to statutory (or contractual) redundancy pay
• May lose some notice pay
• Should receive statutory notice minimum

Timing Matters

When redundancy notice given matters:

• Before your resignation: May be entitled to redundancy pay
• After your resignation: Usually not entitled
• Counter-notice within notice period: Check rights

Wrongful Dismissal During Notice

What It Means

Wrongful dismissal during notice occurs when:

• Employer terminates without valid cause
• Notice period not honored
• No PILON clause exists
• No agreement reached

Your Remedies

Can claim:

• Damages for breach of contract
• Usually net loss of notice pay
• Loss of contractual benefits
• Potentially bonus if contractual

Time Limits

• Tribunal: Within 3 months less 1 day
• County court: Within 6 years (usually tribunal route preferred)

Shortening Notice by Agreement

Mutual Consent

You and employer can agree to:

• End employment earlier than notice period
• Negotiate exit terms
• Agree payment arrangements
• Waive remaining notice

Get It in Writing

Always document:

• Agreed leaving date
• Payment terms
• Benefits position
• Reference agreement
• Waiver of claims

Settlement Agreements

Formal option:

• Legally binding contract
• Usually involves payment
• Waives tribunal claims
• Must have independent legal advice
• Protects both parties

Your Obligations During Notice

Must Continue to Work

While serving notice:

• Maintain normal performance standards
• Fulfill contractual duties
• Maintain confidentiality
• Not undermine business
• Honor loyalty obligations

What You Can Do

Permissible during notice:

• Look for new jobs
• Attend interviews (with permission)
• Prepare for transition
• Hand over responsibilities
• Take accrued holiday

What May Be Gross Misconduct

Avoid:

• Taking confidential information
• Soliciting clients (if prohibited)
• Poaching colleagues
• Deliberate poor performance
• Sabotage or damage

Garden Leave During Notice

What Is Garden Leave?

Employer may:

• Require you to stay away from work
• Continue paying you
• Keep employment active
• Serve out restrictive covenants

Dismissal During Garden Leave

See separate guidance - special considerations apply when dismissed while on garden leave during notice period.

Practical Scenarios

Scenario 1: You Resign, They Dismiss You

You give 4 weeks' notice, after 2 weeks employer dismisses you:

• Check if gross misconduct
• If not, entitled to remaining 2 weeks' pay
• Can claim wrongful dismissal
• Employment ends immediately

Scenario 2: They Give Notice, Make You Redundant

Employer gives 8 weeks' notice, after 4 weeks announces redundancy:

• Redundancy pay due (if eligible)
• Should receive statutory notice minimum
• Fair process must be followed
• Consultation rights apply

Scenario 3: Mutual Early Termination

Either party gave notice, both agree to end earlier:

• Document agreement in writing
• Agree payment terms
• Confirm reference approach
• No claims if properly documented

Impact on Benefits

During Notice Period

Entitled to:

• Salary
• Benefits (car, insurance, etc.)
• Pension contributions
• Holiday accrual
• Bonus (if contractual)

If Dismissed Mid-Notice

May lose:

• Remaining notice period benefits
• Pro-rata bonus
• Long-term benefits
• Share options (check rules)

Notice Period and Unfair Dismissal

Separate Issues

Remember:

• Wrongful dismissal: Breach of contract (notice not given)
• Unfair dismissal: Dismissal unfair (substantive or procedural)

Can Claim Both

If dismissed during notice:

• Wrongful dismissal claim for notice period
• Unfair dismissal claim if 2 years' service
• Separate compensation calculations
• Must go through ACAS first

Tips for Employees

If You're Serving Notice

• Maintain professionalism
• Fulfill your obligations
• Document everything
• Don't breach contract
• Keep evidence of work

If Dismissed During Notice

1. Request written reasons
2. Check for gross misconduct allegations
3. Calculate notice pay owed
4. Review contract for PILON clause
5. Keep all communications
6. Seek legal advice
7. Check time limits for claims

Negotiating Early Exit

If you want to leave earlier:

• Discuss with employer
• Propose terms
• Get agreement in writing
• Confirm payment and reference
• Consider settlement agreement

Employer Best Practice

Respecting Notice Periods

Employers should:

• Honor notice periods unless valid reason
• Follow process if misconduct arises
• Document decisions clearly
• Pay correct amounts
• Provide written confirmation

If Dismissing During Notice

Must:

1. Have valid reason (usually gross misconduct)
2. Follow disciplinary procedure
3. Consider evidence fairly
4. Communicate in writing
5. Offer appeal
6. Calculate payments correctly

Summary

Key Points

• Notice periods should normally be honored
• Dismissal during notice requires valid reason
• Gross misconduct can justify summary dismissal
• Otherwise, full notice pay remains due
• Mutual agreement can shorten notice
• Get everything in writing

Your Rights

During notice period:

• Right to work your notice (usually)
• Right to notice pay
• Protection from arbitrary dismissal
• Fair process if accused of misconduct
• Ability to claim if wrongfully dismissed

Remember

Being dismissed during your notice period is serious and should only happen for valid reasons. If it happens to you, understand whether it was lawful, calculate what you're owed, and seek advice if you believe your rights have been breached.