Before You Hand In Your Notice: Things to Check
Do not resign in the heat of the moment. Even if you have a firm new job offer, take a few days to make sure everything is in order before you resign. First, check your employment contract. You need to know your notice period, any restrictions (such as non-compete or non-solicitation clauses), and your holiday entitlement.
Confirm your new job offer is in writing and unconditional before you resign. Verbal offers can be withdrawn, and conditional offers (subject to references or DBS checks) carry risk. If your new employer requires you to start by a specific date, make sure this is compatible with your notice period.
Think about references. Who will your new employer contact? Are your referees prepared? If your relationship with your manager is poor, it is worth identifying an alternative referee within the organisation — a senior colleague or the head of another team — before you resign.
Understanding Your Notice Period
Your notice period is set out in your employment contract. Common notice periods are one month, one week per year of service (with a minimum of one week under the Employment Rights Act 1996 after one month's continuous employment), or a specific number of weeks or months. If your contract is silent on notice, the statutory minimum applies.
You must work your notice period unless your employer agrees to a shorter period (known as a mutual agreement to waive notice) or pays you in lieu of notice (PILON). Some employers have a contractual right to pay you in lieu of notice — check your contract for this clause.
If you leave without giving proper notice, you are technically in breach of contract. Your employer could theoretically sue you for losses caused by your early departure, though this is rare in practice. More practically, leaving without notice may jeopardise your reference and final pay.
Statutory vs Contractual Notice: The Detail
The Employment Rights Act 1996 sets out the statutory minimum notice you are entitled to receive from your employer — and, by extension, what the law implies you must give if your contract is silent. The statutory minimum is: one week after one month of continuous employment, increasing by one additional week for each complete year of service, up to a maximum of twelve weeks after twelve or more years.
Your employment contract will typically specify a notice period, and this is the figure that matters in practice. Contractual notice is almost always longer than the statutory minimum — particularly for professional, managerial, or senior roles. Three months is common for management positions; six months is not unusual at director level. During a probationary period, many contracts specify a shorter notice period of one week, regardless of how long you have been employed.
The key rule is simple: whichever is longer — statutory or contractual — applies. If your contract says one month but the statutory minimum based on your years of service would give you longer, you are entitled to the longer period. In practice, if your contract specifies a clear notice period, that is almost always the one you will need to give and work.
Being Asked to Leave Immediately: PILON Explained
Payment in Lieu of Notice (PILON) is when your employer pays you your salary for the notice period but asks you to stop working immediately rather than working out that period. This can happen in two ways: with a contractual PILON clause, or by mutual agreement.
If your contract contains a PILON clause, your employer can lawfully exercise it at any time, including when you resign. They pay you the equivalent of your notice period salary (and, in most cases, the value of benefits you would have received) and your employment ends on the day they invoke it. Since April 2018, all PILON payments are subject to income tax and National Insurance as normal earnings — they are no longer a tax-free benefit regardless of whether a PILON clause exists.
If your contract does not contain a PILON clause and your employer sends you home immediately without your agreement, this technically constitutes a repudiatory breach of contract on their part. However, you would still be owed your full notice pay. In practice, most departures where an employer wants you to leave immediately are resolved by mutual agreement: both parties agree to waive the notice period, with or without a payment. If you have a new role starting soon and want to leave early, your employer may be willing to release you — get any agreement to shorten your notice in writing before your final day.
Why You Should Always Resign in Writing
Always resign in writing — even if you have already told your manager verbally. A written resignation creates a clear record of the date you gave notice, giving you certainty about when your notice period begins and ends. Without this, disputes about your last working day, holiday pay, and final salary can arise.
Your resignation letter does not need to be long. A short, professional letter stating that you are resigning, your position, your notice period, and your intended last day is sufficient. You do not need to give a reason for leaving, and in most cases, it is better not to — a brief, neutral letter preserves your professionalism and your options.
Send the letter by email (and keep a copy) and, if possible, also deliver a printed copy to your manager or HR. This creates a double record and avoids any suggestion that the email was not received.
How to Structure Your Resignation Letter
Your resignation letter should include: the date, a clear statement that you are resigning from your position, the title of your position, your notice period, your last working day, and a brief closing sentence. That is all.
Optional elements — if they are genuinely true and will serve you professionally — include a sentence thanking the company for the opportunities you have had, and an offer to assist with the handover. Including these costs you nothing and is good professional practice.
Avoid: detailed reasons for leaving, criticism of colleagues, managers, or company practices, or emotional language. Your resignation letter may be placed on your personnel file and referred to long after you have left.
Sample Resignation Letter Wording
Standard resignation (serving notice): 'Dear [Manager's name], I am writing to formally resign from my position as [Job Title] at [Company Name]. In accordance with my contract, I am giving [X weeks/months] notice, making my last working day [date]. I am grateful for the opportunities I have had during my time here and will do everything I can to ensure a smooth handover. Yours sincerely, [Your name].'
Resignation during probation: 'Dear [Manager's name], I am writing to resign from my position as [Job Title]. As I am currently within my probationary period, I am giving [notice period from contract, typically one week] notice. My last working day will therefore be [date]. I wish the team well. Yours sincerely, [Your name].'
Resignation with immediate leave by mutual agreement: 'Dear [Manager's name], Following our conversation today, I am writing to confirm my resignation from the position of [Job Title], effective immediately by mutual agreement. I understand that [payment/no payment] will be made in lieu of my notice period. Please confirm the arrangements for my final pay, accrued holiday, and the return of any company property. Yours sincerely, [Your name].'
Garden Leave: What It Is and How It Works
Garden leave is when your employer requires you to stay away from the workplace during your notice period while still paying your full salary. It is often used for senior employees, those moving to competitors, or those with access to sensitive information. The name comes from the idea that you are at home tending your garden rather than working.
During garden leave, you remain an employee and your contract of employment continues in full. You are entitled to your full pay and contractual benefits. However, you are bound by all the terms of your employment — which typically means you cannot work for a competitor, set up a business in direct competition, contact clients or colleagues to solicit them away, or misuse confidential information. Your employer can recall you to work during garden leave if they choose, though in practice most do not.
One important consequence of garden leave is that the period counts towards any post-termination restrictive covenants in your contract. If your contract says you cannot work for a competitor for six months after leaving, and you spend three months on garden leave, you effectively only have three months of restriction remaining after your employment ends. This can be a significant benefit if you are moving to a competing business. If you are placed on garden leave, use the time productively — rest, prepare for your next role, and make sure you are clear on what restrictions apply to you before your start date.
Your Holiday Entitlement on Resignation
When you resign, you are entitled to any accrued but untaken holiday pay. This is calculated based on your holiday year entitlement, how much of the year has passed, and how much leave you have already taken.
Many employers will allow you to take any remaining holiday during your notice period. Some contracts allow the employer to require you to take holiday during your notice period, and some allow them to pay it out instead. Check your contract for what applies to you.
If you believe your employer is withholding holiday pay you are owed, you can make a claim to an employment tribunal. Holiday pay is a statutory right — employers cannot simply refuse to pay it.
Common Mistakes to Avoid
- ✕Resigning verbally without following up in writing — this creates ambiguity about your notice period
- ✕Resigning without checking your notice period first — you could be in breach of contract
- ✕Resigning before your new offer is confirmed in writing — verbal offers can be withdrawn
- ✕Burning bridges on the way out — the professional world is smaller than it seems
- ✕Including criticism of the company or colleagues in your resignation letter
- ✕Accepting a counteroffer without carefully considering whether the underlying reasons for leaving have changed
- ✕Forgetting to check your non-compete clause — these may restrict what jobs you can take
- ✕Not asking HR for written confirmation of your leaving date, PILON arrangement, and final pay calculation
- ✕Assuming garden leave and PILON are the same thing — they have very different implications for your post-termination restrictions
Frequently Asked Questions
Can my employer refuse to accept my resignation?
No. Your employer cannot refuse your resignation. You have the right to terminate your employment by giving the required notice. They can ask you to reconsider, but they cannot force you to stay.
What if I need to leave before my notice period is up?
You can negotiate with your employer to agree a shorter notice period. If they agree, get it in writing. If they do not agree and you leave early, you are technically in breach of contract — which may affect your final pay and references.
Am I entitled to a reference?
Employers are not legally required to provide a reference (except in regulated sectors such as financial services). However, refusing to provide one, or providing a misleading one, can expose an employer to legal risk. Most provide at least a factual reference confirming employment dates and job title.
Can I be dismissed during my notice period?
Yes, but you would still be entitled to notice pay (or pay in lieu of notice) and potentially redundancy pay if applicable. If you are dismissed during notice without cause, you may have a claim for wrongful dismissal.
Is PILON taxable?
Yes. Since April 2018, all payments in lieu of notice are treated as earnings and are subject to income tax and National Insurance contributions, regardless of whether your contract contains a PILON clause.