What is Notice period: Meaning, Types, Tasks & FAQs

A notice period refers to the duration of time that an employee or an employer is required to provide advance notice before terminating an employment contract or resigning from a job. It is a standard practice in many employment agreements and is intended to allow both parties time to prepare for the transition.

Types of Notice Period

1. Standard Notice Period:

This is the norm in the industry with a typical notice period being agreed upon in the employment contract between the employer and the employee. Usually, it is a package of time, for example, one month, two months, or three months, based on the contract conditions or the company rules.

2. Probationary Notice Period:

The employee might have a shorter notice period when they are still in the probation period, which is usually the first few months after a job is taken. In this case, the employer and the employee might have a shorter notice period. This feature enables either party to cancel the contract with short notice if either of them is dissatisfied with the service during the probationary period.

3. Statutory Notice Period:

Some areas have legal notice periods where the laws or regulations demand it. Such notices are so designed to make employers give a minimal number of notice days before terminating the employment of the employees. Likewise, there can be statutory notice periods a worker needs to give before actually resigning from his/her position.

4. Special Notice Period:

In particular cases, including redundancy or mass redundancies, employers must follow the regulations concerning the minimum notice period or the collective agreements with labour unions. These extra notice periods are meant to help employees have the time to be ready for a job loss and search for other employment options.

5. Payment in Lieu of Notice (PILON):

Rather than doing work during the notice period, employers can pay the employees the payment in lieu of the notice. This implies that workers are paid for the entire time of notice period, but they are not compelled to work for that duration. PILON provisions can be part of the employment contract or they may be agreed by the parties in a separate document.

What are the tasks an employee works on during the notice period?

1. Knowledge Transfer:

The staff members will be obliged to document and pass on the knowledge, skills, and responsibilities to their fellow workers or successors who will take over their positions. This guarantees that everything runs so smoothly and that work processes are carried out by the same people.

2. Handover of Projects:

Employees can be required to pass on any ongoing assignments and projects to their coworkers or team members. This contains information such as project updates, provision of relevant documents and information, and ensuring that everything is in place for the continuity of the project.

3. Training and Coaching:

The staff will need to be trained so that they will be able to provide training or coaching to their colleagues or replacements on the specific tasks, processes, or systems they are good at. This is a process that is used to make sure that the incoming employees are sufficiently ready to come and take up their responsibilities.

4. Finalizing Work:

Employees should be sure to have everything they are responsible for finished or transferred to someone else who can complete it before they leave. This could be achieved in several ways, including putting first things first, meeting deadlines, and drawing the lines.

5. Exit Procedures:

The employee needs to complete the exit procedures including returning the company’s property, clearing outstanding expenses or reimbursements, doing exit interviews and submitting all the necessary paperwork connected with their departure.

6. Maintaining Professionalism:

Employees are required to be highly professional and follow the Company policies and standards during the entire notice period. This order of activities involves working regular hours, participating in meetings, and engaging with colleagues in the usual way.

7. Preparing for Transition:

Employees should ensure that they take the necessary steps to prepare for the day when they will be leaving the organization. This could, for example, involve resume updates, networking with contacts and making arrangements for their next move, whether it be the commencement of a new job or some time off.

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