Whether you have been dismissed or have resigned, the law obliges both sides to give prior notice before employment ends. The length depends on seniority, and it carries significant financial consequences.
Disclosure: Educational information only. This is not legal advice. Rules are updated — verify with the Ministry of Labour or a lawyer. Any action you take is your own responsibility.
What a notice period is
A notice period is a warning period that must be given before the employment relationship ends, whether the employer is dismissing or the employee is resigning. Its purpose is to let both sides prepare: the employer to find a replacement, the employee to find work. During the period, work and pay generally continue as normal.
How many days (monthly salaried employee)
The length depends on seniority:
| Seniority | Notice period |
|---|---|
| First 6 months | 1 day per month worked |
| Months 7–12 | 6 days + 2.5 days for each month from the seventh |
| One year and above | A full month (30 days) |
A slightly different table applies to hourly or daily paid employees — verify with the Ministry of Labour.
Payment in lieu of notice
If the terminating party does not want the notice period actually worked, payment in lieu of notice can be made — a payment equal to the wage for the notice period, instead of working it.
If an employer dismisses you and asks you to leave immediately, they are obliged to pay you in lieu. If an employee resigns without giving notice, the employer is entitled to deduct an equivalent amount.
Rights during the notice period
During this period you continue to accrue entitlements — seniority, leave and convalescence pay — and wages are paid as normal. Someone who has been dismissed is also entitled to time off to search for work, subject to conditions.
At the end, severance pay and unemployment benefit may become due.
Common mistakes
1. Resigning without notice, which can trigger a deduction in lieu.
2. Confusing immediate dismissal with payment in lieu. Immediate dismissal requires payment in lieu.
3. Not documenting. Give notice in writing.
Summary
Notice is a mutual obligation whose length depends on seniority, and it carries real financial meaning through payment in lieu. Document it in writing, and know your rights during the period. See more in employee rights.
The information on this page is for educational purposes. Please consult a professional before making financial decisions.
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