Notice Period

A notice period is the set amount of time between when an employee or employer formally announces the intention to end a contract and the employee’s final working day. It is a key part of most employment agreements and ensures that neither party is caught off guard by a sudden departure or termination.

This period allows for a smoother transition by giving time to:

• Wrap up responsibilities
• Transfer knowledge or train a replacement
• Complete the necessary documentation
• Initiate handover procedures
• Organise final payments and benefits

Notice periods are usually defined in employment contracts but may also be governed by local labour laws. For companies managing teams internationally through solutions like Employer of Record (EOR), it’s important to comply with local rules and timelines.

A structured notice period provides clarity and protection for both employers and employees. It allows each party to plan the next steps, whether it’s finding a new hire, onboarding a replacement, or moving on to a new job.

For employers

• Operational continuity: The notice period gives employers time to delegate tasks, distribute workloads, or hire and train a replacement.
• Protects business interests: Employers can ensure that critical knowledge isn’t lost and that clients or projects don’t suffer due to an abrupt exit.
• Minimises disruption: Especially for small or remote teams, advance notice helps maintain productivity during transition periods.
• Facilitates compliance: Using platforms like Native Teams, employers can manage employee exits in line with country-specific laws and contractual obligations.

For employees

• Professional closure: Employees get a chance to properly close projects, inform colleagues, and leave on good terms.
• Financial security: Remaining employed during the notice period ensures continuous income until the final day, unless otherwise agreed.
• Smooth transition: Employees can prepare for a new role or relocation without abruptly cutting ties with their current job.

Legal compliance

Many countries require a minimum notice period for resignation or dismissal. For example, in Germany or France, notice periods can legally extend to several months for certain roles. It’s very important to understand and follow these international employment laws, as failing to adhere to these rules can lead to legal action or financial penalties. 

Maintaining a positive workplace culture

Respecting notice periods promotes transparency, accountability, and mutual respect, reducing negative feelings and preserving the employer brand.

Employee notice period

This is the notice given by an employee when resigning. The length of time is typically specified in the employment contract, but can also be influenced by the company policy, seniority of the role, and local labour regulations.

Employees may also request to shorten their notice period, but this must be mutually agreed upon by the employer.

Employer notice period

Employers must also provide notice before terminating a contract. Depending on the circumstances, this period can vary:

• During probation: Usually 1 week or less
• Post-probation: Typically 1 month or more
• Seniority and tenure: The longer the employee has served, the longer the required notice

In cases of dismissal due to misconduct, employers may initiate immediate termination without a notice period, subject to legal justification.

Mutual agreement

Both parties can mutually decide to shorten, extend, or waive the notice period. This usually happens when both employer and employee see value in an earlier or later exit. Such decisions should be documented in writing to avoid future disputes.

Payment in lieu of notice (PILON)

Instead of working through the notice period, the employer may offer compensation equal to the employee’s salary for that time. This is common in high-security or sensitive roles where continued access may pose a risk.

Gardening leave

In some industries, particularly finance or tech, employees may be asked not to work during their notice period but will continue to receive full pay. This prevents them from accessing confidential information while still being contractually bound.

To learn more in-depth about the notice period of different countries, read our country-specific hiring guides.

1. Notification

The process starts with one party giving formal notice, either in writing or via an internal HR platform. In many countries, verbal notice is not legally valid unless followed by written confirmation.

2. Acknowledgement

The receiving party (employer or employee) formally acknowledges the notice and begins planning the next steps. This includes confirming the last working day, final deliverables, and any benefits due.

3. Transition period

This is the bulk of the notice period, during which:

• The employee may continue working on key tasks
• Knowledge transfer or handovers are arranged
• Access to tools, data, and accounts is gradually withdrawn
• Final payments, including any unused leave, are calculated

Remote teams can benefit from centralised platforms like Native Teams to manage this process across borders.

4. Offboarding

On the final day, offboarding tasks take place. These may include returning company equipment, revoking access credentials, conducting an exit interview, and issuing final payslips and documentation

With Native Teams’ Global Payroll solution, businesses can handle final payroll and tax deductions of their global team with full compliance.

5. Final day

This marks the official end of employment. All legal and financial obligations should be fulfilled by both parties, and the individual is free to begin their next job unless bound by a non-compete clause.

The length of a notice period depends on the employment contract, the country-specific labour laws, company policies, and lastly, the job level and tenure. Here are a few general benchmarks:

• Entry-level employees: 1–2 weeks
• Mid-level professionals: 1 month
• Senior or executive roles: 2–3 months

Some countries, such as the UK or the Netherlands, set legal minimums but allow employers to extend them through contracts.

In remote or distributed teams, handling notice periods becomes more complex due to time zone differences, varied employment laws, digital-only communication, and different cultural expectations. It’s important to have a clear and documented offboarding process to avoid misunderstandings or legal risks.

By using Native Teams’ global platform, companies can:

• Manage all the paperwork and final payments for employee offboarding 
• Automatically apply country-specific notice rules
• Handle everything digitally in one dashboard

• A notice period ensures structured exits and reduces disruption for both employers and employees.
• It helps with handovers, final payments, and legal compliance during offboarding.
• Notice periods can be initiated by the employer, the employee, or by mutual agreement.
• Alternatives like payment in lieu of notice (PILON) or gardening leave may apply in certain cases.
• Duration varies by country, contract terms, job level, and tenure, usually ranging from 1 week to 3+ months.