Notice Period

In-Depth Definition

Notice periods vary by contract, company policy, and country. Calculating the exact last working day requires understanding if the period is counted in calendar days or working days, and whether unused leave can be offset.

How It Works in Practice

• The clock usually starts from formal written resignation acceptance rather than from a verbal conversation.
• The contract determines whether the period counts in calendar days or working days, which can shift the end date by weeks.
• Accrued leave may or may not be offsettable against the period, and this is contractual rather than universal.
• Buyout terms, where they exist, define what shortening the period costs and who decides.

A Worked Example

An employee on a 60-day notice resigns on 1 March. If the contract counts calendar days, the last working day is 30 April. If it counts working days, it lands in late May. If 12 days of accrued leave can be offset and the employer agrees, it moves earlier again. Three different answers from one clause.

The Common Mistake

Assuming the leaving date before reading the clause. People accept a start date at a new employer based on an assumed notice length, then discover the period counts working days or that leave cannot be offset without approval. Check the wording, and get any buyout or offset agreement in writing before committing to a date.