Employment Rights Act 1996, section 86

Rights of employer and employee to minimum notice

Part IX Termination of employment

(1)The notice required to be given by an employer to terminate the contract of employment of a person who has been continuously employed for one month or more—

(a)is not less than one week’s notice if his period of continuous employment is less than two years,

(b)is not less than one week’s notice for each year of continuous employment if his period of continuous employment is two years or more but less than twelve years, and

(c)is not less than twelve weeks’ notice if his period of continuous employment is twelve years or more.

(2)The notice required to be given by an employee who has been continuously employed for one month or more to terminate his contract of employment is not less than one week.

(3)Any provision for shorter notice in any contract of employment with a person who has been continuously employed for one month or more has effect subject to subsections (1) and (2); but this section does not prevent either party from waiving his right to notice on any occasion or from accepting a payment in lieu of notice.

(4)Any contract of employment of a person who has been continuously employed for three months or more which is a contract for a term certain of one month or less shall have effect as if it were for an indefinite period; and, accordingly, subsections (1) and (2) apply to the contract.

F594 (5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6)This section does not affect any right of either party to a contract of employment to treat the contract as terminable without notice by reason of the conduct of the other party.

Definitions used in section 86 6

employer

(4) In this Act “employer”, in relation to an employee or a worker, means the person by whom the employee or worker is (or, where the employment has ceased, was) employed.

Defined in s.230(4) · see it in the full Act

(6) This section has effect subject to sections 43K , 47B(3) and 49B(10) ; and for the purposes of Part XIII so far as relating to Part IVA or section 47B, “worker”, “worker’s contract” and, in relation to a worker, “employer”, “employment” and “employed” have the extended meaning given by section 43K.

Defined in s.230(6) · see it in the full Act
contract of employment

(2) In this Act “contract of employment” means a contract of service or apprenticeship, whether express or implied, and (if it is express) whether oral or in writing.

Defined in s.230(2) · see it in the full Act
employed

and “employed” shall be construed accordingly.

Defined in s.230(5) · see it in the full Act

(6) This section has effect subject to sections 43K , 47B(3) and 49B(10) ; and for the purposes of Part XIII so far as relating to Part IVA or section 47B, “worker”, “worker’s contract” and, in relation to a worker, “employer”, “employment” and “employed” have the extended meaning given by section 43K.

Defined in s.230(6) · see it in the full Act
week

“week”—

(a)

in Chapter I of this Part means a week ending with Saturday, and

(b)

otherwise, except in sections 27C, 75F, 75H, 80A, 80B , 80EA , 80EF , 80J and 86 and paragraph 11 of Schedule A1 , means, in relation to an employee whose remuneration is calculated weekly by a week ending with a day other than Saturday, a week ending with that other day and, in relation to any other employee, a week ending with Saturday.

Defined in s.235(1) · see it in the full Act
employment

(5) In this Act “employment”—

(a)in relation to an employee, means (except for the purposes of section 171) employment under a contract of employment, and

(b)in relation to a worker, means employment under his contract;

Defined in s.230(5) · see it in the full Act

(6) This section has effect subject to sections 43K , 47B(3) and 49B(10) ; and for the purposes of Part XIII so far as relating to Part IVA or section 47B, “worker”, “worker’s contract” and, in relation to a worker, “employer”, “employment” and “employed” have the extended meaning given by section 43K.

Defined in s.230(6) · see it in the full Act
employee

(1) In this Act “employee” means an individual who has entered into or works under (or, where the employment has ceased, worked under) a contract of employment.

Defined in s.230(1) · see it in the full Act

Cases considering section 86 20

Newcastle Upon Tyne NHS Foundation Trust v Haywood

[2017] EWCA Civ 153 · 17 March 2017Limits

The statutory minimum-notice provisions were distinguished from the contractual notice issue. The appeal concerned contractual rights alone, so those provisions did not determine when notice took effect (see paras [18]-[20]; [46]-[49]).

Harper v Virgin Net Ltd

[2004] EWCA Civ 271 · 10 March 2004

The Act’s statutory notice provisions supply the notice period used in determining the effective date under section 97(2). (see para [15]) The statutory notice period was seven days in the appellant’s case and was the period used to calculate the effective date after summary dismissal. (see paras [8], [22], [27])

Dr Graeme Madden v Waracle Limited & Anor

[2025] EAT 173 · 20 November 2025

Section 86(3) may prevent an umbrella-company contractual arrangement from operating de facto to remove statutory minimum notice. The issue was not determined because it had not been pleaded or argued below, but may be raised by amendment against Paystream. (see paras [16]; [37]-[38])

3 more judgments, and what each says about section 86, are in the case-law panel in the full Act.

Amendments and notes

2 notes from legislation.gov.uk

Amendments

  1. F594S. 86(5) omitted (1.10.2002) by virtue of The Fixed-term Employees (Prevention of Less Favourable Treatment) Regulations 2002 (S.I. 2002/2034), reg. 11, Sch. 2 Pt. 1 para. 3(4) (with regs. 13-20 and subject to transitional provisions in Sch. 2 Pt. 2)

Modifications

  1. C89S. 86(2) excluded (17.11.2021) by 1972 c. 70, s. 80B(6) (with s. 80B(7)) (as inserted by Local Government and Elections (Wales) Act 2021 (asc 1), ss. 20, 175(7); S.I. 2021/1249, art. 2(a) (with art. 4))