Notice Periods and Termination: What Job Seekers Should Know

When you sign a job offer, you're also agreeing to how the relationship can end. Notice periods, probation, and termination clauses define how much warning you and your employer must give before ending the contract—and what you're owed when you leave (final pay, accrued leave, equity, etc.). If you don't read carefully, you might discover that you must give 3 months' notice but they can let you go with 2 weeks, or that you have no right to pay in lieu of notice, or that your equity lapses if you don't exercise within 90 days. Here's what notice and termination clauses usually mean, what to look for, and what to ask for before you sign.

Notice period

The notice period is the number of days or months you (or the employer) must give before ending the contract. It can be the same for both sides or different.

What it is

You might be required to give 1 month, 2 months, or 3 months' notice before leaving. The employer might be required to give the same—or less. For example, the contract might say you must give 3 months' notice but the employer can terminate with 1 month's notice (or 2 weeks during probation). That's asymmetric: you're locked in longer than they are. In some jurisdictions the law sets a minimum notice period for the employer (e.g. 1 month per year of service); the contract can't give you less than that. But the contract can require you to give more notice than the employer—so check both.

Why it matters

If you must give 3 months' notice but they can let you go with 1 month (or less in probation), you're less protected. You might want to leave for a new job but have to wait 3 months—or risk being in breach if you leave earlier. The new employer might not wait. So a long notice period for you (without a matching obligation for them) can limit your mobility. On the other hand, if they must give you 3 months' notice (or pay in lieu), you have more time to find a new job if they let you go. So symmetry—or at least understanding the difference—is important.

What to look for

• The exact length for you and for the employer. Is it the same? If not, what's the difference?
• Whether it changes after probation. Often notice is shorter during probation (e.g. 2 weeks each way) and longer after (e.g. 1 or 2 months each way). Know when the change happens.
• Pay in lieu of notice. Can you leave earlier and give up salary for the notice period instead of working it? Can the employer tell you to leave immediately and pay you for the notice period ("garden leave")? Pay in lieu gives you flexibility (you can start the new job sooner if the employer agrees) or security (if they want you to leave immediately, you still get paid). Get it in writing if it's not in the contract.

Probation

Probation is a trial period during which either side can often end the contract with shorter notice. It's common for new hires—but it means you have less job security at the start.

What it is

A trial period (e.g. 3 or 6 months) during which either side can often end the contract with shorter notice (e.g. 1 week or 2 weeks instead of 1 or 2 months). During probation the employer is assessing whether you're a fit; you're assessing whether the role and company are right for you. If either side decides it's not working, they can end the relationship quickly.

Why it matters

During probation you usually have less job security—they can let you go with minimal notice. After probation, notice and other terms may improve (e.g. longer notice, harder for them to terminate without cause). So the first few months are higher risk. Know the length of probation and what happens when it ends: does your notice period increase? Do you get the same benefits (e.g. health insurance, pension) from day one, or only after probation? In some places the law requires that you get certain benefits from day one; the contract shouldn't give you less.

What to look for

• Length of probation. 3 months and 6 months are common. Longer probation means longer uncertainty.
• Notice during vs after probation. What's the notice during probation (for you and for them)? What's the notice after? When exactly does probation end (e.g. 3 months from start date)?
• Benefits during probation. Do you get health insurance, pension, and other benefits from day one, or only after probation? If only after, plan for the gap (e.g. extend current insurance).

Pay and leave when you leave

When the contract ends—whether you resign or they terminate—what are you owed? Final pay, accrued leave, bonus, equity? And will they provide a reference?

Final pay

When do you get your last salary, accrued leave (holiday/vacation days you haven't used), and any bonus or commission? The contract or policy should say—e.g. "within 30 days of termination" or "on the next pay date." If you're owed a pro-rated bonus (e.g. for the part of the year you worked), is that in the contract? Get a clear answer from HR. You don't want to leave and then chase for money that's owed.

Garden leave

Sometimes the employer pays you but asks you not to work during the notice period—you're "on garden leave." That can be in your interest: you get paid, you don't have to work, and you might be free to start the new job after the notice period (subject to any non-compete). But garden leave can also mean you're not allowed to start the new job until the notice period ends—so if you have a 3-month notice and they put you on garden leave, you might have to wait 3 months before starting elsewhere. Check whether the contract mentions garden leave and what the rules are (e.g. can you work for someone else during garden leave? Usually not, if it's a competitor.).

References

Will the company provide a reference or confirmation of employment when you leave? Some companies have a policy of only confirming job title and dates of employment; others will provide a fuller reference. Good to clarify before you need it. If you're leaving on good terms, ask your manager or HR whether they're willing to provide a reference and in what form (e.g. letter, phone call, LinkedIn). If you're leaving in difficult circumstances, know that the company may still be required to give a factual reference (e.g. dates, title) but may not give a glowing one. Get whatever you can in writing so you're not surprised later.

BeforeYouSign can surface notice, probation, and termination language in your offer so you know what you're agreeing to—and what to ask for in writing—before you sign.