For employers, long notice periods can feel like a double-edged sword. On paper, they offer protection and continuity but, in practice, they can create challenges, especially if an employee disengages well before their final day.
There is no right or wrong answer to whether contracts should favour long or short notice periods. The right approach depends on the following:
• the role.
• the level of seniority.
• how notice periods are managed in the workplace.
The advantage of long notice periods
Long notice periods can provide reassurance and structure for employers:
• they allow time to recruit and brief successors.
• they support knowledge transfer and handovers, particularly in specialist or senior roles.
• they can promote workforce stability, encouraging employees to consider their next steps carefully.
In theory, longer notice periods also give HR teams flexibility to redistribute workloads, appoint interim cover, or manage client communications during transitions.
When long notice periods can cause challenges
The risk arises when an employee becomes disengaged:
• productivity may drop.
• team morale and client relationships can be affected.
• in junior roles, the commercial benefit may be limited because replacements can start quickly.
For candidates, long notice periods can also restrict career movement. In a competitive market, some employers aren’t willing to wait two to three months for junior or operational hires, which can be frustrating for strong candidates.
The benefits of shortening notice periods
Notice periods can sometimes be shortened if both parties agree, which is helpful when:
• the employee is disengaged or has accepted another role.
• a replacement has been found sooner than expected.
• business needs change and flexibility is required.
It is important that any adjustment is mutual and clearly documented. Employers cannot unilaterally reduce notice, but flexible approaches are increasingly common in practice – the employee must be mindful that if they request a shorter notice period the employer is not obliged to pay out the balance of it.
The risks of shortening notice periods
Shorter notice periods allow employees to exit cleanly and organisations to reset quickly. Teams avoid prolonged uncertainty and new hires can start sooner. However, shorter notice periods carry risks:
• knowledge gaps may emerge if replacements aren’t in place.
• workloads may increase suddenly.
Effective workforce planning and succession strategies are critical to manage these risks.
How to determine the appropriate notice period
The most effective approach is to look at the role, as follows:
• Senior, specialist, or client-facing roles often benefit from longer notice periods – paired with proactive exit management and clear handover expectations.
• Junior and operational roles often work better with shorter notice periods to maintain agility and reduce unproductive downtime.
Ultimately, notice periods should protect the business without trapping either party in an unproductive situation.
In summary:
• align notice periods with role seniority and replacement complexity.
• build in flexibility, such as garden leave clauses.
• remember notice periods can be shortened by mutual agreement.
• focus on engagement during notice, not just contractual protection.
• regularly review whether your notice periods still reflect the market reality.
Be mindful of the fact that a three month notice period is a long time to remain engaged for anyone who has found a new job – a month or two months’ notice is advisable for all but the most senior and specialist staff.
For advice do email nicola.goodridge@goodhr.co.uk or call +44 7917 878384
