Does paying in lieu of notice avoid the extra week?

No. With pay in lieu the contract ends that day, but s.97(2) says that where the s.86 statutory notice would have ended later, that later date is the effective date of termination for the qualifying period. After one month's service and under two years that is one week.

When does a notice period start?

On the day after the employee receives it. In Pacitti Jones v O'Brien a letter giving one week's notice reached the employee on 31 March 2003; the notice ran from 1 April and expired on 7 April.

Does the extension apply to the tribunal time limit too?

No. Section 97(2) only applies to sections 108(1), 119(1) and 227(3). The time limit for a claim runs from the effective date of termination under s.97(1).

What about notice given in late December 2026?

The six-month rule applies when the effective date of termination is on or after 1 January 2027, even if the dismissal happened before. We use the extended date to decide which rule applies, the reading under which more people are protected.

Why acting at five months may be too late: the statutory notice rule

Six months' service is measured to the effective date of termination, and for that purpose s.97(2) of the Employment Rights Act 1996 adds the statutory minimum notice. Someone hired on 1 February 2027 is protected from 31 July 2027; notice with pay in lieu has to be given by 23 July 2027, not the day before the six months are up.

Open the one-employee checker

The rule in three steps

Termination by notice: the date the notice expires. Termination without notice (for example with a payment in lieu): the date the termination takes effect. (s.97(1))
The statutory minimum notice from the employer is one week after one month's service and under two years (s.86(1)). Notice runs from the day after the employee receives it.
Where the employer ends the contract and the statutory minimum notice under s.86, if given on the day notice was given (or, with no notice, the day the contract ended), would expire later than the effective date of termination, the later date is the effective date of termination for s.108(1), s.119(1) and s.227(3).

Worked example: hired on 1 February 2027

Six months that begin with 1 February 2027 end with 31 July 2027, so an effective date of termination from that day is protected. Here is where notice given in late June and July lands.

Effective date of termination for s.108 and the result (start Mon 1 Feb 2027, protected from Sat 31 Jul 2027)
Notice received	Paid in lieu	1 week worked	4 weeks worked
Fri 25 Jun 2027	Fri 2 Jul 2027: not yet	Fri 2 Jul 2027: not yet	Fri 23 Jul 2027: not yet
Fri 2 Jul 2027	Fri 9 Jul 2027: not yet	Fri 9 Jul 2027: not yet	Fri 30 Jul 2027: not yet
Sat 3 Jul 2027	Sat 10 Jul 2027: not yet	Sat 10 Jul 2027: not yet	Sat 31 Jul 2027: protected
Fri 16 Jul 2027	Fri 23 Jul 2027: not yet	Fri 23 Jul 2027: not yet	Fri 13 Aug 2027: protected
Fri 23 Jul 2027	Fri 30 Jul 2027: not yet	Fri 30 Jul 2027: not yet	Fri 20 Aug 2027: protected
Sat 24 Jul 2027	Sat 31 Jul 2027: protected	Sat 31 Jul 2027: protected	Sat 21 Aug 2027: protected

Last day to give notice, by notice length

Start Mon 1 Feb 2027: the last day the employee can receive notice with the EDT still before Sat 31 Jul 2027
Contractual notice	Notice worked	Paid in lieu
1 week	Fri 23 Jul 2027	Fri 23 Jul 2027
2 weeks	Fri 16 Jul 2027	Fri 23 Jul 2027
4 weeks	Fri 2 Jul 2027	Fri 23 Jul 2027
8 weeks	Fri 4 Jun 2027	Fri 23 Jul 2027
12 weeks	Fri 7 May 2027	Fri 23 Jul 2027

Around 1 January 2027

The six-month rule applies where the employee is dismissed before 1 January 2027 but the effective date of termination falls on or after that date, and does not apply where the effective date of termination falls before 1 January 2027. For someone hired on 1 March 2026 (six months by September 2026, two years not until 2028), notice paid in lieu in the last days of December decides everything:

Start Sun 1 Mar 2026, notice paid in lieu
Notice received	EDT for s.108	Service needed	Result
Fri 18 Dec 2026	Fri 25 Dec 2026	2 years	Not protected
Thu 24 Dec 2026	Thu 31 Dec 2026	2 years	Not protected
Fri 25 Dec 2026	Fri 1 Jan 2027	6 months	Protected
Mon 28 Dec 2026	Mon 4 Jan 2027	6 months	Protected

Try your own dates on the one-employee checker: it shows these steps for the notice date you type.

Sources

Effective date of termination: Employment Rights Act 1996, s.97(1)(a) and (b) — https://www.legislation.gov.uk/ukpga/1996/18/section/97, read on 2026-09-30
Statutory notice extension: Employment Rights Act 1996, s.97(2) and (3) — https://www.legislation.gov.uk/ukpga/1996/18/section/97, read on 2026-09-30
Statutory minimum notice: Employment Rights Act 1996, s.86(1): after one month's continuous employment, not less than one week's notice if under two years, one week per complete year from two to twelve years, twelve weeks from twelve years — https://www.legislation.gov.uk/ukpga/1996/18/section/86, read on 2026-09-30
Counting a notice period: Court of Session, Pacitti Jones v O'Brien [2005] CSIH 56, paras. 2-4: a letter giving "one week's notice", received on 31 March 2003; the notice ran from 1 April and expired on 7 April 2003 (agreed by both parties) — https://www.scotcourts.gov.uk/media/j0ym05jv/2005csih56-pacitti-jones-vclaire-obrien.pdf, read on 2026-09-30
Which rule applies: SI 2026/559, reg. 4(1)(a) and (b); "effective date of termination" has the meaning in s.97 of the 1996 Act (reg. 4(2)) — https://www.legislation.gov.uk/uksi/2026/559/made, read on 2026-09-30

Frequently asked questions

Does paying in lieu of notice avoid the extra week?: No. With pay in lieu the contract ends that day, but s.97(2) says that where the s.86 statutory notice would have ended later, that later date is the effective date of termination for the qualifying period. After one month's service and under two years that is one week.
When does a notice period start?: On the day after the employee receives it. In Pacitti Jones v O'Brien a letter giving one week's notice reached the employee on 31 March 2003; the notice ran from 1 April and expired on 7 April.
Does the extension apply to the tribunal time limit too?: No. Section 97(2) only applies to sections 108(1), 119(1) and 227(3). The time limit for a claim runs from the effective date of termination under s.97(1).
What about notice given in late December 2026?: The six-month rule applies when the effective date of termination is on or after 1 January 2027, even if the dismissal happened before. We use the extended date to decide which rule applies, the reading under which more people are protected.

Unfair dismissal time limit: 6 months from 1 October 2026
Tribunal claims for unfair dismissal: six months beginning with the effective date of termination when it falls on or after 1 October 2026, three before. Worked dates.
Unfair dismissal after 6 months: what changes on 1 January 2027
The qualifying period falls from two years to six months for dismissals with an EDT from 1 January 2027. Who is protected that day, by start date, with sources.
Probation periods under the six-month rule
A six-month probation now ends on the day unfair dismissal protection starts. Probation end dates, last notice days and review points for 3 to 6 months.

Last updated 2026-09-30. Date calculator and templates based on the Employment Rights Act 1996 as amended by the Employment Rights Act 2025. Not legal advice. Continuity rules have exceptions; check with Acas or a solicitor before dismissing anyone. Not affiliated with Acas or the UK Government.