A shift towards longer notice periods

Are employment contracts changing?

There is a noticeable shift towards the 3 month notice period throughout the automotive industry and from further research this seems to be the case across many other industries.  This longer time frame was often in place at the senior end of a market or where certain specialist skills were required but in recent years it’s become more commonplace at all levels across many roles.

Longer=better?

Businesses need to protect themselves and ensure smooth transfer of knowledge in the event of key people leaving.  3 month notice periods (or more in some cases) give them the time needed to safeguard the business from loss in productivity or output.  For an employee whose position is terminated a longer notice period offers two main benefits being a salary paid and time to secure a new role.

The pitfalls

It can be a difficult time for someone who has handed in their notice and made the mental switch to a new role.  On the flipside, as an employer you have someone on the team that you know has decided to move on to pastures new.  Businesses looking to hire can be put off by long notice periods although in some cases there can be negotiation and a reduced term agreed to.

Conclusion

There are obvious pros and cons to short and long notice periods but each situation is different.  As more and more people are contracted to extended notice periods is it beneficial to have these longer terms in place?  Is there an optimum time frame?  Probably not but for now the trend seems to be the longer the better.

 

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