How do notice periods in a job work?

Notice periods apply both ways, unless your employment contract states otherwise. Many employment contracts will usually state a 1-month notice period to be provided either by the employee or employer, if the contact is to be terminated.

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If your notice period is 1 month, then as an employee, you have to give 1-month's notice if you decide to quit. You can offset your notice period with paid annual leave. If you don't give your employer notice, you have to pay salary in-lieu.

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Example: Your employment contract states that your notice period is 2 months (8 weeks). You found a new job, but they want you to start in 1 month. You have 1 week of annual leave. You can offset your notice period with your paid annual leave, so that leaves you with 7 weeks of notice period. You must therefore pay your employer 7 weeks' worth of salary in exchange for not serving your notice period.

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To get a better idea of your employment rights, read these guides on proper dismissals vs illegal dismissals:

1. Guide to unfair/illegal dismissals
2. Guide to legal dismissals