Why notice periods matter to contractors
When taking on a contract through an agency or directly with a client, you’ll normally check the rate, hours, and project details first. But there’s another important point that can be overlooked — the notice period.
Your notice period sets out how much time you or the other party must give before an assignment or employment ends. If you misunderstand it, you could end up leaving too early, staying longer than intended, or breaching contract terms.
Assignment notice periods – the agency or client agreement
The notice period for your assignment is written into the contract you agree with the agency or client. This is purely a contractual matter and can vary widely:
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Some roles allow immediate termination.
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Others require a week, two weeks, or more.
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Shorter contracts may have shorter notice requirements.
One common misconception is that working for 12 weeks means you’re entitled to or required to give one week’s notice. In reality, that 12-week point is part of the Agency Workers Regulations (AWR) and deals with pay parity — not notice periods.
The only way to know your exact assignment notice is to read your contract before you start and confirm it in writing with your agency.
Umbrella employment notice – a separate obligation
If you’re paid through an umbrella company, you have two separate contracts in play:
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The assignment contract with your agency or client.
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The employment contract with your umbrella company.
When an assignment ends, your employment with the umbrella does not automatically end. You remain an employee until either you or the umbrella company follow the correct notice process in your employment contract.
By law, once you’ve been employed for at least one month, you must give (and receive) at least one week’s notice. This increases by one week for every complete year of service, up to a maximum of twelve weeks. Your umbrella may require longer notice than the legal minimum.
Keeping the two contracts separate
To avoid confusion, remember:
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Ending an assignment only ends your work for that specific client.
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Ending umbrella employment is a separate process that must be done in line with your employment contract.
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If you want to leave both, you need to give notice to both the agency/client and the umbrella company.
Practical steps for contractors
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Check both contracts before starting work. Highlight the notice terms for your assignment and your umbrella employment.
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Don’t rely on assumptions — especially around “12-week rules.” These don’t set notice periods.
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Give notice in writing (email is fine) and keep a record of when it was sent.
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Plan your timings so your assignment and umbrella notice align with your next move.
Key takeaway
Your contractor notice period for the assignment is not the same as your umbrella employment notice. Ending an assignment does not automatically end your umbrella employment. Check both contracts, give the right notice to each party, and keep everything in writing to avoid disputes or payment issues.
For more guidance on choosing a compliant umbrella, see our Top 10 Umbrella Companies (2025) list.
