Resignation
In law an employee is free to terminate his/her employment at will by giving the employer the required period of notice. The required period of notice will be that stipulated in the applicable employment agreement.
Note: If an employee resigns, that is a unilateral action the employee is entitled to take and the employer's agreement is not required. Recent case law establishes that once an employee gives notice of resignation, the employee has no right to withdraw the resignation, whether or not it's given in "the heat of the moment".
Its good form to obtain written confirmation of the resignation from the employee and then acknowledge receipt of the resignation in writing.
Use the Confirmation of Resignation Letter.
Should the employee fail to give the required notice, the employer is legally entitled to make a deduction from the employee’s final pay for the un-worked period of notice. However, the exact details on entitlement to make such deductions are often dealt with in the applicable employment agreement, so refer to this in in all cases.
The employee is usually expected to work out his/her notice but there may be circumstances where this is not appropriate. Unless the employer agrees otherwise, an employee cannot use their annual leave entitlement to shorten the notice period.
Where the employer does not wish the employee to work out his/her notice period, the employee can be paid in lieu of notice. This abbreviates the notice period. Carefully check the relevant employment agreement in all cases to confirm the employer’s ability to provide pay in lieu of notice.
Alternatively, the employee may express a desire to leave early without working out his/her notice. The employer may reject such a request, but if it is agreed by the employer, then the employer is not obliged to pay for the un-worked period of notice.
Follow the Exit Checklist for actions required to be completed before the employee leaves.
Exit interviews
Where an employee resigns, it is sound practice to conduct an exit interview. This interview serves three main purposes:
- Reduces the likelihood of a subsequent claim that the employee resigned in “the heat of the moment”.
- Identifies behaviour which, deliberately or inadvertently, caused the employee to resign, and which could result in a personal grievance. Note: If an employee resigns, that is a unilateral action the employee is entitled to take and the employer's agreement is not required. Recent case law establishes that once an employee gives notice of resignation, the employee has no right to withdraw the resignation, whether or not it's given in "the heat of the moment".
- Where resignation is for good cause, this interview provides an additional opportunity to constructively review the requirements of the position and identify the skills and personal qualities required of the “ideal” replacement.
Follow the Exit Interview Template.
Use the Certificate of Service Template.
Note: Ensure you advise Payroll.