In HR, everything has a process so here’s our guide on what to do when you hear the words “I Quit”?
Cooling Off Period
Sometimes things are said in the heat of the moment and the words “I quit” are often uttered at these times. However, as an employer, you have an obligation to determine if a resignation is genuine or an angry outburst. As a result, employees have a 7-day cooling off period where they can retract a resignation without harming their employment status.
Put It In Writing
A resignation must be documented. A written resignation should be provided by the employee. Failing that, the employer can give the employee a letter confirming their resignation. In either case, the correct notice period must be specified and include the date of the employee’s last working day with your organisation.
Determine How The Employee Will Fulfil Their Notice Period
Once the resignation has been confirmed, you can choose to pay the employee their full entitlement and ask them to cease working for you immediately. If you choose this option (also known as a payment in lieu of notice), the employee is entitled to all payments they would have received had they worked during the notice period. This includes:
– Loadings
– Overtime
– Penalty rates
– Incentives and bonuses
– Allowances
You may decide to allow your employee to work in their usual role for the whole notice period or you could require them to take gardening leave. With gardening leave, the employee may be suspended and unable to work elsewhere or be required to perform lower grade duties with you.
Whatever your preference, it’s best to check with the End2End team to ensure your best interests are aligned with your compliance responsibilities.
Remind The Employee Of Their Pre- And Post-Employment Obligations
These obligations should be specified in your policies and procedures but it is important to remind the resigning employee of your expectations concerning:
– Respecting your business’ intellectual property
– Misuse or disclosure of any confidential information
– Observing any post-employment constraints
Make Arrangements For The Return Of All Items Owned By The Business
These items could include business provided:
– Laptops and devices
– Mobile phones
– Vehicles
– Tools
– And so on
Determine If There Will Be A Farewell
How you and your other employees commemorate the departure of a staff member will often set the tone for all future resignations. Of course, if the employee is departing under a cloud, you may wish to contain the celebrations. But if they were a valued employee, you need to put aside your feelings of disappointment (or even anger) and instead show them you truly appreciate all their efforts while in your employ.
On The Final Day, Be Organised
You are required to have all final payments and entitlements processed prior to the employee’s departure or in the following pay run. Failure to do so will get you in trouble for non-compliance. You’ll also want to ensure all business supplied equipment, vehicles and devices are returned. After all, the last thing your business needs is a protracted returns process for any business assets.
As an employer, you have wide-ranging compliance requirements for every aspect of your relationship with an employee – including how you handle their resignation.
The team at End2End Business Solutions know all the ins and outs of your compliance requirements and we’re always available to lend a hand. So if you have a “situation” with one of your employees, give us a call on 02 8977 4002.