RESIGNATIONS

RESIGNATIONS

Our complex workplace laws, and human behaviour means that businesses are still required to document many, if not all, aspects of people management. Far from making it easier, each government change seems to result in a need for more documentation. Neglecting your people management documentation exposes your business to unnecessary stress caused by disputes.  Unfortunately, the verbal resignation is not an unusual occurrence. When a business owner or manager receives an employee resignation, it is important to ask them to document their resignation fully. If they fail to do this, it can result in all manner of disputes about how much notice was given, or lead to disputes about other details. If the employee fails to put things in writing, it can possibly turn into a constructive dismissal if not handled properly. The way to protect yourself is to ensure you have written evidence is to acknowledge the employee’s resignation in writing.

An example of this approach came when Dawn received a verbal resignation from Sally. Initially, Dawn was happy for Sally to work out her notice period, but two days into it, Dawn began to receive complaints from clients and other employees. Dawn decided it would be better to pay Sally out her notice period and told her she was not required to attend work. Sally left immediately and all employee entitlements were paid. Weeks later, Dawn received advice that Sally had lodged an unfair dismissal claim, stating she had been terminated. Dawn had no proof of the verbal resignation and had to request that her employees make witness statements verifying Sally’s resignation.

The outcome of this was a mediated settlement with Sally, costing Dawn several weeks extra in pay and many weeks of stress.  Orderly resignations are extremely important for both Employer and Employee. Employer should take the opportunity to get this signed Resignation Form from the Employee.

All supervisors should be prepared for how to conduct themselves when receiving resignation notice, orally or in writing, so they execute Company policy appropriately. In the simplest mechanical terms, you should have a set of documents prepared for this contingency. This letter plus the Employee Release Form is generally sufficient; the health plan continuation is a matter of formality.  Resignations are complicated for employers because the employee determines the time, not the employer, and the employer has a multiple set of objectives to accomplish to make the transition effective.

The final goal should be to get the return of all Company property immediately. This is usually problematic for offsite equipment. Just do the best you can in this regard. If they have equipment at home, first get the sign off on these documents and then direct them to go home immediately and bring everything back. If you create an immediate sense of urgency, you will stand the best chance of getting everything back.

Steps to Handle Resignations:

1.      Have the employee fill out the Resignation Form and the Acceptance letter (if necessary) and make multiple copies.

2.      Get the key or keys back in the initial resignation conversation by the Employee.

3.      Change all access codes as soon as possible without insulting or inciting the resigning Employee.

4.      Get the Employee off the premises as soon as possible without insulting or inciting the resigning Employee.  There are cases where that immediate termination is better than letting the Employee linger on premises. In this case then the Resignation Acceptance Letter needs to be issued. This letter plus the Resignation Form is generally sufficient. Note that in this case, Health Benefits Premiums need to be extended for the notice period. If the employee pays a portion of the premium, and they do not wish to continue, then the benefits can be terminated immediately as well.

5.      If possible, arrange for a going away event at a convenient time and place prior to the Employee leaving (this should be part of your normal termination package).

6.      Consider this activity the most important priority of the day it occurs. If you give it immediate precedence, the event will go off better than otherwise and you will vastly reduce any lingering byproduct. In addition, your other Employees will also be put on notice as to the procedure and prepared for if they eventually resign—and will not feel singled out, and so on and so on.

If you need assistance in handling an employee’s resignation, do not hesitate to contact one of our Human Resources Professionals at HOTLINE TO HR, to assist you.