No matter how brilliant an employer may be, employee resignations are inevitable.

The reasons for an employee leaving a business can vary significantly. The employee may be moving away, taking a break from employment, going on an extended holiday, growing their family, or accepting another opportunity. Regardless of the reason, an employer is faced with many questions including:

  • How to announce the employee’s upcoming departure?
  • Who internally and externally needs to be aware that the employee is leaving the business?
  • How do we ensure a sufficient handover is conducted?
  • How do we keep the employee engaged through to their last day?
  • How best can we coordinate the return of equipment?

Before contemplating answering any of the questions above, it is important to firstly get the employee’s resignation in writing with their final date of employment clearly stated. This is important for a number of reasons including confirming the employee’s last day, correct processing in payroll and is an important piece of evidence in the event a dismissal claim is lodged. It is also important when an employee resigns to make clear that the Employer has not sought their resignation. Under certain circumstances it may be prudent to formally invite the employee to reconsider, particularly where there could be a risk of a constructive dismissal claim.

What to do once the resignation has been received in writing?

One of the most important things to consider once the resignation has been put in writing, is whether or not the departing employee will remain a positive contributor to the business whilst working out their notice period. In some instances, the departing employee can make the transition more successful by:

  • Wrapping up any loose ends;
  • Training other employees to cover their responsibilities until a suitable replacement can be found;
  • Training the new employee; or
  • Continue on doing their job as per usual.

If, however, there is a chance that the employee working out their notice period will cause significant disruption to the workflow of the business, it may be best to finish the employee up prior to their last day noted on their resignation and pay out their notice period in lieu. If it has been decided to finish the employee prior to their noted final date, a conversation must be had with the employee explaining what is going to happen. It is also important to put this decision in writing by providing the employee with a resignation acceptance letter.

How best to manage the exit process?

There are some key steps we suggest an employer undertakes to ensure the smooth exit of an employee out of the business.  These include processing the final pay, return of keys, equipment and property, cutting off IT access, communicating to the team and conducting an exit interview. Timing of these activities is also critical particularly to minimise the risk of losing business information and intellectual property. The introduction and use of an exit checklist is a great tool to not only ensure all steps are completed but consistency in the process.

Do all departing employees get a resignation acceptance letter or just those not working out their notice?

It is important for all employees who have tendered their resignation to receive a resignation acceptance letter. This letter formalises the resignation process and can also be used as evidence in the event a dismissal claim is lodged. The letter should include items such as:

  • Final date of employment
  • Final working day (if different from the above)
  • Final pay date
  • What will be included in the final pay
  • Where and how to return equipment and resources

How should I notify staff about an employee’s departure?

There is nothing worse than finding out through a customer or someone in the lunch room that a staff member is leaving the business. Notifying the business of an employee’s departure prior to the news getting out is important to maintain a level of trust and morale.

Methods to communicate the news to the business may include:

  • Sending out an email announcement
  • Calling individuals
  • Video calling individuals
  • Putting a notice on social media and the intranet

When considering the best method to use in notifying the business of an upcoming departure is crucial when considering how the information will be received. For example, it may be best to directly phone the manager, immediate colleagues, clients, and the business owner. After this has occurred, a bulk email may be sent out to the rest of the business, other clients, and other stakeholders. This will ensure that no one is blind-sided and the information is still delivered.

Check out our previous blogs, Ending Employment and Why is it Important to Have an Employment Contract? for some more information about employee resignation.

If you need assistance in managing employee resignations, or want support in terminations, get in touch with our team via the chat box here or give us a call on 08 6150 0043.

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