The Fundamentals of Dealing with Resignation

If one of your employees resigns, you need to establish the actual date of resignation as well as the effective termination date. Request that your employee confirms their decision to resign in writing and includes both dates in their letter of resignation. You should then acknowledge that letter and ensure that the notice period is clearly set out in your reply.

You also need to understand why your employee is resigning. Doing so will help you to improve and refine your company’s procedures and policies. It is important to be professional when handling a resignation because this enhances a company’s reputation as a fair employer.

Reading our Your Responsibilities section will help you to familiarise yourself with the essentials of dealing with a resignation.

When an employee resigns, the law states that they must work the notice outlined in their contract of employment. However, if both parties make an agreement then there can be room for some flexibility in this matter.

Should an employee’s contract not include a notice period the employee must work a full week of statutory notice. However, this is only the case if you have employed them for a month or more.

Should an employee resign and not give the required notice, they would be in breach of contract.  However, that does not mean that you can automatically sue them. You can only bring a case against them if you can prove you have suffered a financial loss.

If you do not wish the employee to attend the workplace during their notice period you can put them on garden leave, but you must pay them what they usually earn. Alternatively, you can make a payment in lieu of notice that is known as a PILON. Whatever happens, you have to ensure that an employee does not suffer a financial loss because of your not allowing them to work as normal during their full notice period. If an employee does suffer a financial loss, they could sue you for damages using the grounds of a breach of contract.

If an employee wants to withdraw their resignation, they can only do so if their employer agrees. Any resignation that is tendered when under pressure, e.g. under the threat of a significant change in employment status could be seen and treated as a dismissal by an employment tribunal.

For more help and advice about dealing with resignation contact us at Hylton Potts on 0207 381 8111 or send us an email.