From time to time, your employees may decide to move on from their current job.
It can be difficult to manage, especially if they’re a valuable member of your team.
Whether you’re disappointed or not, you should treat their departure from your business with respect and professionalism.
When an employee leaves your company, you must follow the correct resignation process and laws. This is to ensure you don’t face any unfair dismissal claims or disputes in tribunal hearings.
In this guide, we’ll explain what a resignation is, how long notices must be, and how to respond to a resignation letter.
What is Resignation?
Resignation is when an employee ends their contract. They may choose to quit their job based on personal or professional factors.
Employees may give up their position in the company for several reasons, including:
- Feeling underappreciated.
- Change in management.
- Lack of compensation.
- Wanting a new challenge.
- Increased salary.
There may be other underlying problems for your employees resigning. Try to understand their reasons for wanting to leave the business.
Do Employees Need to Give Notice of Resignation?
When an employee resigns, they will be required to work until their notice is up. There are two types of notice periods, so make sure you know which one your employee has.
The two types of notice periods are:
Contractual notice period
This is the period given under a term of a contract of employment.
Statutory notice period
This is the minimum period of notice required to terminate a contract of employment.
If an employee resigns without fulfilling their notice period, you may claim that they breached their contract. In this instance, you wouldn’t have to pay the employee for the time they didn’t work.
Does an Employee Need to Submit a Resignation Letter?
While there’s not a legal requirement, handing in a resignation via a letter is a good way to go.
A written letter allows both parties to confirm the employee intends to leave. It can also verify the date of the employee’s resignation and help to establish the correct notice period.
An employee can also submit their resignation by an email, unless stated in the contract of employment.
What should the resignation letter include?
A resignation letter should be written to a manager unless stated otherwise. It requires a few crucial details for it to be valid. In the letter, employees should include:
- Reason for resigning.
- Date of their last day of work.
- Amount of notice given.
How to respond to an employee resigning from work
As an employer, it’s not essential to respond when an employee resigns. But it’s good practice to show a response, allowing you to end on good terms.
Your response to their resignation letter should include:
- That you’ve received their resignation letter.
- The amount of their final pay.
- Agreement to the departure date (or revision of it).
- Procedure on returning company equipment (like a car or laptop).
If you feel your employee has more to give and you don’t want them to leave, you could respond with a resignation counter offer.
What is Forced Resignation?
Forced resignation, or constructive dismissal, is when an employee is forced to quit their job due to something their employer has done. Because of this, an employee may feel compelled to resign.
There are a number of examples for a constructive dismissal, like:
- Consistently being paid wrongly.
- Being discriminated against during work.
- Ignoring a grievance complaint.
Get Advice on Resignations with BrightHR
As an employer, it is up to you to ensure employees don’t choose to resign from your workplace.
But if your employee does decide to leave, you should respect their decision and support them until their notice period ends.
If mistreated during their final days of work, you may be faced with an unfair dismissal claim or even disciplinary hearing.
BrightHR can help you manage your resignation process with ease. If you need any assistance on how to respond to a resignation, don’t hesitate to get in touch with one of our experts.
Book in a free demo today to see how easy it is. Give us a call on [0800 783 2806](tel:0800 783 2806)
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