Resignations

We often get the question about an employee who says they are quitting but doesn’t give a date as to when the resignation is effective.

So what should you do as an employer?

Firstly, you should consider whether the employee resigned in what they call “the heat of the moment”. That is, there was an incident or some sort of blow-up to which the employee said they were quitting, or otherwise indicated a place you could “stick your job”.

In such a situation you should give the employee the opportunity to cool down and ask them to confirm their resignation in writing. By doing this the employer can be assured that nothing bad can flow, particularly, the employee cannot successfully claim unfair dismissal.

Secondly, once you have a resignation, and it is always best to get it in writing, you should acknowledge and accept the resignation, also in writing.  If the employee hasn’t given a timeframe you should ask the employee to do so, or, point out the notice requirement as set out under the award or the employee’s contract. That will give you the date upon which the employment relationship will end.

Depending upon the reasons for the resignation you should also consider whether it is wise to let the employee work out the notice period. If it is due to a simple change in circumstances and the employee is simply moving on, then allowing them to work out the notice period is fairly straight forward, and gives you an employee actually doing the job whilst you find a replacement.

On the other hand, if there is some form of animosity, or the reason for leaving causes you concern then you can pay out the notice period and announce to the employee that you intend to pay out the notice period and then ask them to leave the work site, premises etc. Therefore, there is no risk of any problems such as damage to equipment or stock, no opportunity to upset other workers or customers, and no opportunity for an ‘injury’ and an ongoing workers compensation claim. Paying out the notice is a form of cheap insurance.

The awards now provide that an employee has to give the same period of notice that the employer does based upon length of service. If the employee doesn’t give the proper notice then the employer is entitled to deduct one week’s wages from the final payment to the employee.

The end of an employment relationship can be tricky, whether the termination is by a resignation, a redundancy, or at the initiative of the employer. It is best to get advice as soon as possible. Our Workplace Relations Director, Andrew Cameron, can assist in dealing with the different circumstances.