Separation – Resignation

Purpose

The purpose of this policy is to ensure that all requirements are met, all relevant documents completed and entitlements paid.

Employees of [enter-your-company-name-here] are required to comply with certain requirements when resigning their employment.  These requirements are established through legislation, and through company policies and procedures.

Policy

[enter-your-company-name-here] will develop an environment that encourages retention of employees and seeks to minimise employee turnover.

In all cases of resignation, [enter-your-company-name-here] will ensure that all entitlements are met and employees are treated fairly and equitably during the process.

An employee intending to resign from [enter-your-company-name-here] is required to give notice in accordance with their contract of employment.

Responsibilities

It is the responsibility of Management to ensure that:

• all required documentation is completed and returned to the Human Resources Department
• the employee is treated fairly during the period of notice
• all company property is accounted for at the completion of the notice period

It is the responsibility of the Employee to ensure that:

• required notice provisions and procedures relating to resignation are complied with

It is the responsibility of the Human Resources Department to ensure that:

• all cases of resignation are reviewed to ensure all beneficial feedback is recorded and appropriate action is take as a result of this feedback.
• where appropriate, resignations are followed by an exit interview;
• all paperwork and documentation is completed to ensure that the terminated employees receive their correct entitlements as soon as possible after the termination has taken place.

Procedure

• An employee wishing to resign must write a signed letter of resignation stating their name, the date of the letter, and date of resignation.  We encourage the employee to state their reasons for resignation; they need only do so if they wish.  The employee should give notice in accordance with their employment contract.
• The employee should pass the letter of resignation to their Manager, who should note on it, the time and date of receipt.  The Manager should confirm that the resignation is firm and may also ask for any reasons, if appropriate. 
• Discretion rests with the Manager regarding any relaxation of the period of notice that may be requested.
• The Manager should forward the letter of resignation to the Human Resources Department for inclusion in the individual’s personnel file and processing.  The Manager must nominate in writing, the date of the employee’s last day of service. 
• There may be cases where an employee reconsiders their decision to resign.  There is no obligation on  [enter-your-company-name-here] to accept a withdrawal of a resignation.  However, each case should be treated on its merits.  Consideration should be given to the employee’s performance and experience, together with the importance of the position and potential difficulty in finding a suitable replacement. Withdrawal of a resignation is not possible after the notice period has expired.
• Managers should ascertain the name of the employee’s new employer.  If it is believed that an individual is joining a competitor, it is preferable that they are paid in lieu of working out the notice period and leave the company immediately.  The reason this is suggested is that valuable company information, such as client lists, may be collected during the notice period.

Termination payments

The Human Resources Department will arrange for Payroll to prepare a final payment at the completion of the notice period.

Payment on termination will be in accordance with the terms of the individual’s contract of employment.  In the case of employees covered by an Award, provisions of the appropriate Award will apply.

In cases where the employer determines that the applicable notice period shall not to be worked out, payment is to be made in lieu.  The payment must be in accordance with legislative and/or Award requirements.  Where an employee requests early release from the notice period, and it is agreed by the manager, payment is made only for the time worked.

No payment in lieu is to be made if the notice period is worked out.

Certificate of service

As a rule, written references are not to be given to employees leaving [enter-your-company-name-here].  However, a Certificate of Service may be prepared by the Human Resources Department, with a copy to be included in the employee’s personal file. 

Exit interview

Feedback from employees leaving the organisation may provide valuable information with respect to their perception of [enter-your-company-name-here] and the way it is managed.  During the notice period Managers must arrange for the employee to attend an exit interview.  Any information obtained from an exit interview should be forwarded in writing to the Human Resources Department. 

The Manager and the employee must complete a Termination Checklist detailing all company property to be returned and other internal issues to be finalised.

On the satisfactory completion of the Termination Checklist, the Manager will pass on to the employee the letter outlining Termination Entitlements and Certificate of Service.  It is the responsibility of the Manager to ensure that all company property has been returned before the employee receives their final payment.

All final documentation must be returned to the Human Resources Department for filing.