When an employee resigns

Introduction
When an employee wants to resign, you can try to persuade them to change their mind
but you can't refuse to accept their resignation.
If they later withdraw their resignation, generally you don't have to agree to them
continuing to work for you. You should act carefully though if the employee has handed
in their notice in controversial circumstances, eg after an argument.
This guide sets out what you should do when a staff member resigns. It also gives advice
on how to carry out an exit interview and deal with resignations in difficult situations.
Check if the resignation is necessary
irst find out why the employee wants to resign. Is there anything you can do to make
them change their mind!
The resignation may be due to family commitments that mean the employee is unable to
continue working the same hours for you. "re there changes you can make to working
arrangements to accommodate this!
If the employee is resigning to work for one of your competitors, consider whether it
would be worth improving their remuneration#benefits package, working environment or
looking into their promotion prospects.
What to do when an employee resigns
$nce you have accepted an employee's resignation, make their departure as smooth as
possible by following this checklist.
Get written confirmation of the resignation. This will help you avoid disputes
over the exact date of the resignation and the start of any notice period. "sk the
employee to include their date of resignation in the letter.
Confirm the employee's notice period. %mployees will usually have a notice
period as part of their contract of employment. If they don't, then the statutory
notice will apply. You can make the notice period longer or shorter if both parties
agree.
Where appropriate, agree with the employee the terms of an announcement to
other staff concerning their departure.
Organise a handover period. This allows for a smooth handover of key tasks
and responsibilities.
Try to find out why they have resigned. Invite them in confidence to tell you
why they are leaving, and whether they have unresolved grievances or
suggestions for improvements.
Retrieve security passes and all other company property, eg tools, uniforms,
computers and company cars.
Organise their final payment. &emember to include all money owing, eg pay in
lieu of working a notice period, money for unused holidays, overtime and bonus
payments.
art on good terms. The person leaving may become a client or may be able to
refer business to you. %'ually, a disgruntled ex(employee can damage your
business verbally if they leave on poor terms. If appropriate, organise a farewell
gift or party. )ake a point of saying goodbye on the actual day the person leaves
and thank them again for all their hard work.
!e careful a"out references
#inding out why people leave
When employees leave ask them in confidence why they're leaving.
*se their response to determine whether there are any underlying issues to be
addressed. If more people are leaving one part of the business than others, perhaps staff
are having problems with something or someone in that area ( although remember there
are two sides to every story. It's dangerous to act too hastily against other members of
staff on the basis of information obtained during an exit interview. %nsure there is a fair
investigation.
+etting employees to reveal the real reason they're leaving can be difficult. ,eing offered
more money elsewhere, for example, doesn't fully explain why they started seeking a new
-ob. .erhaps they didn't get on with their manager, or felt they'd been unfairly overlooked
for promotion.
/ome useful 'uestions include0
What have you en$oyed the most%least!
What sorts of pro"lems have you found!
1ow well did you understand your role!
1ow effective is the communication#consultation!
1ow easy was it to get on with your boss#colleagues!
To what extent do you feel your work was valued!
Were your skills and talents used effectively!
To what extent did you feel your role was secure!
1ow satisfied were you with money, terms and conditions, facilities,
e&uipment!
1ow does your current role compare to your new -ob!
When did you begin looking for another -ob!
The employee's answers may be influenced by their need for a reference.
Ideally someone other than the leaver's manager should try to find out why they're
leaving. They may have difficulty telling their manager about problems with their -ob or
department.
You should also look out for reasons that might lead to employees claiming constructive
dismissal or discrimination. These wrongs could be corrected before the employee leaves
but beware not to suggest any reasons or say anything that could later be used against
you.
Resignations in the heat of the moment
/ometimes an employee may say that they are resigning after an argument with their
manager or another colleague. In such situations they might not really have meant to
resign. If this is the case, it is dangerous to act as though the contract has ended because
the employee could later claim unfair dismissal.
If an employee seems to have resigned or has walked out after an argument0
2on't immediately assume they have resigned.
+ive the employee a 3 cooling off3 period.
Take action to find out whether they really meant to resign.
If you can't contact them, wait a reasonable time before starting termination
procedures.
Investigate further if you receive additional information relating to the situation,
eg that they may have been bullied by a colleague#their manager.
You should also be careful not to say things in the heat of the moment that could be
misinterpreted as a dismissal. It is a good idea to train management in handling conflict.
This can help to nip workplace problems in the bud, rather than allowing them to escalate
to the point where formal procedures need to be applied.
Resignations where the employee may claim
constructive dismissal
"n employee may be entitled to resign if you breach a fundamental term of their
employment contract. This is known as constructive dismissal.
,reaches of contract that may give rise to unfair constructive dismissal claims might
include anything which makes it impossible or intolerable for the employee to continue
doing the -ob.
%xamples include0
unilaterally cutting ( or trying to cut ( an employee's wages or salary or other
contractual benefits
transferring an employee to a different -ob or location in the absence of any stated
or implied contractual right to do so
failing to provide a safe place of work
breach of the obligation of mutual trust and confidence implied in every
employment contract
or this reason you should always seek the employee's prior written agreement when you
propose to change their employment contract.
"s of 4 $ctober 5667, employees must normally begin the statutory grievance procedure
before bringing an unfair constructive dismissal claim or the complaint will be re-ected. If
the procedure is begun but ( due to a failure by the employee ( not completed, any
compensation awarded by the tribunal for unfair dismissal will be reduced.
&eview the new statutory dispute resolution procedures at the 2TI website.
Resignations connected with a "usiness transfer
If a business is ac'uired by another business by asset transfer as opposed to share
purchase, in most cases the employees of the old business will automatically transfer to
the new business on their existing terms and conditions.
1owever, an employee can't be transferred to a new employer against their will and may
ob-ect to the transfer before it takes place. In this case, if they refuse to have their
contract transferred to the new employer, the employee is regarded as having resigned
with effect from the transfer date. "s a result there is generally0
no dismissal
no right to redundancy pay
no obligation for the new employer to take them on
" change in terms and conditions, however, following the transfer ( provided the change
is to a fundamental term of the contract ( will entitle the employee to resign and claim
unfair constructive dismissal. /uch a dismissal will be treated as automatically unfair.
'cas (elpline
6879: 7: 7: 7:
)&uality *irect at 'cas (elpline
6879 ;66 <777
Related we" sites you might find useful
#ind out more a"out tackling discrimination and promoting e&uality on the 'cas
we"site
http0##www.acas.org.uk
#ind out more a"out constructive dismissals on the *TI we"site
http0##www.dti.gov.uk