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Employee Exits Part 2 – What to Expect when an Employee ResignsPosted October 30, 2017

This is Part 2 of a two-part series on employee exits.

You might think that a resignation should result in a cleaner break as your now former employee receives their paycheck and moves on to their next opportunity; but all too often we see companies pay very real penalties for late payroll. Here’s what to do to ensure a smooth transition:

Let your HR Hero know right away – do not wait.

Too many times companies wait to tell us when they have an employee on their way out, but the devil is in the details and every state is different. For example, in California you must provide the employee with their final paycheck within 72 hours of their last day. Otherwise they are required to be paid out their wages (including weekends) until their final pay is in their hands.

Ensure you have their notice in writing with a specific date and compare it with the employee handbook.

Did they resign and give you two weeks-notice or did they hand it in and storm out the door? Typically, the resignation time period is what you will need to pay them regardless of whether or not you ask them to leave the day they submit notice. However, if they give you three days notice and ask to be paid for two weeks, you only need to pay them for three days. Your Employee Handbook policy will be the final factor in pay notice. Don’t require it in your handbook, only request it!

Skip the exit interview unless you really plan on acting on it.

Some companies are dedicated to hearing out their existing employees to improve retention and the overall company experience, but if you aren’t going to do that don’t fake it. It’s way more likely that it will become counterproductive and it is best to de-risk your business and move forward without a conversation unless you need one or will act on it.

Make sure to get a separation agreement.

Close things out the right way with a separation agreement. You want to ensure you have documentation that you can keep in their file from that point forward in case their future employers need to obtain access to it.

If you have more questions, ask your HR Hero.

The people business can be a messy one and we are here to help you navigate it, keep your sanity, and your business safe.

They are still entitled to some benefits.

Contact your HR hero. They can assist with their benefits, COBRA, final pay, separation agreement, and resignation notice.

If this blog made you realize that you need HR expertise and help; set-up some time with us here and we will get you on the right path.