Employee retention is not always in our control, and the process of recruiting and transitioning to a new employee can be challenging. One practice that eases this transition is the requirement for employees to provide a ‘notice’ before they resign.
Understanding the Concept of Notice
When employees decide to end their employment, it’s customary (and often mandatory) for them to inform their employer beforehand. This advance intimation is what we refer to as ‘notice’. Notices can be conveyed either verbally or through written communication.
Typically, an Employment Agreement outlines the duration of the notice period. The notice period commences a day after the resignation intimation and concludes on the final day of employment.
Handling Employee Resignation
When an employee tenders their resignation, you, as the employer, typically have two courses of action:
- Ask the employee to serve their entire notice period.
- Allow them an early exit but compensate them for the notice period.
Why might you choose one over the other?
For instance, if an employee is involved in a crucial ongoing project, you might prefer they complete the notice period. On the other hand, if an employee’s presence might negatively impact team morale, you might opt for an early release.
Regardless of the choice, it’s imperative to settle all dues with the resigning employee, including any accrued benefits and leaves. Additionally, ensure that the employee returns all company property and proprietary information.
Addressing the No-Notice Resignation
What if an employee departs without giving notice? This scenario can be both complex and awkward. While you cannot compel an employee to come to work, several factors motivate them to serve the notice period.
One primary reason is the desire to maintain amicable relations with past employers. A positive rapport ensures favorable references and aids in networking, both of which are pivotal for future career prospects.
Furthermore, there’s a financial incentive: if an employee doesn’t serve their notice period, employers may have the right to deduct a commensurate amount from the employee’s final paycheck.
Dealing with Excessive Notice
Sometimes, you might encounter a highly proactive employee who provides more notice than stipulated. As an employer, you have the discretion to either accept this extended notice or stick to the minimum period as outlined in the employment agreement. In such cases, it’s important to communicate your decision clearly to the employee.
Navigating through employee resignations can be daunting. However, with a clear understanding of notice periods, you can ensure a smoother transition. While it’s ideal for employees to provide ample notice, should they fail to do so, there might be financial implications on their final compensation.
Staying vigilant about notice periods and understanding their nuances can greatly simplify HR management. If you’re uncertain about notice-related protocols or need assistance, don’t hesitate to reach out to us at Sprintlaw – we’re here to guide you!