Resignation is the termination of employment initiated by the employee. That is, the employee voluntarily decides to end their employment and clearly communicates that decision to the employer.
When an employee resigns, they may have to give written notice via a letter to their employer.
The notice period:
An employee’s award, employment contract, enterprise agreement or other registered agreement sets out:
Giving more notice than required.
An employee can give more notice than what is outlined in the award, registered agreement or contract. An employer does not have to accept this and can choose to only let the employee work for the minimum notice period. When the employee resigns, the employer should tell the employee if they accept the full requested notice period or if they only want them to work the minimum notice period under their award, registered agreement or contract.
Taking leave during a notice period.
An employee can take annual leave during a notice period if the employer agrees to the leave. However, the employee can only take personal or sick leave during a notice period if they give:
An employer cannot force an employee to take leave as part of the notice period.
Who do notice periods apply to.
Notice periods do not apply to employees who:
Final pay is what an employer owes an employee when their employment ends. An award, employment contract, enterprise agreement or other registered agreements can specify when final pay must be paid. If it does not, the best practice is for an employee to be paid on their last day of work or on the next scheduled pay day.
An employee should get the following entitlements in their final payment:
Sick and carer’s leave is not paid out when employment ends.
After the employee resigns.
When an employee resigns, there are many things you need to do. Often, you will need that employee to finish up some of their work, and hand work over, or train their replacement.
On or before the employee’s final date of employment, you can request the employee to:
Record keeping obligations.
The employee’s resignation letter should be stored in the employee’s personnel file, with this file remaining private and confidential. Generally, no one can access them other than the employee, their employer, and relevant payroll staff. If requested by an employee, former employee or the Fair Work Ombudsman, employers must make copies of these records available.
Contact Employsure today on 1300 651 415 to learn more about resignation policies, entitlements and the calculating correct final payments.