Be compliant and professional when an employee resigns

An official resignation letter from an employee about to leave the company is not the end but the beginning of several key steps to ensure a smooth departure.

With the standard two to three weeks’ notice, there’s time to wrap up projects or transfer work duties to someone else. Plans for recruiting a replacement may be the next priority on your list.

Here are some things to keep in mind for an employee ending checklist:

The last paycheck

State laws must be followed when the final paycheck is issued to the departing employee. There are several items to consider including 401k, any bonuses or payment advances, sick days, company expenses, taxes, withholdings, accrued vacation and more on the final date of work. Final pay is usually due by the next payday, but check with state laws to determine that.

It’s also a good idea to ask the employee to update and/or confirm their address, phone number and emergency contact information so that W2s, benefits statements, and other notices will be forwarded to their correct address.

Benefit eligibility

As an employer, there’s information that you need to provide to the resigning employee. They will have questions about their benefits before leaving your company.

Some states require a separation notice, which will detail the reason for the employee’s departure and their final work date in order to claim unemployment benefits. Whether they are eligible for those benefits will vary depending upon the state.

Be sure to also discuss continuing their health and retirement benefits, especially if they need health insurance through COBRA.

Do you have an offboarding program?

A strong onboarding program is important when a new hire joins a company, but offboarding employees in the right way is just as critical. Exit interviews not only help the worker part with their employer on positive terms, but also help the company learn about the practices and office culture that may need improvement.

Today’s technology also automates the offboarding process for streamlining workflow, collecting data from exit surveys and more to make the employee’s exit much more efficient. With planning, offboarding doesn’t have to be an afterthought.

The way an employee leaves says a lot about their character, and that includes the company leadership and how they handle departing workers. Did you know when an employee doesn’t show up for three days without notifying anyone at the office that it can be considered a resignation?

Be sure to check back with us in September when we’ll explore job abandonment and what employers need to know if someone is a no-show at work. In the meantime, if you have any questions about requirements for employee departures, contact your IPS representative.