End of Employment

Guide for Employers and Managers

Considerations

  • a verbal resignation is as valid as a written one, although it can be harder to provide evidence. The employee should confirm the resignation in writing
  • the employee is normally bound by the contract of employment to work a period of notice
  • the employer should always accept a resignation and confirm that acceptance in writing, specifying the last day of work and final payment details

Other than working the notice, the employer can consider other options, which should be agreed with the employee:

Garden Leave

  • normally involves sending the employee home and excluding them from the premises and/or from having any contact with other employees, customers or suppliers
  • during Garden Leave employees are still bound by the terms and conditions of employment. Garden Leave is generally given to senior executives or sales staff
  • the employer needs to ensure that the employee does not suffer a detriment as a direct result of being placed on Garden Leave, for instance long notice periods can negatively affect the employee’s ability to carry out a job in the future and/or the employee may lose money especially if the role is commission or bonus based. In both instances the employee may be able to make a successful claim to an ET for compensation

Pay in lieu of notice (PILON)

  • a PILON is a payment made to an employee in place of working notice. In other words the employee’s finishing day will be brought forward and payment made in lieu of the notice period
  • it is highly recommended that the employer should seek the agreement of the employee before paying PILON, as there may be a breach in the contract of employment if PILON is forced through without the employee’s consent

Other Considerations

  • calculating final payment taking into account overtime, commission, outstanding holiday pay, outstanding loans, share option and bonus schemes
  • checking the rules of the pension scheme, particularly if the employee is retiring early by mutual agreement
  • conducting an exit interview
  • recovering company property including computer, mobile phone, car, security passes
  • arranging a leaving gift or social event
  • planning for the pending vacant position or division of duties

 

A Personnel Solution

End of Employment

 

APS Policy and Procedure

  • set out a standard process and details action required by the Employer and Employee

APS Letters and Forms

  • provide end of employment letters and exit forms

APS.....leaving on a good note!

This information should only be used in conjunction with A Personnel Solution terms of use