An employee must tell their employer when they intend to resign as well as their final day of employment. The employer should have enough time to find cover and ensure a smooth transition. This act is called ‘giving notice.’ The time between an employee stating their intention to quit and the actual last date of employment is called the ‘notice period.’
Depending on the provision of their employment agreement, or collective agreement; an employee may have to work during their notice period or lose some of their final payment.
The notice period is usually:
- The same for employers and employees.
- Mentioned in the contract or agreement.
- Required to be in writing.
How much notice does an employee have to give?
There is no legal requirement for a minimum notice period. However, this is a term that is usually agreed between the employer and employee when negotiating the employment agreement.
Some factors to consider when deciding how long a notice period should be:
- Duration of employment for the same employer or organisation.
- The type of industry and sector.
- The type of job.
- Common practice in the workplace.
- How long might it take to find a replacement to fulfil the position.
If there is no notice period in the employment agreement, the employer and employee can mutually agree to a reasonable notice period.
Ending the notice period early and other arrangements
There are several reasons why an employee might want to resign and end their employment. Some may want to start a new job or relocate to a new country for further opportunities. For this reason, an employer and employee can negotiate the notice period terms to suit their specific needs.
Some of the most common requests from employees include:
- Waive the notice period entirely (this is common for employees who want to start a new job sooner).
- Work for only part of the notice period and waiving the remainder.
- Use some annual leave within the notice period.
- Go on garden leave.
These arrangements can only be made if both parties agree to them. It is not unlawful for an employer to decline if the request is unreasonable or detrimental to the business.
Last days of employment
In the lead-up to the employee’s final day, employees should tie up any loose ends in the workplace and give all company property back to their employer.
A proper and thorough handover is recommended to ensure the remaining staff members will be able to handle the transition smoothly. The employee who is leaving should also finalise any work and let staff know where to find things, file documents and perform other relevant tasks.
Final payment notice
When an employee resigns, final pay should include any wages up to their last day of employment. If the notice period is waived or the employee only works for part of the notice period then their actual final pay will be adjusted depending on what was agreed.
Sometimes, an employer may wish to deduct an amount from an employee’s final pay if the required notice was not provided. This is only possible if the employer suffers a loss from finding cover as a result of the employee not providing enough notice. The Wages Protection Act 1983 protects employees against unlawful deductions, and in some circumstances deducting from final pay for notice not worked may be illegal. It is best to seek advice about your circumstances before deducting any money from an employee’s final pay.
This article is for general information purposes only and does not constitute as business or legal advice and should not be relied upon as such. It does not take into consideration your specific business, industry or circumstances. You should seek legal or other professional advice regarding matters as they relate to you or your business. To the maximum extent permitted by law, Peninsula Group disclaim all liability for any errors or omissions contained in this information or any failure to update or correct this information. It is your responsibility to assess and verify the accuracy, completeness, and reliability of the information in this article.