Understanding employee resignation
Resignation is an employee's choice to end the employment relationship. While straightforward in most cases, proper handling ensures a smooth transition and protects both parties.
Resignation basics
- Voluntary decision by employee
- Should be clear and unambiguous
- Written resignation recommended
- Notice per contract/award
Final entitlements
- Outstanding wages
- Accrued annual leave
- Long service leave (if eligible)
- No redundancy pay
Notice requirements for resignation
Unlike employer-initiated terminations, the NES does not set minimum notice periods for employee resignations. Notice requirements typically come from:
Sources of resignation notice requirements
Handling the resignation
When an employee submits their resignation, employers should follow a clear process:
- Acknowledge in writing: Confirm receipt and final date
- Confirm notice period: Agree whether notice will be worked
- Plan handover: Arrange knowledge transfer and handover
- Calculate entitlements: Prepare final pay including leave
- Exit processes: Return of property, system access removal
- Exit interview: Optional but valuable for feedback
"Heat of the moment" resignations
If an employee resigns in anger or distress, employers should allow reasonable time (usually 24-48 hours) for them to reconsider before treating the resignation as final. The Fair Work Commission may find a dismissal occurred if an employer immediately accepts a resignation given in the heat of the moment.
Final pay on resignation
Included in final pay
- Wages for hours worked
- Accrued annual leave + loading
- Long service leave (if eligible)
- Outstanding commissions/bonuses
Not included
- Redundancy pay
- Personal/sick leave (not paid out)
- Notice pay (if employee initiated)
- Future bonuses not yet earned
Common resignation mistakes
Accepting hasty resignations
Immediately accepting a resignation given in anger or distress without allowing time for reconsideration may be treated as dismissal.
Withholding entitlements
Not paying accrued annual leave or other entitlements because the employee resigned. All accrued entitlements must be paid.
Improper deductions for unworked notice
Deducting pay for notice not worked without checking if this is permitted by the award or contract.
Key takeaways
Employee resignation is the voluntary end of employment. Notice requirements come from contracts and awards rather than the NES. Final pay must include all accrued entitlements, and hasty resignations should be handled carefully.
Accurate leave and hours records make final pay calculations straightforward. RosterElf maintains these records throughout employment, supporting smooth departures with compliant final payments.
