Employee Resignation Policy Template

These guidelines offer a solid foundation for the employee resignation (also called voluntary termination) policies at your company. They should be adapted to your organization’s individual needs.

Employee Resignation: Principle and Definition

Get the LMS Buying Guide
Get the LMS Buying Guide. Switch to a better LMS.
An employee resigns by officially communicating their intention to stop working for the company, via their supervisor or HR.

The employee will indicate the date their resignation comes into effect and may or may not give reasons for their decision.

Consider Employment Laws

Job abandonment is also considered employee resignation and involves the employee failing to show up at their workplace for three consecutive days without notice or legal cause.

It is important that your company is well prepared to handle voluntary terminations to ensure seamless transitions that will not hurt the business while maintaining a professional relationship with your departing employees.

This employee resignation policy gives guidelines for handling resignations in the company.

Application for All Company Employees

This employee resignation policy is relevant to all employees.

Employee Resignation Policy Components

Resignation Notice

Employee contracts have a clause on termination which stipulates the notice period required of either party to dissolve the contract. Where the employee does not provide the stipulated notice, the company may withhold the benefits due to the employee.

Resignation Process and Notice

When tendering a resignation, employees are requested to submit a written and signed letter for HR record-keeping. In case of verbal resignation, the employee will receive a letter of acceptance within two days to officially confirm the resignation.

Notice for resignation starts from the date the written resignation notice is officially received or when acceptance is given and signed by the employee for the verbal resignation. All resignations, whether written or verbal, should be directed to immediate supervisors and HR.

Payment for the Notice Period

There are cases where the company may prefer that a departing employee stops working immediately after resignation rather than serve the entire notice period. This depends on a variety of factors, including the circumstances surrounding resignation. In that case, the employee will be entitled to full payment for the notice period.

Resignation While on Bond

Sometimes the company may incur expenses on behalf of an employee who, in return, is bonded to serve for a certain minimum period. In case of resignation before such a period, resigning employees will be required to reimburse the company part or all of the expenses thereof.

Rescinding a Resignation

The company will submit an official acceptance of resignation within two days of receiving the resignation notice. Within this time, the employee may seek to revoke their resignation.

A decision on whether to grant such a request will be decided on a case-by-case basis. However, revocation is not possible after official acceptance.

Employees are therefore advised to come to a final and informed decision before giving an employee resignation notice.

Announcing Resignation

Employees should share their resignation decision with their colleagues and supervisors, subject to respectful compliance of company policy.

Team leaders and HR have a duty to inform upper management and all other employees, especially those to be directly affected by the employee’s departure.

Resignation Restrictions and Responsibilities

Forced resignations and wrongful terminations are not permitted within the company and employees must always resign of their own volition. If an employee chooses to resign, the company prohibits the following specific actions:

  • Deliberately creating a hostile atmosphere to precipitate a resignation.
  • Directly forcing or indirectly persuading an employee to resign.
  • Intimidating or retaliating against an employee.
  • Meting out unorthodox disciplinary actions to frustrate an employee into resignation.

We reserve the right to terminate employees who put the company at risk or flout our policies or employee labor laws.

Exit Interviews

The company is welcoming feedback from departing employees to improve our policies for greater employee satisfaction.

Hence, managers in conjunction with HR should arrange for exit interviews with departing employees who wish to participate. This exercise is purely voluntary and refusal to grant the exit interview will not attract any penalty from the company.

Exit interviews are professionally conducted, with the intention of assisting in the positive transformation of the company.

Rejoining the Company

The company has no objection to hiring former employees, providing they left on good terms and their skills and aptitude are still an asset to the company.

Whether or not they will be regarded as new employees will depend on when they were last employed by the company. Should they be considered new employees, their past service and rank will not be factored into their new terms of service.

Terminal Dues and Unused Leave

Employees will be paid for all the hours they have served the company. The final payment will be made within one month from their last day of service or as the law dictates. All unused paid vacation or sick leave will also be paid at that time.

Resignation Procedure

Employees should resign according to the resignation procedure.

HR Checklist

  • Discuss the intention to resign with their manager(s).
  • Discuss the circumstances that have prompted the resignation and establish if they are issues that can be resolved.
  • Submit a written and signed notice to the manager or HR as per the employee contract letter.
  • Consult HR to discuss all details and outstanding issues pertaining to the resignation.

Company Employee Obligations

Before the release of the employee’s final dues, they must surrender all company equipment. Further, employees must remove confidential files and passwords from company devices and submit their hand over notes.

It is important for employees to remember that confidentiality and data protection policies remain valid and binding even after leaving the company.

Download this policy sample:

Google Doc – Letter
PDF Document – Letter (.pdf)
Microsoft Word – Letter (.docx)
OpenDocument Format – Letter (.odt)
Rich Text Format – Letter (.rtf)
Plain Text – Letter (.txt)
Google Doc – A4
PDF Document – A4 (.pdf)
Microsoft Word – A4 (.docx)
OpenDocument Format – A4 (.odt)
Rich Text Format – A4 (.rtf)
Plain Text – A4 (.txt)

Disclaimer: This information is meant to provide general guidelines and should be used as a reference. It may not take into account all relevant local, state or federal laws and is not a legal document. Neither the author nor World Manager will assume any legal liability that may arise from the use of this information.

The best companies use World Manager to train staff, maintain standards, and set the company up on the road to success.