HR Compliance Information Specialists - LegalWorkplace.com
Sign In | Register | View Cart
 

Brought to you by the Alexander Hamilton InstituteBrought to you by the Alexander Hamilton Institute

 
  Speak with a customer care representative
by dialing toll-free (800) 879-2441
Speak with a customer care representative by dialing toll-free (800) 879-2441
FREE E-NEWSLETTERS
Bonus: Sign up today and get a free report, How To Conduct HR Audits.

Employment Law Today
Benefits Alert
HR Soapbox Blog
E-Mail:  Go

We value your privacy.
Research Topics
Benefits
Discipline/Performance Issues
Discrimination
Hiring
Leave
Payroll Management
Privacy Policy Guidelines
Record-Keeping Documents
Safety & Health
Termination
Training
Free Reports
Free HR Forms
Free Job Descriptions & Interview Questions
State DOL & Other HR Websites
Message Board
AHI Store
Products by Topic
Products A to Z
Web Conferences
Labor Law Posters

 

Subscribe: RDF Feed


Recent Posts:

 


Categories:



Forward blog to a friend.

Cathie's Corner Blog

How Do You Handle An Employee's Resignation Notice Period?

(Pay, Termination) Permanent link

(Published October 26, 2009)

The economy must be getting better, in my opinion.  The number of questions I'm hearing from people who have successfully found new jobs is increasing.  But the question that comes up most often is one that disturbs me somewhat.

I don't know if it's paranoia or if the questioners have reason to ask, but I'm getting numerous questions along this line: "If I give my notice and I'm immediately walked out the door, does my employer have to pay me for my notice period?"

The answer, of course, is no; there is no such requirement outside of a legally binding contract or collective bargaining agreement.  But it worries me that the question arises so often.  I have never worked for a company that would not pay a resigning employee if it indeed found it necessary to release the employee early.

It's not that I don't understand why an employer might not allow an employee to work out their notice.  I completely understand that in some cases, it's necessary.  When your top salesperson gives notice, you don't want to wonder whether they're promoting your product or that of their new employer.  Or if it's a problem employee, you just want them out as quickly as possible before they can cause any more trouble than they already have.  I've accepted notice early when it was warranted, but I've always paid the employee for the time.

There are several reasons for that.  One, it's just plain good manners.  If they had the courtesy to offer you notice, and you're unable or unwilling to allow them to work out the time, it's rude not to provide them with the pay they would have gotten if they did.  Then there's the question of unemployment.  In many states, if you do not accept notice that is offered and do not pay it out, part or all of the time can qualify the employee to receive unemployment benefits.  Is it really worth a potential increase in your rates to save a few days' pay?  Even in these tight times?

Hopefully, cases where an employee gives notice but is released immediately and without pay are the exception rather than the rule.  You don't really want to get a reputation for early, unpaid releases when an employee gives notice; otherwise, you'll soon find that none of your employees give notice at all.  It's all very well for you to decide that you don't need the employee in question to hand off his work to someone else and that he can leave immediately, but it's another thing to have all your employees quitting without notice, leaving you with no idea what their passwords are or the status of the Johnson account.  You want to be the one to make the decision; you don't want it taken out of your hands.

So consider the long term when your employees give notice — there's more to think about than just the immediate pay period!

Catherine Bannon is an HR consultant in Marshfield, MA (catherine.bannon@gmail.com). Bannon worked for 10 years in HR management before starting her consulting practice.


I am glad to see someone agrees with that if someone gives notice they should be paid for the two weeks regardless if they are allowed to work out the notice period or not.
Posted by: Patty Kelly, VPHR at 10/27/2009 1:09 PM


We always pay out the notice. As you mentioned it is just good manners. Additionally, not allowing an employee to work out their notice period AND not paying them can turn a voluntary resignation into an involuntary one. Nowadays this results in not only higher unemployment costs/claims, but also the requirement to pay the COBRA for an involuntarily termination. It also sets up the employer for other liability issues that are easy to avoid by just paying them their notice period.
Posted by: RM-HR at 10/27/2009 1:32 PM


Although I agree with most of the article and comments, I have to disagree that in ALL cases notice should be paid out because it's "good manners" because they gave you the courtesy of notice. I've seen people give notice grudgingly and come to work each day with a negative attitude and doing as little work as possible. I've seen ee's try to turn other ee's against the company and encourage them to leave as well. I might still be advisable to pay out the notice for other reasons as stated, but not as a "courtesy" for them having given notice. I've seen instances where I would rather they had not.
Posted by: linda at 10/27/2009 2:44 PM


Another approach is to ask the empolyee if they could start their new employment 2 weeks sooner? If that doesn't work t certainly is worth 2 weeks pay to be rid of an unproductive, marginal or disruptive employee. Just don't give them a going away party!
Posted by: Robert J liguori, JD at 10/27/2009 3:51 PM


Have they considered what it looks like to other employees if you terminate someone the minute they give notice? If that's the case, why would anyone ever get notice. Minus an employment contract notices aren't required - they are a courtesy the employee give the employer.
Posted by: Wayne Musick SPHR at 10/28/2009 4:39 PM


I have a physician questioning how we can require employees to give us longer notice prior to leaving our employment. He states two weeks is not long enough. I agree but know of no regulations requiring any length of time for notice of terminating from employment. Does anyone? Never seen this. Thanks to everyone.
Posted by: Sharon at 10/29/2009 12:43 PM


I have always believed that voluntary resignations should be handled in a positive manner--including pay in lieu of notice, even if the individual is considered "marginal". I had a situation about 10 years ago when I was consulting. There was an employee who was considered "marginal" and had submitted his resignation. The VP of HR wanted to just get rid of him, but I convinced her to handle this professionally and positively. I talked with the employee, and gave him the option of working out his time or pay out the two weeks--he opted for the two weeks pay. Fast forward, three years, I have an interview with the CEO of a company for a consulting assignment and--ta da, guess who is the CEO. He remembered me, and said he always appreciated how professionally he was treated and that he knew the company had wanted to let him go, but I had recommended he be paid. (In spite of the fact that HR assumes employees are unaware of decisions--the truth is employees are often very aware.)

I have often thought what that "reunion" would have been like if I had followed the VP's choice.

--yes, he did hire me for the assignment.
Posted by: Merlynn Bertini at 10/29/2009 12:52 PM


Leave a comment
Name *
Email: *
Homepage
Comment


Sign Up To Receive Cathie's Corner Blog

Copyright © 2010 Alexander Hamilton Institute | Home | Privacy Policy | About AHI | Contact Us | Site Map