HR Advice Hub

What Should Employers Do When An Employee Resigns?

When an employee hands in their resignation, it can be tempting to focus solely on replacing them and getting through their notice period.

However, there are several important steps employers should take to ensure a smooth transition, protect the business and maintain a professional relationship.

Having a clear process in place can help prevent misunderstandings and ensure nothing important gets overlooked.

Acknowledge the Resignation

Once an employee resigns, it is good practice to confirm their resignation in writing. Your response should include:

• Their final working day.

• Their notice period.

• Arrangements for annual leave.

• Any expectations during the notice period.

Keeping a written record helps avoid confusion later.

What If an Employee Resigns Verbally?

Not all resignations are submitted in writing. An employee may resign during a conversation or in the heat of the moment. Where possible, ask the employee to confirm their resignation in writing. If they choose not to, you should confirm your understanding of the conversation in writing and keep a record.

If the resignation was given during an emotional situation or following an argument, it may be sensible to allow the employee some time to reconsider before treating the resignation as final.

Check the Notice Period

Before making assumptions, check the employee's contract. Consider:

• The contractual notice period.

• Whether statutory notice applies.

• Whether the employee will work their notice.

• Whether payment in lieu of notice (PILON) applies.

• Whether garden leave provisions exist.

Understanding the contractual position early can help avoid disputes.

Plan the Handover

A good handover can reduce disruption and help preserve valuable knowledge. Think about:

• Outstanding work.

• Customer relationships.

• Key contacts.

• Passwords and access information.

• Training notes for colleagues.

Review Annual Leave

Employees may have outstanding holiday entitlement when they leave. You should calculate:

• Accrued but untaken holiday.

• Holiday booked during the notice period.

• Any holiday pay due.

• Whether excess holiday has been taken and can be recovered, if the contract allows.

Think About Company Property

Before employment ends, make sure all company property is returned. This may include:

• Laptops.

• Mobile phones.

• Keys.

• Uniforms.

• ID cards.

• Credit cards.

• Company vehicles.

You should also arrange for system access and email accounts to be removed.

Consider an Exit Interview

Exit interviews can provide useful feedback about:

• Management.

• Workload.

• Training opportunities.

• Culture and communication.

• Reasons for leaving.

Patterns in feedback may highlight areas for improvement.

Confirm Final Pay

Final pay may include:

• Salary owed.

• Holiday pay.

• Overtime or commission, where applicable.

• Authorised deductions.

Employees should also receive their P45 after leaving.

Can an Employee Withdraw Their Resignation?

Occasionally, an employee changes their mind after resigning. Employers are not automatically required to accept a withdrawal of resignation. Whether to agree will depend on the circumstances and the needs of the business. Before making a decision, consider:

• Whether a replacement has already been recruited.

• The reason behind the resignation.

• Whether the employment relationship can realistically continue.

Each situation should be considered individually.

What Happens If an Employee Refuses to Work Their Notice?

Sometimes employees leave immediately without working their notice period. Although this may technically amount to a breach of contract, pursuing legal action is rarely practical unless the business has suffered significant financial loss.

In most cases, employers are better served by focusing on minimising disruption and moving forward.

What Happens When a Fixed-Term Contract Ends?

Not every departure involves a resignation. Where a fixed-term contract comes to its natural end, this is generally treated as a dismissal rather than a resignation. Employers should still follow appropriate procedures and consider any rights the employee may have.

Employee Resignation Checklist

When an employee resigns, remember to:

✔ Confirm the resignation in writing.

✔ Check the notice period.

✔ Arrange a handover.

✔ Calculate annual leave.

✔ Recover company property.

✔ Remove system access.

✔ Process final pay.

✔ Issue the employee's P45.

✔ Update employee records.

✔ Consider an exit interview.

Having a checklist can help ensure nothing gets missed.

Need HR Support?

Employee resignations are a normal part of running a business, but there are several practical and legal considerations to think about. From notice periods and annual leave calculations to handovers and final pay, having the right process in place can make things much easier.

At BloomHR, we help small businesses manage the entire employee lifecycle with practical, friendly HR support that keeps things simple and helps employers stay compliant. Contact us for more information.