Resignation Policy For Employees With Sample Template

What is an employee resignation policy?

The employee resignation policy serves as a structured framework within organizations. When an employee chooses to conclude their professional journey with the company, this policy provides clarity on the steps and procedures to ensure a seamless and dignified transition.

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Purpose of a resignation policy

The resignation policy provides a comprehensive framework detailing the procedures and best practices for managing resignations within the organization. 

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Recognizing that voluntary separations are an inevitable aspect of the corporate landscape, one has to meticulously design this policy. 

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The primary objective is to handle each resignation with utmost professionalism and integrity, minimizing any disruption. This ensures that the company continues its operations seamlessly, upholds its reputation, and provides clarity and support to both departing employees and the remaining team.

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Scope of a resignation policy for employees

The term "resignation" is defined as the act wherein an employee proactively communicates to HR or their immediate supervisor the decision to cease their employment with the organization. This policy applies to every member of the workforce.

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If an employee fails to report to work for three consecutive days without any prior notice or communication, such inaction is equivalently treated as a resignation or voluntary termination within the organization.

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Download the resignation policy template

A well-defined resignation policy clarifies the process for employees, ensuring smooth workflows and minimizing legal risks. It facilitates feedback through exit interviews, promotes a respectful departure, and enhances the company's image. 

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The policy not only provides a structure for notice periods but also underscores the company's values and commitment to professionalism.

Rules of resignation

A resignation process and its rules may vary from company to company, the type of contract involved and the type of industry. 

Usually, the resignation complies with the following rules and regulations say - 

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1. Write a formal written notice 

Resignations are typically expected to be given in writing, ensuring clarity and providing a record for both the employee and employer.

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2. Serving the notice period

Most organizations require a notice period, typically two weeks, though this can vary based on seniority or contractual terms mentioned in your offer letter. This allows time for transitions and finding replacements. In some cases, you can buy out the notice period.

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3. A clear communication between the employer and the employee

It's considered professional for the resigning employee to communicate their decision to their immediate supervisor or manager before informing colleagues. While not always mandatory, it's beneficial for both parties if the employee provides a reason for their resignation.

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4. Returning the company property and handover of duties

Resigning employees should return all company-owned items, including ID cards, electronics, keys, and uniforms. During the notice period, employees are expected to complete their pending tasks and facilitate a smooth handover to their successor or team.

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5. Exit interview and full and final settlement

Many companies conduct exit interviews to gather feedback and understand the reasons behind an employee's decision to leave. Resigning employees should ensure they receive all owed pay, benefits, or entitlements, such as unused vacation days or bonuses.

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6. Honoring the confidentiality and non-compete

If there are confidentiality agreements or non-compete clauses in the employment contract, employees are expected to honor these even after their resignation. Adherence to company policies, especially those concerning non-disclosure or non-disparagement, should continue even after the employee has left.

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The resignation process for employees

The employees of the organization are encouraged to adhere to the following resignation process - 

1. Initiate a face-to-face discussion with their managers to communicate potential resignation intentions.
2. Engage in dialogue about any prevailing concerns or challenges that might be addressable.
3. Submit a formal written notice, duly signed, to both the manager and the HR department, preferably two weeks ahead of the intended last working day.
4. Arrange a meeting with HR to go over full and final compensation details, including any outstanding wages and benefits. 
5. On the final day, it's imperative that employees return all equipment belonging to the company. 
6. Additionally, employees should erase any confidential data and passwords from their personal devices. Please note that the company's confidentiality and data protection policies remain applicable even post-employment.