When an employee resigns, it can be a stressful time for you as an employer. Because now you need to find a replacement for your employee and get one of your staff members to take on extra work while you wait for your new employee to start.
But knowing how to effectively manage this process can make things easier for you and prevent your employee's resignation from affecting company productivity.
But there's one part of your employee's resignation you probably haven't thought of yet and it revolves around understanding what he's legally entitled to receive as part of his termination pay.
Here's what you have to pay your employee when he resigns
According to the Labour Law for Managers Loose Leaf Service, termination pay usually refers to the following:
It's important to keep in mind that not all types of termination pay are relevant when your employee resigns. For instance, an employee who resigns won't be entitled to severance pay. This is because his services aren't being ended for operational requirements. In the same way, 'an employee who leaves without giving notice won't be entitled to receive notice pay' explains the Loose Leaf. You can also agree with your employee that he'll leave immediately and won't be paid in lieu of notice.
But there's more to termination pay…
Another important factor when it comes to termination pay is that, you still have to pay your employee the following when he resigns:
Knowing what you have to pay your employee when he resigns will help you manage all aspects of his resignation more effectively.