Resignation

When a person has resigned, should you wish to release them from working their notice period (perhaps because they are keen to start another job, leave early to tend to family matters or travel, they are not happy at work, or you are worried they will take customer details or other sensitive information), you can consider the following options:

  • Pay the employee in lieu of them working their notice period.  This is where you pay the employee the wages/salary that would have been due, had they worked their full contractual notice period, instead of them working it.  This brings the termination date forward.  Check that you have a payment in lieu of notice (PILON) clause in the individuals contract of employment first. 
  • Release the employee from their notice period by mutual agreement.  This is where an employee wishes to leave without working their full notice period and you agree to let them go early.  The letter contains an agreement for the employee to sign so that you release them from having to work their statutory or contractual notice and they waive their right to pay that would have been earned, had they worked their full notice period.
  • Place the employee on garden leave.  A person on garden leave is not required to attend work, but is still bound by their contract of employment and cannot work elsewhere.  The employee must remain contactable to answer questions.  Check that you have a garden leave clause in the employee's contract of employment that reserves the right for you to place them on garden leave.