Archive for the ‘Quitting Work’ Category
November 9th, 2009
By Joseph Devine
Resignations and firings are an integral part of business. After all, you as an owner are trying to do what’s best for your company, and your employees will be trying to do what’s best for themselves. Sometimes these are two different things, and you have to part ways. As an employer, you need to know the legal ramifications of an employee resigning, and what your financial obligations toward him or her are.
Most employers in the United States are called “at-will employers,” meaning that they have no obligation to provide a leaving employee with a severance package, nor does an employer have to give advance notice when laying off an employee.
Do We Owe Them a Severance Package?
Many states do not have laws requiring a severance package, and many companies do not award these packages to employees who resign. These policies are on a business-by-business basis, and your company should have a system in place governing who gets a severance package. Often, these severance agreements have provisions that prevent a former employee from finding work with a competitor, or from attempting to sue their former employer.
When Do We Have to Pay Them Their Final Paycheck?
In many states, resigning employees must be issued their last paycheck by the next payday. This paycheck must be for all owed moneys. You are not obligated by state law to reimburse the resigning employee for unused sick leave or vacation time, unless your company specifically has a policy promising this. Many employers find it useful to offer compensation for these unused leave days if the employee agrees to giving the traditional two weeks’ notice. It serves as an incentive for the employee to give you a heads’ up.
The Threat of Litigation
Most employees leave their employer because they find a better offer someplace else. It’s a natural part of the business cycle, and usually there is no hard feeling because of it. However, sometimes, the employee leaves because he or she feels that their employer has not provided a safe, positive work environment. If this is the case, the employee might have a case against you. It can be useful to ask all resigning employees to fill out a resignation form stating whether or not they are leaving due to harassment. If they answer no, then you have written documentation that can help you in the off-chance of legal action.
For more information about the legal aspects of an employee’s resignation, visit http://www.slaterandkennon.com
Joseph Devine
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