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CCSNJ Connection


What to Do When Employees Resign


By: Susan S. Hodges, Esq.
Counsel and Chair, Employment and Labor Department, Parker McCay P.A.

We have been hearing a lot about the “Great Resignation,” and the number of employee resignations continues to rise. As a result, now is a good time to review some of the things that employers need to remember when employees resign. If your business does not have a clear procedure, consider the below, and then think about updating your existing employee handbook or other employment policies.

An employee gives you notice that they are leaving and offers the professional two-week notice period. What’s next?

It is up to the business to decide if it wants the employee to continue to work through the two-week period. Depending on the person, the position, and the access, it is important to decide if there is any risk to the employer in having the employee stay. Remind the employee that they cannot delete any company information from the network or their devices before they leave.

Check your files. Does the employee have a restrictive covenant, a non-disclosure agreement, or a non-compete agreement? If so, remind him/her of the obligation and provide a copy of the agreement. Provide the employee with information regarding his or her benefit plans and send a COBRA notice when appropriate.

Be sure to pay the employee all amounts owed for days worked on the next regular payroll. Check your policy regarding accrued vacation, sick, other paid time off, and even bonuses. If your policy requires that you payout certain earned benefits upon termination, do so. The last thing you want is to be fighting a wage and hour claim with a former employee. Remember that you cannot withhold money from an employee’s final paycheck unless he or she agrees in writing that you can do so.

Remove access to any company files and collect all company property – computer, phone, keys, access cards, etc. – the moment your employee leaves and is officially terminated.

If part of your protocol includes an exit interview, I recommend that you use that meeting to gain valuable information about why your employee decided to leave. This information should be captured and reviewed to identify any patterns that could be addressed in future policy updates or other organizational changes.

For questions, contact Susan Hodges at

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