Resignation

What is Resignation?

Resignation is defined as the act of an employee leaving a role or position within an organisation willingly and of their own accord. Indicating one's intent to resign begins with either a written resignation letter or an email. One may decide to resign driven by a multitude of reasons, such as workplace dissatisfaction, better job opportunities, personal reasons, as well as career growth.

From a workforce management perspective, resignations must be handled with care as doing so has implications for operational continuity, employee morale, and legal compliance.

How is a Resignation Communicated?

An outline of how a resignation could be communicated includes, but is not limited to written notice which might take the form of:

• A resignation letter is directed to the supervisor or HR Personnel.
• A Notice period, which can range from fifteen to ninety days, is set based on company policy or employment contract.
• In certain instances, an exit interview is conducted with the aim of collecting feedback.

What is HR’s Role in the Resignation Process?

HR has the crucial role in ensuring that resignations are executed efficiently. Their responsibilities usually encompass:

• Accepting and confirming the acknowledgement of receipt of the resignation notice.
• Implementation and settlement of outstanding payroll dues, including final payment, settlement of unused leaves, Provident Fund (PF), and so on.
• Conducting the exit interview to analyse the trend of employee turnover.
• Securing company property and removing access to system internals.

Is Resignation the Same as Termination?

No. We can define resignation as an employee-driven action, while for termination, we can define it as an employer-driven action. Both of these events conclude the employment relationship; however, the reason this happens and how legal aspects of the situation will differ a lot in both cases. Also, in each case, the documentation basis will be different.

What Are the Impacts of Resignation on Workforce Planning?

An employee’s resignation will lead to the creation of a new vacancy, which would disrupt overall team productivity or the completion of a specific project within a deadline. Workforce planning teams are to:

• Shift responsibilities as soon as possible.
• Determine whether to fill the job through internal promotion or external hiring.
• Identify departments or areas most vulnerable to headcount loss early in the term.

Key Takeaways

• A resignation is a one-sided decision made by the employee.
• Appropriate advance notice, along with the right paperwork, is needed.
• It’s the responsibility of HR to manage offboarding and resolve legal issues.
• Acting timely after resignation minimises disruption to workflows.