Part of the reality in managing a company is when an employee leaves. It’s a normal occurrence. And as a human resource manager, it could somewhat devastate you, especially if it’s an excellent employee who’s leaving. You have no control over an employee’s career. So, the only thing you can do is to formally dismiss an employee from their duties in the company. You do that by issuing them a separation notice letter. We can help you with that by offering our Separation Notice Examples & Samples. Have a glimpse of them here!
A separation notice is a written document that states an employee’s job separation from the company, along with the reasons why he or she is leaving the workforce. Most of the time, the reasons stated in a separation notice for an employee leaving aren’t due to poor performance or violations against company policy. Instead, it’s because an employee has found new opportunities in other companies, opted to shift careers, or went to retirement.
A separation notice is very important. For an employee who’ll leave the company for valid reasons, not due to poor performance or violations, a separation notice ensures that he or she has clean records before leaving the company. And for the employers, they can use the separation notice as a defense incase a past employee accuses them of unfair dismissal. Simply put, a separation notice ensures that the employer and employee agree upon the circumstance of their formal separation.
As we’ve said earlier, employees leaving your company is a normal occurrence. Every month, quarter, or year, there could be one, two, or more employees who’ll submit their resignation letter. That said, you could be preparing several separation notice documents soon. So, be familiar with the basic process of creating them by reading our short guide below.
First of all, a separation notice is an official document of your company. But it won’t be such if it doesn’t have the company name and logo. So, make sure to input them at beginning of the document. Include as well the company’s address and contact information.
After the company details, input the employee details. That, of course, includes the employee’s complete name, job title, and department. You can also include the ID number if your company issues employee identification cards. It would also help if you’ll include the date when the employee submitted his or her resignation. That would make the separation notice more detailed.
List the reasons why the employee wants to leave the company. It’s likely that the employee’s reason for leaving is stated in his or her resignation letter. But if not, you have to find it out. Do that by openly approaching and communicating with the employee. That would be a great opportunity to have a nice talk with the employee. You can talk about his or her overall experience with the company, such as how well the managers treat people and the general workflow.
Employees who exit the company on good terms deserve to receive some compensation from their employers. In that case, make sure to discuss what compensations the resigning employee will receive. It could be a handsome separation fee, continued coverage of HMO for several months, and many more. It’s up to you as the employer what gestures of gratitude you want to express towards the employee. His or her years of service in your company shouldn’t be taken for granted.
Lastly, specify the date when the employee officially resigns from the company. That is also the date when the separation takes effect. As the employer, you have to power to decide when the employee’s last day should be. But most companies usually set an employee’s last day in the workplace two weeks after the date of the resignation letter.
Once you’ve completed the document, review it for a bit; check for some errors. After that, you can issue it to the employee and ask him or her to sign it. Everything is then set once the employee has affixed his or her signature.
Yes, some states require employers to issue a separation notice. According to SESCO, these are the states that require companies to give a separation notice to employees:
According to Lawpath, if an employer receives a request to issue a separation notice, he or she must submit it within 14 days. The request could either come from a past employee or a government agency.
Separation is when an employee leaves the company voluntarily due to valid reasons. But it could also be involuntarily if the employee is laid off by the employer because of retrenchment. On other hand, termination is when an employee is being let go by the employer due to incompetence and serious offenses.
Sometimes, it’s tough to deal with employees leaving. But, it is what it is. Employees leave because they want to pursue other things that are best for them. So, ready yourself with several drafts of separation notice documents. Download and use our Sample Separation Notice Templates to make things easier for you.