Q & A: What Are the Pay Requirements When Accepting a Resignation Early?

In February 11, 2016
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If an employee gives their two weeks’ notice, but the manager decides to let them go immediately. Should they be paid for the two weeks that they had planned to work? What are the requirements here?

 

As long as you don’t have an employment contract with the employee, a collective bargaining agreement that applies to the employee, or a handbook policy that requires a certain period of notice, you may opt to accept their resignation early.

You do not have to pay the employee for the portion of the notice period during which they performed no work. So if they were a non-exempt (overtime-eligible) employee, you simply need to pay them for all time worked. And if they were an exempt employee, you only need to pay them their regular salary through their last day worked.

A final note: terminating the employee early without providing pay through the unworked notice period is legal, but it may affect the employee’s unemployment eligibility. The company will essentially be turning a voluntary resignation into an involuntary termination. Therefore, they may become eligible for some unemployment benefits.

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