Resignations: What To Do And What To Pay?

We have been receiving a number of calls asking what a business should do in the event an employee resigns. Sometimes it can come as a shock, but it is important that businesses know what the requirements are and what documents should be completed for resigning employees. 

How should the employee advise they are resigning? 

Whenever an employee resigns, it is ideal for the employee to put it in writing, stating the position they have resigned from and when they propose their final date of employment to be.  

If the employee verbally resigns, the employer should put it in writing (i.e. via an email) outlining their acceptance and acknowledgment of the employee's resignation, and the agreed end date of employment. The correspondence should clearly state all of these terms. 

How much notice must the employee provide? 

The employee must give the employer notice of their resignation in accordance with either: 

• the below table as per the relevant Award; or  
• in accordance with the employment contract if the contract permits for a longer period of notice 

For Plumbing employees employed on a weekly hire basis and clerical employees, the minimum notice period is: 

For Plumbing employees employed on a daily hire basis, the minimum notice period is: 

• One day’s notice 

What to do if the employee doesn’t provide the relevant notice period? 

If an employee, who is at least 18 years old, does not give the period of notice required (as per above Award provisions), then the employer may deduct from the wages due to the employee an amount that is no more than one week’s wage. 

The employer will still need to pay the employee any untaken annual leave (and relevant annual leave loading if payable at the time of taking the leave) or other entitlements (such as RDO and long service leave if applicable) owing to the employee. 

The employer cannot withhold the notice period that the employee should have provided from their entitlements owing.  

Additionally, if the employee who resigns is covered by the Plumbing and Fire Sprinklers Award 2020 and has been employed for 12 months or more, they may be entitled to the  Industry Specific Redundancy Scheme.  

When is the last day of employment?  

It is important to note that when it comes to calculating accruing leave entitlements, the last day of employment is the final date of employment according to the notice. For example: if an employee resigned on Monday, provided one week’s notice, and continued working up until Friday, then leave entitlements would accrue up until the end of Friday, not the Monday when the employee provided their resignation. 

For further information relating to resignations or other employment queries, please contact our HR team on 07 3273 0800.