A resignation occurs where an employee submits a notice, verbal or otherwise, to their employer that they are resigning from their position with that employer, thereby terminating the contract of employment. It is always disappointing to lose good people but it is also part and parcel of running a business. It is important wherever possible to treat a departing employee well so as to avoid any reputational damage or negative talk whilst they are working out their notice or once they have left.
Equally it is always important to establish why an employee is leaving to check that there are no deeper problems within the organisation which could be nipped in the bud or resolved before they get out of hand. Also it is essential to ensure the resignation does not mask a deeper grievance which could lead to a future claim against the company. Thus employers should always ask employees to set out their resignation in writing and should seek to introduce practices such as ‘Exit Interviews’.