HR For Small Business For Dummies, Australian Edition

Chapter 16

Resignation of Employment

In This Chapter

Providing notice of resignation

Understanding notice period obligations

Calculating payments, tax and superannuation

Finding out why employees are leaving

Please accept my resignation. I don’t care to belong to any club that would accept me as a member.

Groucho Marx

Y ou would think ending the employment relationship would be a simple matter. An employee tells you she’s leaving. She works through the notice period, you agree to let her go immediately or you pay her in lieu of the notice period. Whatever option is chosen, the employment ends and everyone gets on with their working lives. Mostly, the reality does work that way, but you need to be aware of some important rules even within these best-case scenarios — because these rules could cost you money if you don’t observe them.

For example, you need to keep in mind taxation and superannuation considerations when preparing the final payments, and observe various niceties over the remaining period of employment. In this chapter, I explain the requirements and obligations of employees ...