Graceful Exit

When a key employee decides to leave a company to pursue other goals or employment, it sets forth a chain of events that not only affects his or her life but also the business operations of the company that he or she is leaving. That is why it is critical for both employers and employees to make the exit process as smooth as possible.

See, leaving a company that you’ve been a part of is difficult for most people. Letting go of employees is also one of the saddest moments for employers. This is where a lot of emotions, both positive and negative, happen. If done poorly and recklessly, it can lead to team morale issues or worse, legal problems---something nobody wants.

Years ago, when my partners and I started our educational company, we didn’t have a system for dealing with such eventualities. Every time we let go of an employee, our operations would get hampered and emotions would run high. So I took on the reigns, made HR a priority and created our very own Operations Manual for Human Resources.

The result of this effort is priceless. We now have an efficient HR system that guides our people through the many procedures and phases of employment. It allows us to welcome new employees, coach them to become productive team members and help them grow with the company. In instances when an employee needs to leave, our current system is also set up to provide a harmonious and graceful exit.

In the interest of guiding both employers and employees through this difficult phase, let me share with you the general exit process that many companies follow:

RESIGNATION

When an employee voluntarily resigns from a company, it is customary to submit a formal resignation letter. Upon receipt of the letter, the boss discusses the matter with the employee and decides whether to accept the resignation or negotiate other terms. If the boss accepts the resignation, the HR head is notified and the paperwork process begins. A 30-day grace period is usually practiced to allow for proper turnover and clearance. However, a shorter grace period may be granted at the discretion of the Management Team.

The usual documents that are commonly used are turnover checklists to aid you in proper turnover, exit interview survey to document the reason for your resignation, clearance form and certificate to ensure that you have no pending accounts and assignments with the company. Once you have been cleared, you will be given your last pay by your company. It is important to keep a copy of your Clearance Certificate or request for a Certificate of Employment as your next employer may require you to present one.

TERMINATION

Meanwhile, an employee may also be terminated due to lawful causes, just causes or authorized causes. Lawful causes are acts done by an employee that are not in accordance with the law. Just causes are acts done by an employee that are not in accordance with the company’s policies after sufficient warnings have been provided. Authorized causes are instances where the company has to terminate employment due to closure of the company, lingering illness of an employee or reduction of staff. Separation pay is usually given for authorized causes that involve illness of an employee and reduction of staff.

The usual documents that are commonly used are termination letters, notices and reports, turnover checklists, exit interview surveys, clearance forms and certificates. For authorized causes, HR are advised to submit letters and notices to the Department of Labor and Employment (DOLE).

EXIT GRACEFULLY

Whether you are an employer or an employee, it is critical for the health of your company as well as your career to make the exit process as smooth as possible.

As an employer, I’ve learned that it is definitely a lot better to send off your departing employees in a positive tone and to remove the drama from it all. Having an efficient HR system allows you to do just that. It helps you give goodwill.

As an employee, I’ve learned that it is in your best interest to leave with your reputation intact. Your relationship with your previous employer doesn’t end just because you left. It just simply changed. It is a true joy to be able to still communicate with people you have previously worked with and to be regarded in a good light. So exit gracefully, leave a good mark and keep in touch.

READER HELPLINE:

“HELP! MY PREVIOUS COMPANY WON’T GIVE ME MY BACK PAY!”

Hi! My Name is Chase. It's been 5 months already since I got terminated from my previous company. And, until now they're not yet releasing my back pay. I'm just wondering if I can do something legal about it, because every time I ask someone in the human resource department, their answer is always the same - they have no idea when they can release my back pay.

MY ADVICE: Before seeking legal means, do the practical steps first. Gather all employment documents that you have like payslips, clearance and certificate of employment. Send a letter to both the President and the HR manager explaining the situation and requesting that they release your back pay within 1 week from date of receipt. This will give them the opportunity to respond and correct the issue. Make an extra copy of that letter for yourself, have them sign and receive it. This serves as your evidence that you have given them due notice in writing. Follow up after a week. If they do not respond and still deny you your back pay, then you can take legal action because the Labor Code of the Philippines stipulates that it is unlawful for any person, directly or indirectly, to withhold any amount from the wages of a worker. For further questions and assistance, you can also contact the Department of Labor and Employment at the DOLE HOTLINE: (632)5278000 or through their website www.dole.gov.ph.


Jhoanna O. Gan-So is president of Businessmaker Academy and managing director for HR Club Philippines. Her company will be holding a seminar on Compensation and Benefits Management on October 21 (Wed), as well as, Labor Law and Relations on November 14 & 21 (Sat). Her company and team of HR consultants also offer consultancy services to help companies develop an efficient and practical HR System. To know more, you may visit www.businessmaker-academy.com and www.hrclubphilippines.com or call (632)6874645. You may email your comments and questions to: worklife@businessmaker-academy.com