Resignation

Resignation Meaning

Resignation is one of the most common yet sensitive processes in the employee lifecycle. For HR professionals, handling resignations effectively is crucial to maintaining organizational continuity, ensuring compliance, and preserving a positive employer brand.

Whether it's a fresh graduate leaving after a short tenure or a senior executive moving on after years of service, the way an organisation manages the resignation process reflects its professionalism and workplace culture.

The official act of an employee voluntarily deciding to leave their position or job within an organization is known as resignation. It is an employee-initiated exit, typically communicated through a resignation letter to HR or a direct conversation with the reporting manager.

Resignation is often accompanied by a leaving notice, which is the duration an employee agrees to serve after submitting their resignation, as per the company's policy or employment agreement.

Key Elements of a Resignation:

• Voluntary in nature: initiated by the employee
• Formal communication: usually via a resignation letter or email
• Notice period: a set time frame during which the employee continues working post-resignation
• Exit formalities: including clearance, final payment, and documentation

Common Reasons for Resignation:

• Better job opportunity
• Higher education or relocation
• Personal or family reasons
• Career shift or burnout
• Organisational culture mismatch

In every case, HR plays an essential role in ensuring the resignation process is smooth, respectful, and compliant.

Revolutionize your HR management with our intuitive HR software solution

Get Free Demo

How Does an Employee Resign?

An employee usually follows a structured process when deciding to resign. While the exact procedure may vary between organizations, certain steps remain standard across industries.

Step-by-Step Process of Resigning from a Job:

1. Decision and Preparation

The employee evaluates personal and professional reasons for leaving. Once confident, they prepare a resignation letter addressing it to the HR manager or reporting authority.

2. Submitting the Resignation Letter

The employee formally communicates the resignation in writing. A typical resign letter to HR includes:

• Statement of intent to resign
• Proposed last working day
• Gratitude towards the employer
• Offer to assist in the transition

3. Serving the Notice Period

Upon submission, the employee is usually expected to serve a notice period, commonly 30 to 90 days, depending on company policy. The worker is supposed to do the following during this time:

• Continue regular duties
• Transfer knowledge
• Train replacements (if applicable)

4. Exit Interview

Most HR departments conduct an exit interview to understand the reason for resignation, gather feedback, and improve retention strategies.

5. Final Settlement

The HR and payroll team finalizes dues, including

• Salary
• Leave encashment
• Provident fund or gratuity
• Other reimbursements

6. Full and Final Documentation

The employee returns company property (ID card, laptop, etc.) and receives documents like:

• Experience letter
• Relieving letter
• Final payslip

Proper handling of these steps ensures a respectful closure for the employee and the organization.

Resignation Vs Termination

While both resignation and termination result in the end of employment, they differ significantly in terms of intent, process, and perception.

In HR terminology, resignation is generally viewed as a more amicable and less disruptive process compared to termination. However, both require systematic procedures to maintain compliance and ensure smooth offboarding.

How Should an Organization Handle Employee Resignation?

Handling resignations effectively is not just an administrative task it impacts employee morale, knowledge continuity, and brand reputation. Here's how HR teams can ensure a smooth exit process when an employee submits a leaving notice:

1. Acknowledge the Resignation Promptly

Respond to the resignation letter formally and clarify the next steps. HR should confirm:

• The last working day
• Notice period requirements
• Pending tasks or documentation

2. Ensure a Positive Transition

Encourage managers and team leads to support knowledge transfer. Provide guidance to ensure responsibilities are handed over effectively.

3. Conduct an Exit Interview

Use this opportunity to collect feedback. Ask meaningful questions about:

• Reasons for resignation
• Managerial support
• Suggestions for improvement

This can offer valuable insights into employee satisfaction and workplace issues.

4. Coordinate Final Settlement

Make sure the full and final settlement is processed on time. This includes:

• Salary computation till last day
• Leave encashment
• Bonuses (if applicable)
• Reimbursements

You can automate this using Qandle's Exit Management Software.

5. Issue Clear Documentation

Provide timely experience and relieving letters, which employees may need for future employment or visa processing.

6. Protect Company Assets and Data

Ensure that all company-owned property is returned, and revoke access to internal systems after the last working day.

7. Maintain a Cordial Relationship

Always part on good terms. Today's resigning employee might return in the future or recommend your company to others.

Resignation is more than just a formal goodbye; it's a process that, if handled well, can foster goodwill, ensure smooth transitions, and preserve your organization's professional reputation. Whether you're drafting a resignation letter to HR or managing an employee's leaving notice, understanding the nuances of the resignation process is vital for HR success.

Qandle's comprehensive Employee Exit Management System helps you handle resignations, automate final settlements, and generate exit documents all from one platform. Ensure every resignation is processed professionally and efficiently

Start your free trial today!