Resignation: Overview, definition and example
What is resignation?
Resignation refers to the voluntary act of an employee or officer deciding to leave or terminate their position within a company or organization. This can be done for various reasons, such as personal choice, career changes, or retirement. In a contractual context, a resignation clause outlines the conditions, procedures, and any required notice periods for an employee or officer to officially resign from their role. It may also specify the consequences or obligations that arise upon resignation, such as returning company property or fulfilling any post-resignation non-compete agreements.
Why is resignation important?
Resignation is important because it establishes a formal and professional way for individuals to leave a company, ensuring that both the departing employee and the employer are clear about their rights and obligations. A resignation clause helps manage expectations by defining the process, notice periods, and potential ramifications for resigning, ensuring that the departure is smooth and organized for both parties.
For businesses, a clear resignation policy is essential for workforce planning, especially when key employees or officers decide to leave. For employees, understanding the resignation process ensures that they comply with any contractual obligations and helps avoid misunderstandings or disputes.
Understanding resignation through an example
An employee of a company decides to resign from their position as a marketing manager. According to the resignation clause in their employment contract, they are required to give 30 days' notice before leaving the company. The employee submits their resignation letter, and during the notice period, they assist with the transition and ensure all company property is returned before their departure.
An example of a resignation clause
Here’s how a resignation clause might appear in an employment contract:
“The Employee may resign from their position at any time by providing the Company with no less than 30 days' written notice. During the notice period, the Employee agrees to continue performing their duties in good faith and assist with the transition of responsibilities. Upon resignation, the Employee agrees to return all company property and comply with any post-employment obligations outlined in this Agreement, including confidentiality and non-compete provisions.”
Conclusion
Resignation is a key part of the employment relationship, allowing employees to voluntarily leave their roles while ensuring that both the employer and employee understand the terms of the departure. A well-drafted resignation clause helps set clear expectations, outlines necessary steps, and protects both parties’ interests. Whether it’s an employee transitioning to a new opportunity or retiring, a clear resignation process ensures an orderly and professional exit.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.