Your Employee Resigned and Didn’t Work Their Notice – Should You Pay Them?

Image Credit: Flickr Commons, Anchor Editions “Centerville, California. A friend comes to bid a farmer of Japanese ancestry goodbye while awaiting .” . . May 1942

This depends why they didn’t work their notice.

Did you agree to waive the notice requirement?

In the absence of any agreement, an employee who refuses to work the notice period required by their contract of employment will be in breach of contract. In these circumstances, there will be no duty on the employer to pay the employee for any part of the notice period not worked.

What was the reason for their resignation?

If it was a fundamental breach of contract on the part of the employer, the employee would be entitled to leave without notice. Again, the employer would not be obliged to pay for any part of the notice period that had not been worked, although it may be liable for compensation for the breach of contract.

Did the employee have any outstanding holiday or were they sick?

If you have agreed absence for holiday outstanding, then the employee will be entitled to be paid his or her normal contractual level of pay during the notice period. Similarly, if the employee was sick during the notice period and thus unable to come to work, he or she would be entitled to be paid statutory or contractual sick pay in the same way as an employee who had not resigned.

Finally, it is open to the employer and employee to agree mutually to waive the notice period, i.e. to bring forward the employee’s termination date. In these circumstances, the employer should make sure that the employee signs an agreement to this effect so that there can be no claim at a later date for unpaid wages.

If you’d like any advice or help in handling a similar situation for your business, please get in contact with us at [email protected] or call us on 01386 751 740.