Employee Resigned? Here's What You Need to Know

So an employee resigned. Now you’re thinking:

Do we need to hire?
Can someone else cover their work?

Obviously, these questions matter, but there are a few things that need attention before you even think about posting a job opening.

The resignation itself is often the easy part. It's everything that comes after that you need to be organized about.

Start With Documentation 

If an employee tells you they’re resigning, ask them to send a quick email to confirm it.

It doesn’t have to be a formal letter, you just will want it for your records.

People forget dates. Managers remember conversations differently. Employees can sometimes change their minds.

A simple email confirming the resignation and last day of work clears up a lot of potential confusion.

Don't Wait Until Their Last Week!

You might not realize the day-to-day ‘things’ this person was handling.

Customer relationships, recurring tasks, reports, passwords, vendor contacts, spreadsheets that only one person knows how to use. Don’t let these surface after they are already gone.

Spend some time getting this information from them so it doesn’t leave with them.

Payroll Deserves a Second Look

This is usually where we see employers get surprised.

Not because payroll is complicated, but because most people assume the final paycheck is just another paycheck.

Sometimes it is. Sometimes it isn't.

There may be commissions that haven't been paid yet. Expense reimbursements waiting for approval. PTO balances that need to be reviewed. 

All of these details matter.

For employers in New York and New Jersey, final wages are generally due by the next regular payday after the employee leaves. Missed deadlines and payroll mistakes can create bigger headaches than the resignation itself.

If you have employees outside of NY and NJ, check out Findlaw’s final paycheck law by state.

Before payroll is processed, it's worth taking a few extra minutes to review everything that's owed.

PTO Policies Matter

Employers ask about PTO almost every time someone leaves.

The answer is usually sitting in your handbook.

Many people assume unused PTO automatically gets paid out. Others assume it never does.

Neither assumption is always correct.

New York generally allows employers to follow their written PTO policy. New Jersey does not require PTO payout unless the employer has promised it through a policy or agreement.

Want more info? Check out our Guide to Paid Time Off here.

This is one of those situations where consistency matters. Whatever your policy says, follow it.

Wrap Up the Admin Side

Once payroll is handled, there are still a few things you should remember to do.

Collect company property. Remove system access. Review benefits.

Most employees leave on good terms and none of this becomes an issue.

But when something gets missed, it tends to be something small. A laptop that never comes back. An email account that stays active. A company credit card that nobody remembered to cancel.

A simple off-boarding checklist can prevent most of these problems.

✅ Employee Resignation Checklist

• Receive the resignation in writing
• Confirm the employee's last day
• Transition responsibilities and projects
• Review final pay
• Check PTO balances and company policy
• Collect company property
• Remove all system & software access
• Review benefits
• Document the separation
• Gather honest feedback with an exit interview

Frequently Asked Questions (FAQs) for Employee Resignation

🔹 Do employees have to give two weeks’ notice before leaving?

Usually no. Unless there's an employment agreement that requires notice, employees can generally resign whenever they choose.

🔹 Can I make an employee's resignation effective immediately?

Yes, in most cases you can. you can. In most states, employment is at-will and you can choose to let them go the same day. Just remember that ending employment earlier than expected can create other considerations, including unemployment claims.

Read more about letting an employee go the same day they give notice here.

🔹 Can an employee collect unemployment if they quit?

For the most part, no. They likely will not be eligible. However, there are a few exceptions based on the reason for their resignation.

Learn more about how unemployment tax works and what makes someone eligible for unemployment in New York State.

🔹 What if an employee quits without notice?

This unfortunately happens more often than you’d think. But at-will goes both ways. Unless it’s stated in their contract, legally they do not need to give you notice.

That said, the off-boarding process stays mostly the same.

🔹

Can I deduct the cost of unreturned equipment from a final paycheck?

Not automatically. Many states have strict rules around paycheck deductions. For example, New York’s FARE Grant regulates what you can deduct and you cannot make deductions from unreturned equipment.

Before deducting any amount from a final paycheck, look into the rules for each state.

🔹 What if an employee changes their mind?

Employers are generally not required to allow an employee to withdraw a resignation. Whether to do so is a personal business decision.

The Resignation Is Usually Not the Problem

Most employee resignations are fairly straightforward.

What creates problems are the details that get overlooked afterward.

A missed commission payment. A PTO balance that wasn't reviewed. Access that was never removed. A final paycheck that went out incorrectly.

The employers who handle resignations best are usually the ones with a process in place long before they need it.

This article is intended for informational purposes only and should not be considered tax or legal advice. Employers and employees should consult a qualified tax professional regarding their specific situations.