In the movies, resignations are often dramatic—a slammed door, a tossed badge and a manager barking, “Clear out your desk!” But in the real world, how you handle an employee’s exit can impact team morale, knowledge transfer and even your employer brand. And these days, with skilled talent in demand, most managers would much rather make the most of an employee’s final two weeks than show them the door too quickly.
Still, no matter how strong your team is, resignations are inevitable. According to research from Robert Half, 29% of U.S. workers plan to look for a new job in the next six months. While 71% say they aren’t actively job hunting, 42% of those respondents are open to new opportunities. That makes it essential for managers to be prepared, legally and logistically.
So it’s important to know what you can require when someone quits, what you can (politely) ask for, what to tell the rest of your staff and how to handle equipment retrieval for remote and hybrid workers.
1. Understanding the legal aspects of employee resignation
Most U.S. states operate under an at-will employment agreement instead of a statutory one. That means there’s no default requirement for employees to be granted notice periods in a dismissal or to give advance notice that they're leaving.
Understanding the rights of an employee after resignation is just as important as knowing your obligations as an employer—especially when it comes to final pay, benefits and contractual terms. Although many contracts contain these requirements, individuals and employers can request new terms once the resignation or termination decision has been made.
As remote and hybrid work models have expanded, legal considerations now often extend across state lines. If an employee works remotely from another state, consult legal counsel to ensure you're complying with applicable labor laws—especially regarding final paychecks, equipment return and any contractual notice requirements.
2. Planning for a successful exit
While managers can require outgoing employees to keep working full steam ahead, employees’ motivation often wanes as they near the finish line. So the time after giving notice is often most effectively used as a handover period and knowledge transfer.
Start by having the departing employee update their job description and create a transition document outlining their current responsibilities, in-progress projects and any critical deadlines. This will help streamline handovers and make it easier for remaining team members or new hires to pick up where the employee left off.
If employees have finished work on their assignments or their presence becomes detrimental to the working environment, you can ask them to leave before the end of their notice period after consulting state laws—or an attorney—to make certain you’ve provided departing employees with all the necessary documentation. In all cases, you’ll still have to pay the employee’s salary for the amount of time stated in their contract.
3. Handling equipment retrieval
This is not a new step—many jobs have long allowed or required staff to keep company equipment off-site. But with the rise of remote and hybrid working, it’s more common than before, so add the following steps for equipment retrieval to your employee resignation process:
Make it easy to return the equipment. Either arrange for the property to be picked up directly or send the employee a prepaid and prelabeled box that can be returned by mail or shipping service.
Check whether state law allows you to deduct the value of any non-returned equipment from the employee’s final paycheck. This should be a last resort, but you and the departing worker need to know if it’s possible.
Check whether any returned equipment is damaged or broken. State law may also allow you to deduct the cost of equipment repair or replacements from the employee’s final paycheck.
In addition to physical assets, ensure the employee's access to digital systems, subscriptions and cloud-based tools is properly deactivated. With many workers now using personal devices to access company systems, IT should confirm that sensitive data has been deleted from those devices, too.
4. Extending the employee resignation notice period
Professional convention has workers give at least a two-week resignation notice period. Still, employees with no defined time frames written into their contracts are free to walk away immediately after giving notice. As an employer, if you need time to delegate duties and recruit a suitable replacement, you can negotiate with employees to extend their tenure at your organization. Clearly, you’ll want to do this as soon as possible. Also, remember that they’re free to decline your request.
5. Handling employees who just want to leave
If employees want to quit immediately after giving notice, you have the right to require them to honor the period dictated by their contract. However, it may be difficult to keep them productive or prevent disruption. In this situation, it’s best to give the employee a cooling-off period to process emotions. Understanding what employees may be feeling when they resign can help you respond with empathy and professionalism. Ask to speak to them the next day and explain why everyone would benefit from them staying through a set notice period.
6. Notifying other staff members
Don’t wait to tell the members of the departing employee’s department about the upcoming exit. You can call a quick meeting to announce that their coworker’s last day is in two weeks, ask for help managing the extra workload before a replacement is found and let them know about any changes in responsibilities—and an estimated timeline—as a result of the employee resignation.
You can notify other employees with a brief email, and if you plan to hold a goodbye party, you can include those details. You should also notify customers or clients who may be affected.
7. Understand why employees are leaving (and use the data)
Exit interviews offer more than closure—they’re a vital tool for uncovering workplace trends. If multiple employees cite burnout, lack of flexibility or career stagnation as reasons for leaving, use that data to evaluate your retention strategies. Proactive improvements can help prevent future resignations and improve engagement across the board.
And don’t wait for a resignation to address underlying issues—knowing the warning signs of employee turnover can help you take action before a top performer walks out the door.
Frequently asked questions about employee resignations
What does an employer/HR need to do when an employee resigns?
Once an employee resigns, HR should request a written notice, confirm the employee’s final work date and begin the offboarding process. We discussed this process at length above, but here’s a quick rundown:
Notify payroll, IT and other relevant departments
Plan the transition of duties
Conduct an exit interview
Coordinate the return of company equipment
What are the rights of employees after resignation?
Employees are entitled to receive their final paycheck, including any unused vacation or PTO, as required by state law or company policy. They may also have rights to continued health coverage under COBRA, access to retirement accounts and a reference upon request. Employers should provide a written summary of these benefits during offboarding and consult state-specific labor laws to ensure full compliance with final pay requirements and benefit obligations.
What is a proper resignation notice period?
The standard notice period is two weeks, but it may vary by role, industry or employment contract. While employees aren’t always legally required to give notice, it’s helpful to set clear expectations during onboarding or in your employee handbook.
Employee resignations are inevitable, but they don’t have to catch you off guard. With the right preparation—knowing your legal obligations, setting clear expectations, and supporting your team through the transition—you can handle departures with professionalism and care. A smooth offboarding process not only protects your operations, it also reinforces your reputation as a great place to work. And remember, a positive departure experience strengthens your employer brand and leaves the door open for a valuable rehire down the line.
