What is the employer’s responsibility when an employee exits?

What is the employer’s responsibility when an employee exits?

Business, Human Resources

Author: Clerice Pillay

When an employee exits an organisation, whether voluntarily or not, it is important for both parties to understand their respective responsibilities. This helps ensure a smooth transition for the employee and protects the employer from any legal issues.

The key responsibilities of the employer include:

  1. Return of company property: Upon termination, the employer is responsible for ensuring that the employee returns all company property, such as keys, equipment, laptop and confidential documents in their possession. Employers should also keep records of the return of company property to avoid any potential legal issues.
  1. Payment of outstanding wages and benefits: Upon termination, the employer is responsible for paying the employee all outstanding monies, including any unused annual leave that is not forfeitable. It is important to ensure that all company property is returned before final payment is made.
  1. Final pay slip: The employer is responsible for providing the employee with their final pay slip which will detail their final payments. This must be done within seven days of their last day of work.
  1. Certificate of service: The employer is required to provide each employee with a certificate in line with the Basic Conditions of Employment. This is not subject to the reason for a person’s termination of employment but is a legal requirement.
  1. UI-19 and salary schedule: Regardless of why an employee is leaving your organization, you are required to provide each employee with a UI-19 and salary schedule.

Although it is not a legal requirement, it is important to consider conducting an exit interview. These have many benefits to an organisation, and contrary to popular belief, are not only beneficial to large corporates.

The role of HR in the exit process is to ensure that the employer is meeting their legal obligations and to assist with the smooth transition of the employee. HR can provide support and guidance to both the employee and the employer during the termination process, or help with the calculations of final pay and benefits and ensure that all necessary documentation is completed and filed.

Should you require assistance with the implementation of an exit process and/or are interested in outsourcing your HR please contact us.