Can an employee’s last day of work be different from their last day of employment/on payroll?
Yes, an employee’s last day performing work can be different from their last day of employment/on payroll, although you do not want to extend this for a long period of time (anything more than a few days).
Why would I do this? To remain compliant with final paycheck laws (e.g. your employee’s last day is sooner than you’re able to process their final paycheck).
What are the risks of doing this? The company is still liable so long as the employee is employed, even if they are not working. If you’re considering this option for an employee who is being involuntarily terminated, consider a
Can I keep the employee on payroll instead of offering a severance package?
This increases company liability, and is not recommended. If you choose to extend additional pay or benefits to the employee, do so through a Separation Agreement and Release.
Should I inform the rest of the company each time an employee leaves?
It is not a requirement, but it is recommended to be consistent and treat all employee departures, regardless of the reason, with the same confidentiality and respect. We never recommend disclosing the reason why an employee left, however if the employee is departing voluntarily they may choose to share this themselves. If the employee is departing involuntarily and you’ve chosen to inform the company or a group of employees, keep the message short and concise (e.g. “[Employee Name]’s last day with the company was last Friday. We wish them all the best in their future endeavors. You can reach out to [Manager Name] with any questions”). You may choose not to share each departure with the company as your company grows, however if the employee leaving is a member of the leadership team, or responsible for several important workflows, it may make sense to send out a broader company message.
We were planning to terminate the employee, but they quit. What should we do?
If an employee indicates that they want to quit and you were planning to terminate them, you should allow them to submit their resignation and follow a typical
. When an employee is placed on a performance improvement plan, they may decide to quit rather than completing the PIP. If so, the company may still want to offer the employee a Separation Agreement and Release to mitigate risk, in which case the termination may be considered a mutual separation, wherein both the employee and the company mutually agree to part ways. Work closely with your HR manager to ensure that the appropriate policies and procedures are being followed in this case.
Frequently Asked Questions