I’m the newly hired human resource (HR) manager of a medium-sized enterprise with a high attrition rate. Our problem involves resigned workers who simply stop showing up as soon as they get a new job elsewhere. What’s the best solution for this issue? — Pearly White.
You might find it hard to believe, but many companies, especially the big ones, don’t bother with this issue because the damage done by resigning employees is too insignificant. They would rather focus their attention on hiring and training the replacements right away. If not, they simply don’t fill the vacant position.
However, with that kind of come-what-may attitude, many don’t realize they’re encouraging people to resign without following correct procedure.
When a worker resigns, that person must file a written intent addressed to their direct boss, with a copy furnished to the HR department. All resigning employees, regardless of their employment status, whether regular, probationary, or subject to project employment, must give at least 30 days’ advance notice.
This is required by Article 300 of the Labor Code of the Philippines. It is to allow the employer to hire and train replacements. Even if the employer decides not to hire replacements, the law requires resigning workers to give 30 days’ notice.
The objective of this law is to ensure a smooth transition, including the proper turnover of company equipment, records, tools, and even the employee identification card to management. This is a basic requirement so that an organization can issue a clearance and require resigned workers to sign a quit claim agreement.
If necessary, the resigned workers may be requested to train their replacements. I would not recommend doing this as we don’t want the new workers to be badly influenced and demotivated if they come in contact with some disgruntled resignees.
SOLUTIONSHowever, some employers would object to the disrespect manifested by workers who simply disappear. That’s the law of supply and demand for you. Sometimes, unprincipled employers accept new employees even without clearance from their previous employers.
To solve this issue, I’m recommending two solutions — preventive and corrective approaches that employers can apply right away:
The preventive approach. This requires the issuance of a clearly-worded circular reminding all employees to strictly observe the requirements of Article 300 of the Labor Code. Let the people understand that the organization will not allow resignations without at least 30 days’ notice. Of course, an employer can waive this right, if it’s more practical and in their general interest, such as when sabotage or theft of trade secrets are a concern.
Also, resigned workers who do not comply may be charged with absence without leave in accordance with the company’s code of conduct. Again, this can be waived by management if it’s too troublesome. In addition, the worker could be liable for damages.
The damages could include monetary losses arising from customer complaints, recurring overtime premiums paid to current employees, training of new employees, lost or unreturned equipment (like a laptop or mobile phone), and other related expenses.
Also, payment of terminal pay may be withheld to answer for damages.
The corrective approach. Make an inventory of all workers who resigned without giving 30 days’ notice. If the case is very recent, you may also file a case for AWOL in compliance with the employer’s code of conduct.
If a case is old, say from four months to over one year, AWOL proceedings may no longer apply as the employer may have acted too late and perceived to have slept on its rights.
Consult all the bosses involved to get the complete picture. Put together a statement of all liabilities of each resigned worker with a detailed computation of all liabilities.
Then write a demand letter and send it to the resigned employee’s last known address. Request the person to settle the damage within 30 days. If there’s no reply, send another letter with a warning that the organization is ready to bring the matter to court. No, you don’t have to hire a lawyer to do that.
All you have to do is file a case before a small claims court that accepts cases valued at not more than $6,800. In addition, employers must pay a filing fee. The lowest is $30 for claims for not more than $1,500 and up to $100 for those with numerous cases.
In conclusion, don’t ignore cases of resigned workers not following the 30-day notice rule. If you do that, sooner or later, violators could re-emerge to damage everything you’ve built.
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