What do I need to know about putting in my resignation?

Resigning from your job can be a stressful thing to do. Maybe you’ve found a better opportunity. Maybe you’re unhappy. Maybe life just needs a change. However, quitting the right way matters. How you exit your current employer says a lot about you professionally, and it can affect your future job prospects.

How should I resign?

When you decide to resign, it’s best to tell your manager first in person or over video call. But the formal resignation should be in writing.  Your resignation letter or email should include a statement that you are resigning, your last working day (based on your notice period), and its nice to include a thank you to your employer for the opportunity.

How much notice do I have to give?

A notice period is how long you must keep working after you say you resign. Every employee’s notice period can be different and your notice period should be stated in your employment contract.  Notice periods can be anything from one week to three months depending on the type of role, your level in the company and the type of contract you are on.  If your contract doesn’t mention notice, and there is no relevant company policy, reasonable notice will apply based on your role and industry.

Depending on what you are doing next, you may find you need to leave sooner than your notice period allows.  You may be able to negotiate a shorter notice with your employer or they may require you to work to the end of your notice period to allow for recruitment for a replacement, sufficient handover or cover of shifts or role requirements.  Don’t just stop working early without your employer’s agreement as you may find yourself in breach of your contract.

Can my employer restrict what I do once I leave?

Many employment agreements include something called a restraint of trade clause. This limits where you can work or what you can do after leaving.  Common types of restraints include: 

• Non‑compete: You can’t work for a competitor for a set period.

• Client‑contact restraint: You can’t contact clients you worked with.

• Location restraint: You can’t work in a certain area.

These restraints may be upheld in New Zealand if they are reasonable. When restraint of trade clauses are disputed, courts will often look at:

• The length of the restriction (e.g., 3 months vs 2 years),

• The type of work you’re barred from,

• Whether the restriction protects a legitimate business interest and

• Whether it unfairly stops you earning a living. 

If you are concerned that your next step might breach a restraint clause, talk to your employer or seek legal advice before you resign.  

What about the handover of my current duties?

Resigning doesn’t mean your work stops immediately. Treat your notice period seriously.  To be fair to your employer, write or update handover notes where applicable explaining your key tasks; participate in training of new staff where required; document key information that your employer will need after you are gone such as passwords, file locations and contacts; and wherever possible wrap up or handover projects.  A smooth handover shows respect. It protects your reputation and could help you get a good reference.

Do I have to return company property?  

Before you leave, you should make sure you pass in all company property that is required to be returned. This might include keys, access cards, technology such as a laptop, phone or tablet, any tools or equipment provided for use on the job, security tokens or badges, company credit cards, and confidential documents.  Employers often have a policy around the return of property but if in doubt, ask your manager or HR for what is required.  If you don’t return property, your employer might choose to withhold your final pay, but this can only happen if it’s lawful and agreed in your employment agreement. If you are concerned, ask for a receipt or confirmation that the property has been returned.  .

What can I expect from my final pay?

On your last day, you should receive all money owed to you. This usually includes:

• Wages up to your last day, 

• Accrued and unused annual leave, 

• Any agreed bonus or commission (if earned), and 

• Any other entitlements in your agreement.  

Your employer should pay you no later than the payday for the period in which you left.  If you think your final pay is wrong, talk to your employer first. If that doesn’t work, seek advice from an expert.

Can I ask for a reference when I leave?

A good reference can help you in your next job. But references must be handled thoughtfully.  You might want to consider asking your manager, someone from the HR team, or someone senior who knows your work.  Not all employers want to provide detailed references on performance or behavior.  In that instance, ask if they can provide confirmation of dates and title. 

Frequently Asked Questions (FAQs)

Do I have to give notice if I’m resigning?

Yes, unless your agreement says otherwise. Usually, you must give the notice period in your contract. If not specified, you must give reasonable notice based on your role and industry.

What if my employer wants me to leave straight away?

Your employer can ask you to go home early. But unless your contract says otherwise, they usually must pay you for the full notice period even if you don’t work it.  

Can my employer stop me from working for someone else?

They can if there’s a restraint of trade clause in your contract, and it’s reasonable. If you’re unsure whether a restraint is enforceable, get advice before starting a new job or business.

What happens to my unused holidays?

Unused annual leave must be paid out when you leave. If you have time‑in‑lieu or other leave, check your employment contract for how it’s handled on exit.

Can my employer withhold my final pay?

Only in very specific situations where your contract allows it and it’s lawful. If your employer withholds pay without agreement, you may have a dispute and should seek legal advice.  

Should I resign by email or letter?

Either is fine but it must be in writing. Email is usually easiest and creates a time-stamped record.

Do I have to tell my employer why I’m leaving?

You don’t have to share details. Keep your resignation statement clear but simple if you prefer privacy.

Leaving a job isn’t just about your last day. It’s about how you leave.  A good exit can boost your reputation. A messy exit can make things hard later. So take time, be prepared, and handle your resignation thoughtfully. 

If you are concerned about conditions in your contract relating to exit, or your employer’s response to your resignation, get in touch for a free consultation.  MathewsWalker.co.nz | 0800 612 355

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Disclaimer: The information provided in this blog is for general informational purposes only and should not be considered legal advice. While we strive to keep the information accurate and up to date, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the blog or the information, products, services, or related graphics contained on the blog for any purpose. Any reliance you place on such information is therefore strictly at your own risk. For specific legal advice tailored to your situation, please contact a qualified legal professional.