Resigning from your job is a big step, and it’s essential to understand your rights and responsibilities when it comes to leaving your employment. New Zealand employment law provides clear guidance on what is expected of employees and employers during and after the resignation process. Let’s break it down.
Your Obligations After Resigning
Providing the Required Notice
Your employment agreement will typically specify how much notice you need to give before leaving. Common notice periods are one to four weeks, but this can vary depending on the role or industry. If you fail to give the agreed notice, your employer could deduct the equivalent of your notice period from your final pay, but only if this is expressly allowed in your employment agreement.
Performing Duties During Your Notice Period
You are expected to continue working as usual during your notice period unless your employer explicitly releases you from this obligation. Walking out without working your notice could be viewed as a breach of contract, and it may affect your final pay or reference.
Returning Company Property
You must return any company property, such as laptops, uniforms, or keys, by your last day of employment. Failing to return these could result in deductions from your final pay (if outlined in your agreement).
Respecting Confidentiality
Even after you leave, you remain bound by any confidentiality or non-disclosure agreements. Sharing sensitive information about your employer, clients, or business operations could lead to legal action.
Handling Final Pay and Entitlements
While it’s your employer’s responsibility to calculate and pay your final wages, you should ensure you’ve claimed any outstanding entitlements, like unpaid leave or expense claims. Keep a copy of your resignation letter for your records.
Your Employer’s Obligations After You Resign
Resignation isn’t just about what you need to do. Employers also have responsibilities to fulfil when you leave:
Honoring Your Final Pay
Your employer must pay your final wages, including:
Any outstanding wages or salary.
Accrued but unused annual leave.
Any other contractual entitlements, such as commission payments.
Your final pay should be processed on your regular payday unless otherwise agreed.
Keeping Employment Records
Employers must retain your employment records, including details about your pay and entitlements, for six years. These records can be useful if disputes arise.
Providing a Certificate of Service
While not legally required, it’s a good practice for employers to provide a certificate of service upon request. This document confirms your dates of employment and role but does not need to include performance details.
Ensuring a Safe Transition
Employers should maintain professionalism during the resignation process. This includes avoiding actions like withholding your pay without lawful reason or making derogatory comments about you to colleagues or future employers.
Managing Restraint of Trade Agreements
If your employment agreement includes a restraint of trade clause, your employer may seek to enforce it after you leave. However, these clauses must be reasonable in scope (e.g., duration, location, and industry) to be enforceable.
Resolving Issues After Resignation
If problems arise during or after your resignation, here’s what you can do:
Unpaid Final Pay or Entitlements: Start by raising the issue informally with your employer. If this doesn’t resolve the issue, you can file a claim with the Employment Relations Authority (ERA).
Disputes Over Confidentiality or Restraints: If your employer claims you’ve breached confidentiality or a restraint of trade agreement, seek legal advice. Remember, these clauses are only enforceable if they are fair and reasonable.
Unfair Treatment or Retaliation: If you feel you’ve been unfairly treated after resigning, this may constitute a personal grievance. You generally have 90 days from the date of the alleged unfair treatment to raise this with your employer.
Resignation doesn’t end your obligations—your notice period, confidentiality, and return of property are crucial steps. Your employer must process your final pay correctly and treat you fairly during the transition. Know your rights: if there are disputes, there are legal avenues to resolve them. If you need help, talk to a professional. mathewswalker.co.nz | 0800 612 355
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.
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