Work ethics: Professional way of leaving a company
At some point during our careers, we all at least once have to send this resignation letter. It could be for a variety of reasons, such as moving to another company, retiring or starting an independent business. Regardless of the reason, a successful, smooth and complete departure from your team is just as important as your successful integration into it. Many will wonder why a voluntary departure should be smooth and marked by professionalism. The reason is directly related to work ethics and the professional profile of the departing employee.
What are the steps that the employee must follow during his/her departure?
Reasonable warning time. It is important to give the employer reasonable advance notice. Ideally it would be even earlier than specified in the contractual obligation. This helps your team recover from your potential loss more easily, with enough time to transfer knowledge/responsibility and hire a replacement. A series of positional people who should be briefed is as follows: the department manager, the HR team and then the team members.
Maintaining your performance during the warning period is important. Abstaining from any activity, undermining team goals and having vast unfinished business certainly does not contribute to building a professional profile. This could possibly be partly justified by the absence of long-term goals in the company and any sign of underperformance can easily be seen as a result of your short term departure.
During the warning period, the employee rightly has no great responsibility and should not take a major role in a new plan. Instead, the only goal should be to record any outstanding issues, complete them and prepare for a smooth exit and replacement.
The aim of the departing employee is to maintain stable relationships with the members of the team he/she is part of. In particular, if the departing employee is part of the company's management, he or she should ensure that his or her replacement can get to know the team members so that he or she can manage and lead them effectively. Concern for the whole team, but also for the department HR είναι να μπορέσουν να καλύψουν με συνέχεια το κενό που θα δημιουργήσει η αποχώρηση του επικεφαλής.
During the briefing of the Department HR, the employee should be prepared to answer questions such as "What are the reasons for leaving?", "What is the reason for dissatisfaction with the company?" and "What could management improve". While it is helpful for the company to point out the disadvantages, it is perfectly legitimate for the employee to avoid relevant discussion if he or she is uncomfortable with it.
During the separation, it is important that the departing employee takes an active interest in the search for a replacement and his/her smooth integration into the company. It is not expected that the replacement will be immediately in a full-time position and will certainly need help and guidance from the predecessor especially in the first period. It is important that the departing employee has left no loose ends and has taken care to leave as smooth and "slick" an environment as possible for the next one.
Potential challenges facing the Department HR during an employee's separation.
Loss of institutional knowledge:
The departure of a stable employee means a potential loss in a wealth of institutional knowledge. Over the years of employment, this employee has likely accumulated a vast amount of organizational insight, including processes, systems, relationships, and historical context. The loss of this knowledge can disrupt workflow and impede the organization's ability to make informed decisions.
Talent drain:
An employee with years of service to the company has likely become an integral part of the fabric of the organization, providing guidance and mentorship to his colleagues. His departure can create a talent gap, leaving a void in team dynamics, leadership and expertise on a range of issues. The loss of this valuable human capital can negatively impact team morale and productivity.
Reduced productivity:
When a key official resigns, it takes time for his or her replacement to become effectively operational. The departure of a permanent employee can disrupt workflows and lead to a temporary reduction in productivity across the organisation. Remaining employees may have to shoulder additional responsibilities until a suitable replacement is found, potentially leading to burnout and reduced performance.
Impact on team dynamics:
Permanent employees often play a crucial role in shaping the dynamics of the team. They can be the connective tissue that holds a team together, fostering collaboration and acting as a stabilizing force in difficult times. Their resignation can disrupt established relationships, create uncertainty and even cause ripples in other teams in the organization.
Negative impact on corporate culture:
A stable employee often embodies the values and culture of the company. His or her departure can be a shock to the organization, causing others to question their loyalty and commitment. This can have a negative impact on employee morale, leading to reduced engagement and potentially increasing the likelihood of further resignations.
Loss of customer relationships:
A stable employee is likely to have built strong relationships with customers over the years. These relationships are based on trust, familiarity and a deep understanding of customer needs. When such an employee leaves, there is a risk that customers may feel upset or even consider taking their business elsewhere, resulting in a potential loss of revenue.
Increased recruitment and training costs:
Finding a suitable replacement for a long-term employee can be a challenge. The hiring process itself is time-consuming and expensive. In addition, training the new hire to match the skills and knowledge possessed by the departing employee requires additional investment. These increased costs can strain the organization's budget and resources.
Impact on employee loyalty:
The departure of a permanent employee can be a shock to the organisation, raising concerns among other employees about their own future in the company. This can lead to increased instability as employees begin to question long-term prospects, job security and overall satisfaction. Efforts to strengthen loyalty may need to be intensified to avoid further friction.
Reduced employee engagement:
When a loyal and trusted colleague leaves, the employees who remain may experience a sense of loss and disengagement. They may question their own commitment to the organization and become less motivated. Rebuilding trust and strengthening employee engagement becomes a critical challenge for the Department HR και τη Διοίκηση.
Organizational reputation:
The resignation of a long-term employee can affect the reputation of the organisation, both internally and externally. Internally, it can lead to skepticism and reduced trust in leadership. Externally, it can be perceived as a sign of instability or issues within the company, potentially affecting the organization's ability to attract and retain top talent and valuable customers.
The resignation of a permanent employee has far-reaching implications that can affect the knowledge base, productivity, team dynamics, company culture, customer relations, recruitment costs, employee retention, engagement and the reputation of an organisation.
As HR professionals, it is important to be proactive in mitigating these risks, developing strong succession plans, and prioritizing employee satisfaction and development to prevent or minimize the negative consequences associated with such resignations.
The departing employee must demonstrate the utmost professionalism and work ethic in order to mitigate as much as possible the negative impact on the organisation from which he or she is leaving.
Unannounced departure of an employee - Greek Law
It often happens that an employee leaves -retires suddenly without any prior notification to the company he/she works for. It is obvious that if the employee in question holds a responsible position in the company, there will certainly be a problem until a suitable replacement is found. How is the employer protected in this case?
Article 4 of Law 2112/1920 stipulates that an employee who is going to leave, resign, i.e. wants to terminate his/her employment contract with the employer, must terminate it before a period of time equal to half of that, which article 1 of the law (2112/1920) stipulates for the employer:
- An employee who has served twelve months to two years must give the employer half a month's notice of termination.
- An employee who has served two years completed up to five years must give his employer one month's notice of termination.
- Υπάλληλος που έχει υπηρετήσει πέντε χρόνια συμπληρωμένα έως δέκα χρόνια, οφείλει να προειδοποιήσει τον εργοδότη του ενάμιση μήνα πριν την καταγγελία.
- An employee who has completed ten years of service up to fifteen years must give his or her employer two months' notice of termination.
- An employee who has served fifteen years completed up to twenty years must give his or her employer two and a half months' notice of termination.
- An employee who has more than twenty years of completed service must give his or her employer three months' notice of termination.
Therefore, if the above deadlines are not met, the departing employee must pay compensation for the period of notice, which cannot exceed the amount corresponding to three months' pay. For the purpose of calculating this compensation, the remuneration for the last month of full-time employment will be taken into account.
The question that arises here is whether the employer can set off its claim against the employee for unannounced departure against wages owed to the employee for salary, vacation and holiday pay, and holiday bonuses.
According to Article 664 CC, the employer cannot set off an outstanding salary against a claim against the employee if the salary is absolutely necessary for the maintenance of the employee and his/her family.
Leave, holiday pay and holiday bonuses are salary benefits and therefore cannot be offset.
It should be noted that it is possible by agreement between the employer and the employee to shorten the statutory period, i.e. if the employee who has been employed for ten years has a statutory two-month notice period before dismissal, the contract may stipulate that the period will be one month. Also, the employer may waive this statutory notice period. So, in the case of voluntary redundancy, the time limits can be agreed differently from the statutory ones.
Elina Karamanou
CEO / Business Consultant
Thanasis Karmiris
Payroll Manager
