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Hi we one of our employees resigned with immediate effect. She has been with the company for more than 4 years.Should she be paid out in full or are we allowed to withhold some money?

We are a non profit organization and our employees all sign a new contract each year.

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Mark Cheong

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First, I'm not an HRO representative.
* Check with your HRO dept. Need to follow Employee Handbook.

*** Following if for information only.***
* In most cases you want to pay out everything. Current pay, vacation (accrued), Sick leave (accrued), Stocks, Bonds, etc. Another words if you intended to fire the employee. What would you pay out to let them go.
* 401K and other retirement funds are usually closed out after the annual accounting. You will need their forwarding address or an account to transfer funds to once all the accounting is done.
* Withholding for outstanding debts; IE tools, equipment, that was issued by the company. These charges should be reflected before the final pay stub to allow the employee to turn in these items.
* You should not hold back any pay that is due. Though you could wait till the next pay period. But most companies will pay out within a 1-3 day period. Sooner the better.
* HRO representative needs to be the last person to see the employee. It may be the same person that did the job interview. They need to find out why the person is quitting. There may be possible "situations" that the HRO is not aware of and needs to be addressed. If there is any indication, the company needs to have a good rapport with the exiting employee. They need to feel "safe" when leaving the company and that at least one person is looking out for them (regardless of circumstances). Suggest that they can call you for reference.
* People make mistakes. It may be the employee, other employees, supervisor, Management, or even a sister company, vendor, customer. You don't know unless you ask around.
* IE; I hired my brother and his friend but both quit in a week. Later (lots later) I found out one of the departments were stealing product. They thought my Brother and he's friend were "spies".
* now days we could have been sued for "Hostile environment" by the two former employees.
* Best to be safe and have a nice talk on exit.
Aloha, ukeboy57

Posted on Aug 28, 2018


STEVE yes that one

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You cant withold anything owed. sick time vacation time etc

Posted on Aug 28, 2018


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