ESG republic HR, Payroll, Benefits, and Workers' Comp. Blog

"I Quit This Job!", What Every Employer Doesn't Want To Hear

 

Why do employers need a letter of resignation from an employee who is quitting?

A letter of resignation is needed for many reasons. One reason is unemployment claims. If an employee quits and does not provide a letter of resignation, then the employee has the ability to change their reason for quitting when they file an unemployment claim and mostly like win. The inconsistent reason for quitting can result in the employee winning the claim and be awarded benefits.
 
There are certain circumstances when an employee can quit  with “good cause” and still be eligible for unemployment. An employee will likely be awarded unemployment benefits if:
 

 

• Working conditions were detrimental to their health and safety. The work was making them physically ill.
• The employee had to follow a spouse out of town for a job.
• The employee needed to take care of a dependent child. 

Above are just a few reasons for a quit with “good cause” attributable to employment but these items need to be documented as the final reason for leaving the job. Whether these statements are true or not, the employer needs the documentation from the employee for effective control of unwarranted claims.

How can an employer protect themselves against false unemployment claims?

There are two ways that an employer can protect their company.

 

1. Documentation. An employer must document the history of performance of an employee. The documentation should be kept in their employee file and reviewed periodically to ensure all matters have been addressed. The resignation should also be included in the employee file.
2. Hire an HR Outsourcing company. ESG republic, which is an HR Outsourcing company, helps our client’s everyday with employee matters. We provide the assistance with the documentation of each employee. We handle the termination process by visiting on site, on the phone, or having the employee visit our corporate office. When the unemployment claim comes in we attend the hearing with the documentation to support our client against the claim. This gives our clients the security in knowing they have a team of experts helping to control costs and employee matters. 

Whether you use an HR Outsourcing company or do it yourself, make sure you have your employee give you a reason for their resignation. This could save you from an unwanted unemployment claim.