Workplace ethics: Professional way of leaving a company

At some point during our careers, we all, at least once, have to send this letter of resignation. It could be for various reasons, such as moving to another company, retirement or starting independent business activity. 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 characterised by professionalism. The reason is directly linked to professional ethics and to shaping the professional profile of the employee who is leaving.

What steps should the employee follow during their departure?

Reasonable notice period. It is important that the employer is given reasonable notice in advance. Ideally, even earlier than what is stipulated in the contractual obligation. This helps your team recover from your possible loss more easily, having enough time to transfer knowledge/responsibility and recruit a replacement. The order of persons who should be informed is as follows: the department manager, the HR team and then the team members.

Maintaining your performance during the notice period is important. Refraining from any activity, undermining the team’s goals and leaving endless pending matters certainly do not contribute to creating a professional profile. This could perhaps be justified in part by the absence of long-term goals in the company and any sign of underperformance may easily appear as a result of your imminent departure.

During the notice period, the employee is rightly not assigned any major responsibility and should not take on an important role in any new plan. On the contrary, the only aim should be to record any pending matters, 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 in which they participate. In particular, if the departing employee belongs to the company’s management, they should ensure that their replacement is able to “learn” the team members so as to be able to manage and guide them effectively. It is the concern of the whole team, as well as of the HR department, to be able to cover with continuity the gap created by the departure of the leader.

During the HR Department briefing, the employee should be ready 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?”. Although it is useful for the company to identify shortcomings, it is perfectly acceptable for the employee to avoid the relevant discussion if they do not feel comfortable with it.

During the departure, it is important for the departing employee to show active interest in finding a replacement and ensuring their smooth integration into the company. It is not expected that the replacement will be immediately fully operational, and they will certainly need help and guidance from the predecessor, especially in the first period. It is important that the departing employee has not left any pending matters and has taken care to leave as smooth and “smooth” an environment as possible for the next person.

Potential challenges faced by the HR Department during the departure of an employee.

Loss of institutional knowledge:

The departure of a long-standing employee means a potential loss of a wealth of institutional knowledge. Over the years of employment, this employee has probably accumulated vast organisational insight, including procedures, systems, relationships and historical context. Losing this knowledge can disrupt workflow and hinder the organisation’s ability to make informed decisions.

Talent leakage:

An employee with many years of service in the company has probably become an integral part of the fabric of the organisation, providing guidance and mentorship to colleagues. Their 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 affect team morale and productivity.

Reduced productivity:

When a key employee resigns, it takes time for them to be effectively replaced in operational terms. The departure of a long-standing employee can disrupt workflows and lead to a temporary reduction in productivity across the organisation. The remaining employees may need to take on additional responsibilities until the right replacement is found, which may lead to exhaustion and reduced performance.

Impact on team dynamics:

Permanent employees often play a critical role in shaping team dynamics. They may be the glue that keeps a team together, encouraging collaboration and acting as a stabilising force in difficult times. Their resignation can disrupt established relationships, create uncertainty and even cause ripple effects in other teams in the organisation.

Negative impact on corporate culture:

A long-standing employee often embodies the company’s values and culture. Their departure can shock the organisation, causing others to question their own 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 long-standing 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 customers’ 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 possible loss of revenue.

Increased recruitment and training costs:

Finding a suitable replacement for a long-serving employee can be a challenge. The recruitment process itself is time-consuming and costly. In addition, training the new hire so that they match the skills and knowledge held by the departing employee requires further investment. These increased costs can burden the organisation’s budget and resources.

Effects on employee loyalty:

The departure of a permanent employee can shock 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 their long-term prospects, job security and overall satisfaction. Efforts to strengthen loyalty may need to intensify to prevent 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 organisation and become less motivated. Rebuilding trust and strengthening employee engagement becomes a critical challenge for the HR Department and Management.

Organisational reputation:

The resignation of a long-serving employee can affect the organisation’s reputation, both internally and externally. Internally, it may lead to scepticism and reduced trust in leadership. Externally, it may be perceived as a sign of instability or issues within the company, potentially affecting the organisation’s ability to attract and retain top talent and valuable customers.

The resignation of a permanent employee has extensive repercussions that can affect an organisation’s knowledge base, productivity, team dynamics, corporate culture, customer relations, recruitment costs, employee retention, engagement and reputation.

As HR professionals, it is important to be proactive in mitigating these risks, developing robust succession plans and prioritising employee satisfaction and development in order to prevent or minimise the negative consequences associated with such resignations.

The departing employee him- or herself must demonstrate the utmost professionalism and work ethic, so that the negative impact on the organisation from which they are leaving can be mitigated as far as possible.

Unannounced departure of an employee – Greek Legislation

It often happens that an employee leaves - resigns suddenly without any prior notice to the business where they work. It is clear that if that employee holds a responsible position in the business, a problem will certainly arise until a suitable replacement is found. How is the employer protected in this case?

Under Article 4 of Law 2112/1920, it is provided that the employee who is about to leave, resign, that is, who wishes to terminate their employment contract with the employer, must give notice before a period equal to half of that laid down by Article 1 of the law (2112/1920) for the employer:

An employee who has served twelve months up to two years must give their employer half a month’s notice before termination.

An employee who has served two completed years up to five years must give their employer one month’s notice before termination.

An employee who has served five completed years up to ten years must give their employer one and a half months’ notice before termination.

An employee who has served ten completed years up to fifteen years must give their employer two months’ notice before termination.

An employee who has served fifteen completed years up to twenty years must give their employer two and a half months’ notice before termination.

An employee who has served more than twenty completed years must give their employer three months’ notice before termination.

If the above deadlines are not observed, the departing employee shall owe, by way of compensation, the earnings for the notice period, which may not exceed the amount corresponding to earnings for three months. For the calculation of this compensation, the earnings of the last working month under full-time employment shall be taken into account.

The question arising here is whether the employer may set off their claim against the employee due to departure without notice against wages, leave and holiday allowance, and holiday bonuses owed to the employee.

According to Article 664 of the Civil Code, the employer may not set off wages owed against a claim against the employee, provided that such wages are absolutely necessary for the maintenance of the employee and their family.

Leave, holiday allowance and holiday bonuses are wage-related benefits and therefore set-off is not permitted.

It should be noted that it is possible, by agreement between employer and employee, to shorten the statutory notice period, that is, if an employee with ten years’ service has by law a notice period of two months before dismissal, the contract may provide that the period will be one month. Also, the employer may waive this statutory notice period. Therefore, in the case of voluntary departure, the periods may be agreed differently from those provided for by law.

Thanasis Karmiris

Payroll Manager