Before we move on to check these 7 things before submitting Resignation Letter we need to recall that many a times employees find themselves in soup, due to mistakes they made before submitting their resignation letter. This article covers 7 important things one must check before submitting Resignation Letter. These are the most important points one must carefully evaluate before submitting resignation letter.
Before submitting resignation letter : Get an offer in hand
Before submitting resignation letter, you must have a clear plan for your next move. Many a times people resign from their jobs, because of work related stress or simply because they are not happy with it, believing that they will get a better job soon. while some of those do land up better jobs, but a lot of those who quit without a job in hand struggle in managing finances and have trouble in getting the next job. Remember recruiters mostly favours people who are already working over those who are jobless, hence in general your chances of getting the desired job are always higher while you are working as compared to when you are jobless.
Before submitting resignation letter, ideally you must have a firm written offer for another job. Don’t jump to submit resignation based on a verbal offer or an assurance of an offer or just with the hope that you have many interviews lined up.
Before submitting resignation letter : Do due diligence on your next job.
Before submitting resignation letter, you must do a due diligence about your new employer. Many a times candidates discover negative points about the new company or the new job after joining. While it is expected that you cannot find everything about the new job and the work environment beforehand but you must speak to couple of current and ex-employees of the company before joining. Most of the time, important things like the financial stability / performance of the company can be easily checked with a basic internet research. In the uncertain world of today we regularly come across cases where companies undergo cost cutting (layoffs) and bankruptcies and mostly they ask the newest employees to go first.
Before submitting resignation letter : Prepare for next 3-6 months
Before submitting resignation letter, you must spend time in planning your financials, while you transition from your current to next job. In many companies, once you submit resignation letter your salary payout happens with full & final settlement (while this may vary with the local laws) but still you must be prepared financially to take care of your commitments after submitting your resignation. Similarly processing of salary in the new job might take time, I have personally seen cases specially for expats where the salary payouts in foreign exchange gets delayed due to compliance issues and the resultant problem that employee faces till he receives his salary from new employer. in few unfortunate circumstances, there are incidents where people fail to settle down in new jobs and they quit within first month. Therefore any unexpected issues can happen not just with your current employer but also with the new one. and one must be prepared to take care of all contingencies before submitting resignation.
Before submitting resignation letter : Check terms of employment contract
Before submitting resignation letter, you must check your employment contract. Very often we forget the terms and conditions of employment contract that we signed up when taking or during the employment, specially one must check the notice period that has to be given, if there are any clauses relating to joining competitors or any other conditions which could be in conflict with the next job assignment.
Before submitting resignation letter : Check if resignation will lead to any financial liabilities like clawbacks
Before submitting resignation letter, you must check about possible payouts that might arise. At times employment contracts contain terms and conditions which results into chargeback on employees if they quit (or they do not complete the necessary conditions). These could be like some long term benefits which are given in advance in anticipation of employee completing some specified tenure and in the event employee leaves early, he/she is liable to pay back the amount. Similarly there could be expensive training assignments for which the company might have spent on employee and in case the employee leaves earlier than anticipated, he/she may be asked to pay for the training expenses.
Before submitting resignation letter: Check impact on Bonus / ESOP
Before submitting resignation letter, you must check the rules governing your bonus payouts and other benefits like ESOP. There have been cases where after submitting resignation people get to know that they will not be eligible for bonus payout.
With this we have covered 5 points from our list of the check these 7 things before submitting Resignation Letter, the next one is not applicable to everyone but to some specific cases.
Before submitting resignation letter : Check your tax liability
Before submitting resignation letter, you must check the impact it will have on your tax planning. For instance if you are an expat or working on overseas work visa, the tax rules might change depending on duration of work / stay.
Now we have already covered 6 points from our list of check these 7 things before submitting Resignation Letter, the next one is the last but a very important one.
Before submitting resignation – Discuss with your reporting manager
Before submitting resignation letter, (ideally) you must have a conversation with your reporting manager. Most employees when quitting forget that they need to maintain good relations even with ex-bosses, old colleagues and ex-employers. You would not realize but these old relations are of immense value in future and must be carefully nurtured and cultivated. Therefore before you submit resignation, take a time with your boss and discuss it out with him/her before shooting off that email.
Check these 7 Things Before submitting resignation letter, in a nut shell are :
- Have a written confirmed offer in hand for another job
- Do some background check about the company where you are going to join
- Prepare yourself financially for next 3-6 months while you transition from your current job to the next
- Check your employment contract terms & conditions like – notice period, check if their are any bonds that have to be served, clawbacks / financial penalties if any
- Check your upcoming ESOP / Bonus payouts
- Check your tax liability with new job
- Discuss with to your reporting manager
