more-arw search

Q&A Forum

Pay in Lieu of Notice.

Just curious what various companies do. If an employee of yours resigns and gives notice but management is fine with an earlier final date, do you pay them through their last day per notice or their last day worked? Does it differ for hourly employees vs. salaried employees?


Len Green
Title: Performance Improvement Consultant and E..
Company: Haygarth Consulting LLC
LinkedIn Profile
(Performance Improvement Consultant and ERP Strategist, Haygarth Consulting LLC) |

I think the answer is "check your state labor laws" first.

If I give notice on May 20 to resign in 2 weeks time, and you are happy to let me go now, I think you owe me pay for the 2 weeks anyway, in many states.

Title: CFO
Company: C-Suite Services
LinkedIn Profile
(CFO, C-Suite Services) |

My personal opinions....

FIRST....If it came to this, I usually recommend paying for the notice period (usually 2 weeks?) and not have them report for work. It is usually cheaper than the company calling a lawyer (or time spent by in house counsel) because the employee is threatening to sue. Not even considering the aggravation/stress.

SECOND.... At least in Cali (an at-will state), neither employee NOR employer are required (by law) for the 2 weeks notice. BUT if the company requires a 2 weeks notice from employees, shouldn't the company reciprocate and pay (in this case)?

The.."I can fire you anytime but I require 2 weeks notice if you want to resign" thinking is kind of lopsided don't you think?

THIRD....With the internet and review boards (ex. Glassdoor), one disgruntled employee can tarnish your reputation. THAT is an expensive cost to bear. Better for amicable (all parties happy) separations. Heck, even a simple Facebook post can tarnish the company's reputation.

FOURTH....Having said all these, what does the employment contract / company policy say??

(Finance Director / Controller) |

Thanks Len / Emerson. This is where we are landing also.


Get Free Membership

By signing up, you will receive emails from Proformative regarding Proformative programs, events, community news and activity. You can withdraw your consent at any time. Contact Us.

Business Exchange

Browse the Business Exchange to find information, resources and peer reviews to help you select the right solution for your business.

Learn more

Contribute to Community

If you’re interested in learning more about contributing to your Proformative community, we have many ways for you to get involved. Please email [email protected] to learn more about becoming a speaker or contributing to the blogs/Q&A Forum.