Q: One of my employees has given notice to resign before going on a pre-booked four week holiday. What should I do?
A: Employees who resign without any warning, or any previous signs of concerns with their role, can take the business by surprise. The notice may not be received at the opportune moment for their employer and could create issues in recruiting a permanent cover or completing an effective handover.
Employers can cancel pre-booked holiday, however, they need to give the correct notice to do so. This requires a period of notice that is at least the same length as the period of leave that will be cancelled. In this circumstance, the employer would have to give four weeks’ notice of cancellation before the start of the holiday. It is unlikely there will be sufficient time to do this as the notice has not been received in advance of the holiday leave commencing.
Most employers would have set in place arrangements to cover the employee’s role while they are out of the business for an extended period of time. These arrangements, such as moving another employee to cover the role or taking on an employee under a fixed-term contract, should be continued. Having temporary cover could even be used as an unofficial trial period to see how the covering employee carries out the role. If they excel within the role, they could be offered the position on a permanent basis. A holiday handover should also have been completed in advance of the employee handing in their notice, so this can be used as a good indication of what the role requires on a day-to-day basis.
Depending on the length of notice the employee has to give before her employment ends, the employer may not wish for her to return to work after the holiday ends. Where there is a contractual right to pay in lieu of notice, the employer can pay the notice pay and any other benefits to bring the contract to an end on the day notice is given. If there isn’t a contractual right to do this, the employer will breach the employee’s contract unless this is mutually agreed.
The advantage of paying in lieu of notice is that it allows the business to reduce notice and concentrate on recruiting or training another employee to do this role, rather than waiting for the employee to return to work for only a short period of time. The holiday cover can still be placed in the role for four weeks while a recruitment campaign is undertaken.
Peter Done is managing director of law firm Peninsula
