Employees resign. It’s part of the employee lifecycle, and employers need to be prepared for it. Sometimes you can see it coming. Other times it can happen suddenly.
In a hyper-competitive market, a resignation isn’t just an administrative hurdle. It is a critical moment for your employer brand. How you handle a departure dictates whether that employee becomes a lifelong brand advocate or a liability in the talent marketplace.
At IQ PARTNERS, we help companies hire better and retain more. That process doesn’t end when an employee gives notice; it shifts.
Our Toronto executive search experts have created this checklist for employers on what to do during an employee resignation period in Ontario.
Get the departure experience right
In the era of labour hoarding, your reputation for how you treat people on the way out is a competitive advantage. You never know if they may come back in the future. You also want them to have good things to say about your company. Make sure to:
- Facilitate knowledge transfer: Set clear expectations for a clean hand-off. This protects your operational continuity.
- Celebrate the contribution: A professional farewell maintains goodwill and keeps the door open for “boomerang” talent.
- Finalize with precision: Ensure final pay, vacation entitlements, and property returns are handled flawlessly to avoid legal friction.
These three actions can help create an amicable departure.
Checklist for Employers During an Employee Resignation Period
1. Acknowledge the resignation
Promptly acknowledge the resignation in writing, but don’t stop there. In Ontario, compliance with the Employment Standards Act is the bare minimum. Upon receiving an employee’s resignation, promptly acknowledge it in writing and confirm the resignation date. This will help establish clear communication and ensure both parties are on the same page regarding the employee’s departure.
2. Review the employment agreement and notice period
Refer to the employment agreement or relevant policies to determine the required notice period for resignations. In Ontario, the Employment Standards Act sets a minimum notice period based on an employee’s length of service. Ensure compliance with these requirements.
3. Communicate with the employee
Schedule a meeting or have a conversation with the resigning employee to discuss their reasons for leaving, any transition requirements, and their intentions regarding handing over responsibilities. This allows for a smooth transition and helps you plan accordingly.
4. Consider the possibility of a counteroffer
In some cases, you may want to present an employee with a counteroffer in hopes of keeping them. Evaluate the situation. If you want to, prepare the counteroffer and present it to the employee. If they decline, continue with the resignation process.
Be sure to avoid the counteroffer trap. When a top performer resigns, the reflex is often to offer more money. We advise caution.
- Check the Alignment: Use our smartFACTOR™ lens. If the resignation is due to a lack of cultural fit or a values mismatch, a raise is a temporary Band-Aid.
- The 90-Day Reality: Statistics show most employees who accept a counteroffer leave within six months anyway. If the “why” isn’t fixed, the “when” is just delayed.
5. Conduct a “deep-dive” exit interview
Consider offering the resigning employee an opportunity to participate in an exit interview. This can provide valuable feedback on their experiences within the company and help identify areas for improvement.
Treat the exit interview as market research, not a formality.
- Identify Friction Points: Did the daily reality of the role match the initial briefing?
- Audit Soft Skills: Was there a gap in resiliency or communication support that led to burnout?
- Gather Intelligence: Use this feedback to refine your “Stay Interview” process for the remaining team.
Read more: Want to Keep Your Top Employees? Try the ‘Stay Interview’
6. Evaluate workload and transition plan
Assess the resigning employee’s workload and responsibilities to determine how best to distribute or transfer them. Identify potential successors or individuals who can take over the responsibilities temporarily or permanently.
7. Inform relevant departments
Communicate the employee’s resignation to other relevant departments, such as HR, payroll, IT, and any managers or team members affected by the departure. Ensure a smooth transition of administrative tasks, benefits, and access to systems or data.
8. Update documentation
Update employee records and HR documentation to reflect the employee’s resignation and any changes in responsibilities or reporting lines. This includes updating employee files, organizational charts, and any relevant systems or databases.
Ensure that the employee receives their final paycheck, including any outstanding wages, vacation pay, or other entitlements, according to Ontario employment laws. Coordinate the termination of benefits and provide information on relevant resources, such as pension plans or COBRA coverage.
Tired of losing talent? Here are 4 Things To Do When You Lose a Top Employee
9. Conduct a farewell and thank you
Show appreciation for the resigning employee’s contributions and organize a farewell gathering or communication to acknowledge their time with the company. This fosters a positive relationship and maintains goodwill.
10. Return company property (if applicable)
Request the return of any company property, such as laptops, access cards, or keys, and update inventory accordingly. Set clear expectations regarding the return process and any consequences for failing to return company property.
Throughout the resignation period, maintain professionalism and confidentiality regarding the employee’s departure. Avoid sharing sensitive information with unauthorized individuals and ensure compliance with privacy regulations.
Strategic Backfilling: Hire Better, Hire Less
A resignation is a rare opportunity to audit the role itself. Before you post a job description:
- Assess the Workload: Can the responsibilities be redistributed to improve the efficiency of existing stars?
- Shift to Skills-Based Hiring: Don’t just look for a carbon copy of the person leaving. Focus on the core competencies and transferable skills required for your 2026 goals.
- Access the Market, Not Just the Inbox: This is the time to leverage deep networks to find the best talent in the market, rather than settling for the best on the market.
Losing a top employee is difficult, but it’s also an opportunity to reset and level up your team. Tired of reactive hiring? Connect with our Toronto Executive Search experts today.
NOTE: Remember, this checklist serves as a general guide. Get legal counsel or refer to specific employment laws and regulations in Ontario for complete compliance during an employee resignation period.
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