The process of parting ways with an employee, whether voluntary or involuntary, can be challenging. At Plane, we strive to handle these situations with care and understanding, ensuring a smooth transition for all parties involved. Below is a simplified guide on how to navigate employee offboarding through Plane.We recognize the importance of transparency and communication when it comes to offboarding. Whether it's a voluntary resignation or an involuntary termination, please keep us informed from the outset so we can provide you with the necessary support and guidance throughout the offboarding process.
Voluntary Offboarding 👋
Voluntary offboarding occurs when an employee decides to end the employment relationship (e.g., they have found a new role, relocate, or retire).Steps and Process
- Employee is required to send a resignation letter addressing to their legal employer identified on the employment contract.
- Provide details of the employee's Paid Time Off (PTO) usage.
- After receiving the employee’s resignation letter and PTO information, we will begin offboarding.
- Our team will handle the necessary paperwork and communicate important offboarding details to the employee.
- Sometimes, employees may need to sign an acknowledgment, which Plane will arrange as needed.
- The employee will receive their final pay, including any unused accrued PTO (if applicable).
Important Notes
- Timing: Depending on the notice period outlined in the employment contract, the offboarding process may take 1 to 4 weeks.
- Required Documentation: A resignation letter from the employee and details of their PTO usage.
- Wet signatures may be necessary, depending on local regulations.
Involuntary Offboarding, or Terminations❗
Involuntary offboarding is when the employer initiates the termination of the employment relationship.. If you're considering terminating an employee, please keep us informed from the outset by reaching out to support@plane.comIn most cases, employee termination requires a justifiable cause, backed by valid documentation. It should be treated as a last resort after exploring all available options.For instance, if an employee has undergone a performance improvement plan and received multiple warnings but fails to meet expectations, documented evidence of these instances is crucial. Plane will request this documentation to ensure a fair and legally compliant termination process.Failure to justify a dismissal may expose the employer to legal action for unfair dismissal, a situation best avoided by all parties. Important Notes
- Outside the U.S., "at will" termination is uncommon, with most countries requiring a valid cause for termination.
- Plane typically refrains from facilitating unilateral terminations due to legal risks and may require mutual termination agreements for involuntary offboardings.
- Employees should only be informed of termination after Plane has provided final termination documents.
- Timing: The termination process duration varies based on notice periods and local regulations, ranging from 2 weeks to over 3 months.
- Documentation (if applicable): Performance records, misconduct reports, or other termination-related documentation.
- The employee remains on the payroll until the termination process concludes.
- Redundancy doesn't justify termination within the Employer of Record context; mutual termination is advised in such cases.
- Depending on local regulations, minimum pay in lieu of notice and severance may be obligatory, outlined in employment contracts or provided by Plane. Additional severance is offered on the Mutual Termination Agreement (MTA) in exchange for a signature.
Mutual Termination Agreements 📝
Plane employs the practice of Mutual Termination Agreements (MTAs) for involuntary offboarding in most countries, minimizing costs and legal risks for employers. These agreements cover various aspects such as unused leave, notice periods, severance, and negotiated terms in exchange for the employee waiving their right to challenge the termination.It's essential to note that employees cannot be compelled to sign an MTA against their will.If an MTA isn't feasible, we conduct a thorough legal assessment to ensure compliance with labor laws. Based on our findings, we determine the appropriate course of action regarding termination.MTAs may also be referred to as Settlement Agreements or Release & Waiver letters.Steps and Process
- Provide the reason for termination and details of the employee's PTO usage. Inform us of any pertinent information, such as recent leaves (e.g. sick leave, parental leave), performance issues or behavioral issues.
- Plane will draft and share the necessary termination documents with you for review.
- Once finalized, you must inform the employee and share the documents with them, guided by any country-specific requirements.
- Notify us once the employee has been informed.
- The employee may review the termination documents and seek legal advice if necessary.
- If the employee agrees to the terms, they should notify either you or Plane. We will provide instructions on signing, including any requirement for wet signatures.
- Upon signing, final payments, including unused accrued PTO, notice, and severance, will be paid to the employee.
Severance
Severance provisions vary by country. Please consult your employment contract or contact support for further details.Payout of Unused Holiday/Vacation Leave
Employees are entitled to receive payment for any accrued but unused PTO or vacation leave upon termination. This applies even if the company operates under a flexible PTO policy.Pay in Lieu of Notice & Garden Leave
Employment contracts typically stipulate notice periods, during which an employee may receive pay in lieu of notice or be placed on Garden Leave, remaining employed but not required to work. These arrangements vary by country and individual circumstances.
