A Resignation, and a Dilemma

When an underperforming employee resigns with the standard 30-day advance notice, a practical question follows: should the worker be required to serve out the notice period, or should the employer accept an immediate departure? The decision touches more than the calendar: it involves pay, documentation, and the team the worker leaves behind.

A reader signing as Cloud Harbor posed exactly that question in a letter to BusinessWorld columnist Rey Elbo: “A poor performer has resigned with a 30-day advance notice. Is it a good idea to forego the advance notice and allow the person to leave immediately?” The 30-day standard reflects Philippine labor law, which asks employees who resign to serve at least one month’s written notice.

In his response, Elbo argues that in many cases waiving or shortening the notice period and requiring an immediate departure is a positive move — particularly when the departing employee is a poor performer. “You are in luck. You don’t have to perform the unpleasant job of disciplining the person,” he writes.

The option comes with conditions: the employer must release the employee’s terminal pay and complete a proper turnover of duties. An even better approach, according to the column, is to place the departing worker on paid leave for the duration of the notice period, even if the person lacks sufficient leave credits.

“Gardening Leave” and the Case for an Immediate Exit

The arrangement is known as “gardening leave” — staying away from the workplace and refraining from work while remaining on the payroll throughout the 30 days. The trade-off is deliberate: the employer keeps paying, but clears the workplace of the risks a disengaged presence can carry. Allowing a disengaged employee to stay on during that window, Elbo warns, may create more problems than it solves. He cites four reasons:

1. Advance notice exists for the employer’s protection. The law requires the notice period to ensure a proper transition: appointing a replacement worker, training that person, and allowing the turnover of documents, equipment, and other tools previously entrusted to the resigning worker. Because the obligation exists to protect the employer, it can be waived when circumstances warrant.

2. The person’s continued presence has limited value. A poor performer at that late stage is unlikely to deliver outstanding work. Low motivation can complicate even knowledge transfer and the handover of pending tasks; output may decline further, errors may increase, and residual tasks may require rework.

3. A poor performer can demotivate others. The departing worker can demoralize the team or department by spreading negativity, distracting colleagues and, in many cases, posing security or data risks. Morale and productivity are bound to improve once the problem worker is gone, the columnist notes.

4. Management time is needlessly consumed. Supervising someone who has already checked out consumes energy better spent on hiring a replacement, redistributing work assignments, and supporting remaining employees. If effort is not redirected, Elbo adds, management should instead reflect on why it failed to correct the employee’s poor performance early on.

How to Execute a Clean Exit

Given these considerations, the recommendation is to let the resigned employee go right away — and to document the decision in writing. The acceptance letter should state that the employer is waiving its protection under the notice rule and set clear expectations, including the date and time terminal pay — the final compensation owed at the end of employment — and encashed benefits will be released, as well as the signing of a quitclaim, the document that formally records the settlement of monetary claims at separation.

A structured knowledge transfer should be required, preferably completed within one day. That includes documented key notes; a list and status of pending tasks; and the return of the identification card, uniforms (even if worn out), gate pass, computer, mobile phone, and other equipment. Critical work should then be reassigned promptly to another worker.

At every step, Elbo advises keeping everything objective and professional, which reduces the chance of a labor dispute.

Skip the Exit Interview

The column also cautions against conducting an exit interview with a resigned underperformer, saying it offers little or no value while consuming limited operational resources — and that it is already too late to understand a worker’s underperformance, for four reasons:

• Low objectivity and defensiveness. Departing poor performers rarely offer quality feedback. Responses tend to skew toward lingering complaints or deflection of responsibility, making the input unreliable for organizational improvement.
• Risk of an awkward confrontation. However good management’s intentions, an exit interview can fuel old issues or lead to an emotional re-litigation of past performance reviews.
• Wasted resources. Management time is better devoted to improving retention strategies for current top performers and onboarding high-potential recruits or internal replacements.
• Documentation should already be complete. Meaningful feedback presupposes that poor performance was properly documented and discussed with the problem employee, such as through the results of a Performance Improvement Plan or similar reviews.

Bottom Line

When a problem worker resigns, Elbo’s advice is to waive the 30-day advance notice rule and release the person quickly, prioritizing a clean, legal exit that preserves team morale and respect. There is no powerful reason, he writes, to force a resigned worker to finish pending work — an approach that rarely produces good results and often demotivates colleagues who are doing a good job.

The priority instead is a clean, controlled exit procedure guided by the applicable social and labor legislation, ensuring professional courtesy and mutual respect for both the former employee and management. The episode also underscores the longer-horizon work the column points to: documenting performance through reviews and improvement plans while the employee is still on the payroll, since that record is what makes a fast, dispute-free exit possible once a resignation letter arrives.

Rey Elbo offers free consultations. Readers may e-mail elbonomics@gmail.com, send him a direct message on Facebook, LinkedIn, or X, or reach him via Anonymity is guaranteed, if requested.