Resignations are where small companies show their HR maturity (or lack of it). Handled well, the person leaves on good terms, their knowledge stays, assets come back and the settlement is clean. Handled badly, you get emotional reactions, lost knowledge, a laptop that never comes back and a settlement dispute that drags on for months. Here is the process we recommend.

The 9-step resignation playbook

1. Receive the resignation in writing

Verbal resignation does not count. Get it in writing, as a formal letter or email. It should state the intended last working day and, ideally, a basic reason.

2. Acknowledge formally

Within 24-48 hours, send a written acknowledgement. Confirm the last working day per the notice period, mention the exit steps that will follow, and keep the tone respectful.

3. Decide on the notice period

Standard in Pakistan is 30 days for permanent employees under the Industrial & Commercial Employment Ordinance. Your contract may specify longer (60 or 90 days for senior roles). Options:

Serve full notice (most common)
Pay in lieu (company pays out the notice amount, employee leaves earlier)
Waive (mutually agreed shorter notice)
Hold to full notice (legally enforceable for the period)

4. Have a conversation

Within a few days of receiving the resignation, have a structured conversation with the employee. Goals: understand reason, explore counter-offer if appropriate, plan handover. Do this before public announcement.

5. Plan knowledge transfer

Roles that hold a lot of knowledge (engineering, sales relationships, project ownership) need a structured handover. Document responsibilities, current projects, contact lists, system access maps. Allocate handover time in the notice period.

6. Announce to the team

After the conversation and once handover plan is set. Brief, factual, positive. Avoid speculation about reasons.

7. Trigger multi-department exit clearance

Two weeks before last day:

HR: paperwork, exit interview scheduled
IT: schedule account deactivation for last day end-of-business
Admin: ID card return, parking pass return, access cards return
Finance: outstanding dues check, loans / advances reconciliation
Manager: handover sign-off

Each department gets a checklist task; HR tracks completion.

8. Exit interview

One week before last day, structured exit interview with HR. Topics:

What worked, what did not
Manager feedback (in private)
Suggestions for improvement
Acknowledgement of confidentiality and non-compete obligations (if applicable)
Forwarding address for tax documents

9. Final settlement on last day or within 30-45 days

See the final settlement playbook. Pay all dues, deduct outstanding recoveries, issue settlement letter, salary tax certificate, experience letter, and reference (if requested).

The common resignation mistakes

Reactive emotional handling

Manager taking the resignation personally, refusing to discuss, freezing out the employee for the remaining notice period. It hurts everyone: the exiting employee, team morale and the company's name. Resignations are business decisions; handle them as such.

No knowledge transfer plan

The employee finishes notice, walks out, and three weeks later the team realises they have no idea how the X system works. Knowledge transfer must be deliberate.

Asset recovery as an afterthought

The laptop is marked as returned on the last day, but only "noted" on a piece of paper, never checked. Two months later the asset register shows the laptop with an ex-employee. Asset recovery must be a structured workflow.

Slow final settlement

Settlement should be paid within 30-45 days. Delays beyond this invite labour-court complaints and damage your reputation as an employer.

Skipping the exit interview

The exit interview is where you learn what is actually going wrong. Skip it and you lose the most honest feedback you will ever get.

The legal protections to remember

Notice period or pay in lieu: both sides are bound
Confidentiality obligations survive employment
Non-compete clauses (if any): enforceable per contract
IP assignments: company-owned work stays company-owned
Salary tax certificate: must be issued to the employee
EOBI / PF / PESSI exit notifications: must be filed

Where HR software helps

Zaffre HRM has a structured exit workflow. Clearance tasks go to each department automatically, asset returns are tracked, the final settlement is calculated, the settlement letter is prepared and EOBI/PF exit notifications are raised. Book a demo to see the exit workflow.

Caveat

Resignation handling involves contract, labour law and tax considerations. This article is a general guide; consult your HR / labour-law advisor for specific cases.

How to Handle Employee Resignation Properly in Pakistan