When an employee resigns, it is customary to give notice to the employer. However, there may be situations where an employee cannot give the required notice period. In such a case, the employee may offer payment in lieu of notice. A resignation letter with payment in lieu of notice is a formal communication between the employee and the employer. Here are some examples of resignation letters with payment in lieu of notice that you can use as a guide.
Example 1: Personal Reasons
Dear [Manager’s Name],
It is with regret that I tender my resignation from my position as [Job Title] effective [Date]. Due to personal reasons, I am unable to give the required notice period as per my employment contract. As such, I am offering to pay [Number of weeks or months] of my salary in lieu of notice.
Thank you for the support and guidance you have provided me during my time with the company. I will ensure to complete all outstanding projects and provide a comprehensive handover to my replacement.
Sincerely,
[Your Name]
Example 2: Medical Reasons
Dear [Manager’s Name],
It is with a heavy heart that I resign from my position as [Job Title] effective [Date]. Unfortunately, I have been diagnosed with a medical condition that requires immediate attention, and I am unable to give the required notice period as per my employment contract. In light of this, I am offering to pay [Number of weeks or months] of my salary in lieu of notice.
I am grateful for the opportunities that I have received while working with the company. I will be happy to provide any assistance required to ensure a smooth transition for my replacement.
Thank you for your understanding.
Yours sincerely,
[Your Name]
Example 3: New Opportunity
Dear [Manager’s Name],
Please accept this letter as formal notice of my resignation from my role as [Job Title] effective [Date]. I have recently been offered an exciting opportunity that requires me to start immediately, and I am unable to give the required notice period as per my employment contract. I am willing to pay [Number of weeks or months] of my salary in lieu of notice.
I would like to take this opportunity to thank you and the team for the experience and knowledge that I have gained while working with the company. I am committed to completing all outstanding work and handing over to my replacement.
Kind regards,
[Your Name]
Example 4: Career Change
Dear [Manager’s Name],
It is with regret that I submit my resignation as [Job Title] effective [Date]. After much consideration, I have decided to change my career path, and I am unable to give the required notice period as per my contract. I am willing to pay [Number of weeks or months] of my salary in lieu of notice.
I would like to express my gratitude to you and the team for the support and opportunities provided to me during my employment. I am committed to ensuring a seamless handover and will be available to assist in any way possible.
Sincerely,
[Your Name]
Example 5: Family Reasons
Dear [Manager’s Name],
It is with a heavy heart that I tender my resignation as [Job Title] effective [Date]. Family reasons require me to relocate, and I am unable to give the required notice period as per my contract. I am willing to pay [Number of weeks or months] of my salary in lieu of notice.
Thank you for the opportunities and support you have provided me during my time with the company. I will work diligently to ensure that all my responsibilities are completed, and the transition is as smooth as possible for my replacement.
Best regards,
[Your Name]
Example 6: Unforeseen Circumstances
Dear [Manager’s Name],
Please accept this letter as notice of my resignation as [Job Title] effective [Date]. Due to unforeseen circumstances, I am unable to give the required notice period as per my contract. I am willing to pay [Number of weeks or months] of my salary in lieu of notice.
I would like to take this opportunity to thank you and the team for the support and opportunities provided to me during my employment. I will ensure that all my responsibilities are completed, and the transition is as smooth as possible for my replacement.
Yours sincerely,
[Your Name]
Tips for Writing a Resignation Letter With Payment In Lieu Of Notice
If you need to write a resignation letter with payment in lieu of notice, here are some tips:
- Be clear and concise in your letter. State the reason for your resignation, the effective date, and the amount you are willing to pay in lieu of notice.
- Express your gratitude to the employer for the opportunities provided to you during your employment.
- Offer to assist with the transition process and to complete any outstanding work.
- Keep a copy of the letter for your records.
- Remember that the letter is a legal document, so it is essential to be professional in your tone and language.
Frequently Asked Questions
Can I pay less than the required notice period?
It is possible to offer to pay less than the required notice period, but this is subject to the employer’s agreement. If the employer agrees to the payment in lieu of notice, they may negotiate the amount that needs to be paid.
Do I need to provide a reason for my resignation?
It is not mandatory to provide a reason for your resignation, but it is advisable to do so. A reason helps the employer understand your situation and may help with the transition process.
Is payment in lieu of notice taxable?
Yes, payment in lieu of notice is taxable. It is treated as earnings, and income tax and National Insurance contributions will be deducted.
Do I need to sign the resignation letter?
It is not necessary to sign the resignation letter, but it is recommended to do so as it provides a clear record of your communication with the employer.
Can I withdraw my resignation after submitting the letter?
It is possible to withdraw your resignation after submitting the letter, but this is subject to the employer’s agreement. The employer may accept or reject the withdrawal of the resignation.
What should I do if my employer refuses payment in lieu of notice?
If your employer refuses payment in lieu of notice, you will be required to serve the notice period as per your employment contract. Alternatively, you may negotiate with the employer to reduce the notice period or agree on an alternate arrangement.
Conclusion
A resignation letter with payment in lieu of notice is a formal communication between an employee and an employer. It is important to be clear and concise in the letter and offer to assist with the transition process. Remember to keep a copy of the letter for your records and maintain a professional tone and language throughout the letter.