Resignation templates toolkit

A resignation is a formal process by which an employee voluntarily terminates their employment with a company. It involves the employee submitting a written notice to their employer, indicating their intention to leave the job and the date on which they plan to do so.

Resignation can be initiated by the employee for a variety of reasons, such as a better job opportunity, dissatisfaction with the current job, personal reasons, or retirement. It can also be initiated by the employer, in which case it is referred to as a termination or dismissal.

Resignation is an important process that allows both the employee and employer to plan for the future and make necessary arrangements.

• An employee may have been constructively dismissed if the employer's actions prompted them to resign.

• Unless the employer agrees to forgo the notice provision, the employee is required by his or her employment contract to work a period of notice.

• The employer should always accept an employee's resignation in writing, stating the last day the person is expected to work and the date the employment will end (if different).

• If the employment contract allows it, an employer may pay the employee in lieu of notice to enable his or her early departure from the organisation.

• Employers may place employees on "garden leave" for the duration of the notice period if their employment contracts allow it.

• Employers should conduct exit interviews to determine the cause for the employee's departure and to utilise this as a chance to fix any workplace concerns.

Navigating Resignation processes correctly is crucial to help you avoid any problems (which can be costly in terms of time, money and reputation).

Recent UK case law has highlighted key aspects of good Resignation management. Knowing how courts have handled claims can help you assess whether your proposed actions are likely to be seen as reasonable.

Here are some notable rulings and their implications:

• Fentem v Outform EMEA Ltd (2022)

  Facts: An employee resigned in April 2019 with a nine-month notice period, set to end in January 2020. The employer invoked a payment in lieu of notice (PILON) clause in December 2019, terminating employment a month early and paying the full salary.

  Outcome: The Employment Tribunal (ET) ruled that invoking the PILON clause did not constitute a dismissal. This decision was upheld by the Employment Appeal Tribunal (EAT), even though there were concerns about the reliance on previous case law.

  Key Takeaway: Employers can invoke PILON clauses without it being considered a dismissal, but the wording of such clauses must be clear to avoid breach of contract claims.

• Omar v Epping Forest District Citizens Advice (2020)

  Facts: During an altercation, an employee resigned in the heat of the moment and reiterated this resignation later the same day. When he attempted to withdraw his resignation, the employer did not accept, treating it as final.

  Outcome: The Employment Tribunal found that the resignation was genuine and that the employee had opportunities to withdraw it but did not. The EAT confirmed this decision, stating that once a resignation is given, it cannot be unilaterally retracted without the employer's agreement.

  Key Takeaway: Employers should handle "heat of the moment" resignations cautiously, ensuring clear communication and documentation. An employee's intention to resign should be assessed based on a reasonable bystander’s perspective.

• East Kent Hospitals University NHS Foundation Trust v Levy (2018)

  Facts: The claimant, Mrs. Levy, handed in a letter stating her intention to transfer to another department, which was interpreted as a resignation by her employer.

  Outcome: The Employment Appeal Tribunal (EAT) found that Mrs. Levy's letter was not an unequivocal resignation. The case was remitted back to the Employment Tribunal.

  Key Takeaway: Employers should carefully interpret resignation communications, particularly where the intention is ambiguous. Clear and unequivocal resignation statements are necessary for them to be valid.

• Robert S Rae v Wellhead Electrical Supplies Limited (2020)

  Facts: Mr. Rae, a director at Wellhead Electrical Supplies, had a heated exchange over salary increases and, in the heat of the moment, appeared to resign. He later attempted to retract his resignation, but the company refused.

  Outcome: The tribunal ruled in favour of Mr. Rae, concluding that his resignation was made under stress and not in a rational state of mind.

  Key Takeaway: Resignations made in the heat of the moment or under significant stress may not be legally binding. Employers should consider the context and the employee's state of mind before accepting such resignations.