When someone says “I quit”, in the heat of the moment, it often stirs up a whirlwind of emotions for any business owner – especially if it’s out of the blue or from a valued team member.
Let’s face it though, there might also be a silver lining if their departure resolves ongoing issues! However tempting it may be to quickly accept their resignation, it might be worth seeking HR advice before you do!
Resignations in the heat of the moment, often occur at fractious moments in the employment relationship, especially when employees are faced with issues relating to their absence from work, formal disciplinary or performance processes.
Sometimes, the resignation reflects the reality that the mutual relationship of trust and confidence between employer and employee that should exist between has deteriorated beyond the point of return.
However, case law has long recognised that sometimes a resignation may not be ‘rational’, ‘really intended’, or ‘seriously meant’ as noted in the recent case of Omar v Epping Forest District Citizens Advice [2023] EAT 132, the Employment Appeal Tribunal looked at a string of cases on that issue and has now helpfully clarified that:
- An unambiguous resignation is generally binding and there is no exception for ‘special circumstances’;
- An employer is under no duty to check whether a resignation is real; and
- The key to understanding whether a resignation is ‘really intended’ is what ‘a reasonable bystander’ hearing the words would have understood.
However, it does still mean that there will be occasions where a resignation is not really intended and deciding whether that is the case, may not always be straightforward, and it’s a good idea to seek advice from an HR professional or employment lawyer.
Where an employer suspects that a resignation was not genuinely meant, the wisest course of action is often to give the employee some breathing room and encourage them to reflect on their decision. Because being overzealous in accepting a resignation could still risk an unfair dismissal claim!
The risk of unfair dismissal is not the only reason to tread carefully where “in haste” resignations are concerned. Being quicker to accept a resignation from an employee with disabilities than another employee without them, might also give rise to a discrimination claim, for example. Practically-speaking, a less hasty departure may also increase the chances of a handover of business critical information and the return of valuable employer property.
Overall, the law reflects and clearly takes into account that a resignation, while often routine, is a significant act, and what that means is, it’s difficult to resign inadvertently. When done clearly, it deserves respect; and, when there are doubts about whether it is genuinely intended, it is worthwhile to double-check the resignation was truly meant, and follow our best practice advice below;
- Give them a “cooling off period” if their resignation was given in the heat of the moment. We would suggest a minimum of 48 hours notice is given asking them to reconsider and confirm if their resignation stands.
- If they still wish to go ahead and resign, ask for their resignation in writing – so a letter or an email are fine, to keep records clear and avoid any disputes.
- Check their contract of employment and create a a resignation acceptance letter that;
- Confirms you are accepting their resignation
- Confirms their contractual or statutory notice period; whichever is the longer, and their last day of work, so that you can both start planning for the future.
- Calculates their holiday entitlement until their last day of work and calculate whether any holiday is owing to them or that they may owe you! Confirm all of these details in their resignation acceptance letter.
- Decide if they should work all, some or none, of their notice period – you may want to discuss this with your HR consultant/adviser.
- Express your regret, wish them well and offer an exit interview to find out their real reasons for leaving. This information can be helpful for you as a business as there may be common themes that appear in your exit interviews, allowing you to address them.