Navigating Employee Resignations: A Guide for Employers

Handling employee resignations can be tricky, particularly when emotions are involved. While the vast majority resignations are well thought out, there are instances where an employee may make a spur-of-the-moment decision to resign.

In general, when an employee submits a clear and intentional resignation, the general rule is that it is accepted as a valid resignation. However, there are some exceptions. Resignations made in the heat of the moment for example: during an argument, under extreme stress, or in an emotional outburst – are treated differently under the Fair Work Act.

The Fair Work Commission have ruled that employers must take extra steps before accepting such resignations to ensure they are genuine and voluntary. Failing to do so could expose businesses to unfair dismissal claims, including allegations of constructive dismissal.

To assist in handling these situations with care, here are some key steps employers should take when faced with a heat-of-the-moment resignation.

Allow Time for Reflection
When an employee resigns in the heat of the moment – perhaps during a tense discussion or under extreme stress, it’s best to avoid accepting it right away. Instead, give them at least 24 hours to step back and reconsider.

This pause allows emotions to settle, giving the employee a chance to reflect on their decision with a clearer mindset. Immediately accepting an impulsive resignation could later be challenged as an unfair dismissal if the employee claims they felt pressured to leave.

Confirm Their Intentions
After the cooling-off period, schedule a private conversation with the employee to:

• Understand what led to their resignation.
• Ensure they fully grasp the consequences of their decision.
• Address any underlying issues that may have influenced their choice.

Some employees may decide to stay after having time to reflect. If their resignation was purely an emotional reaction, offering support and discussing workplace concerns could help retain a valued team member.

Formalise the Resignation
If the employee remains firm in their decision, it is very important to request a formal resignation letter. A written record helps clarify their intent and protects both parties from any future misunderstandings or disputes.

Maintain Professionalism
Regardless of the circumstances, handling a resignation with professionalism is key. Express gratitude for the employee’s contributions, acknowledge their efforts, and extend best wishes for their future.

Additionally, putting a transition plan in place, ensuring a smooth handover of responsibilities with another employee helps maintain business continuity while leaving the door open for positive future connections.