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Resignations in the Workplace – When Quitting isn’t Necessarily the End

The law with respect to determining the validity of a resignation in the workplace can seem as murky as the early summer waters of the lake at the cottage:  in the workplace, the utterance of “I quit” may not be considered a resignation at law when further context is provided.  However, just as with water safety, it is wise to take note of the general principles and the tales of others to minimize the risks in these situations.

In that regard, the following general principles inform any discussion of a workplace resignation:

• A resignation must be clear and unequivocal. It must objectively reflect an intent to resign, or there must be conduct evidencing such an intention.

   

• The surrounding circumstances must be reviewed to determine whether a reasonable person, viewing the matter objectively, would conclude that the employee resigned.

   

• A resignation during a spontaneous outburst during highly charged emotional circumstances can undermine its essential voluntariness. Moreover, sometimes an employee’s actions are equivocal such that his actions cannot be construed as voluntary resignation.

   

• The length of time an employee maintains that he resigned is relevant to the determination that he resigned and was not dismissed.

   

• [W]here an employee expresses dissatisfaction with an employer about a wrong committed by the employer (real or perceived), and declares and intention to seek other employment without words or actions indicative of a firm intention to quit, he or she has not quit.

   

• The retraction of a clear notice to quit must occur and be communicated to the employer before the employer communicates acceptance of the resignation to the employee.

The above principles, as derived from the case law, illustrate the importance of facts in each particular case; there is no doubt that the courts consider each case on its own circumstances.  In that regard, credibility findings are central to many resignation/termination cases. 

As such, employers are well-advised to document conversations and events as close as possible to the time of their occurrence, to clarify employee intentions and to formally send correspondence accepting employee resignations.  If an employee is found to have had his or her employment terminated rather than to have resigned, the employer may be liable for significant damages including payment in lieu of notice of termination.  The lawyers at CCPartners are able to assess and advise with respect to departed and departing employees to help employers minimize risk and avoid exposure.

***Note:  This article does not address constructive dismissal resignations or the right of an employee to refuse unsafe work.  A constructive dismissal may occur when an employer makes a significant change to a fundamental term or condition of an employee's employment without the employee's actual or implied consent.  Information on these topics can be found in previous blog entries, or by contacting one of the lawyers at CCPartners directly.