How to Respond to a Resignation as an Employer
Employee resignations can be challenging, especially when emotions run high. While most resignations are carefully considered, there are occasions when an employee makes a rash decision in the heat of the moment.
When someone offers their resignation, we assume it’s something they have considered and fully thought through. When you receive a clear and unambiguous resignation from an employee, the general rule is that it can be accepted as a valid resignation.
As a rule of thumb, once an employee has communicated their resignation to an employer, they cannot withdraw their resignation later because they change their mind. However, an important exception exists if an employee resigns under special circumstances, such as those that occur in the heat of the moment. Case law (further examples in this blog) has now determined that employers must follow a specific procedure to accept this type of resignation.
However, when an employee irrationally resigns in the heat of the moment, the response is not as straight forward as you think it should be.
If accepted at face value, such resignations can expose employers to unfair dismissal claims, with employees arguing constructive dismissal. Employers must therefore take a structured approach to ensure resignations are genuine, voluntary, and legally sound.
Here are four key steps to manage a heat-of-the-moment resignation effectively:
How to Handle a Resignation
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Allow a Cooling-Off Period
When an employee resigns impulsively—often during a heated discussion or stressful situation—resist the urge to accept it immediately. Instead, allow a cooling-off period of at least 24 hours.
This gives the employee time to reflect and reconsider their decision with a clearer perspective. Rushing to confirm the resignation could later be viewed as an unfair dismissal if the employee claims they were pressured into leaving.
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Clarify the Resignation
Once the cooling-off period has passed, arrange a private discussion with the employee. This conversation should aim to:
- Understand the reasons behind their decision.
- Ensure they are fully aware of the implications of resigning.
- Identify any underlying issues that may have triggered the resignation.
In some cases, an employee may wish to withdraw their resignation after reflecting on the situation. If their decision was purely emotional and not a considered choice, offering support and resolving any workplace concerns could help retain a valuable team member.
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Request a Written Resignation
If, after the cooling-off period and clarification, the employee confirms their intention to resign, it’s crucial to request a written resignation letter. This formalises the process and provides a clear record of the employee’s decision, which can be important for legal and administrative purposes.
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Handle the Resignation Professionally
Thanking the employee for their contributions, acknowledging their skills and inputs, and wishing them well in their future endeavours can help maintain a positive relationship and leave the door open for potential future collaboration.
Developing a transition plan to manage the employee’s responsibilities and ensuring a smooth handover also helps maintain business continuity.
Case Law: What the Fair Work Commission Says
Legal precedents highlight the risks of accepting heat-of-the-moment resignations too quickly.
Sean Jen Eyong v Vital Packaging [2017] FWC 887
In this case, an employee resigned impulsively during a disciplinary meeting. The employee became agitated and frustrated, which eventually resulted in inappropriate commentary and an exclamation of “I resign” on the part of the employee. The Fair Work Commission (FWC) ruled that given the emotional circumstances, it was unreasonable for the employer to immediately accept the resignation.
Bupa Aged Care Australia Pty Ltd v Shahin Tavassoli [2017] FWCFB 3941
The FWC reinforced that a resignation given under emotional distress may not be legally binding. Employers must ensure that:
- The resignation was genuinely intended. A resignation is not legally effective because it was expressed in the heat of the moment or when the employee was in a state of emotional stress or mental confusion.
- The employee had a real choice in the decision.
- The employer did not engage in conduct that pressured the employee into resigning.
Failing to clarify the resignation can lead to claims of unfair dismissal, even if the employee initially stated they were resigning.
- on and unlawful conduct.
Key takeaways
Managing employee resignations—especially those made in the heat of the moment—requires a structured, fair, and legally sound approach.
To protect your business from potential disputes, follow these four steps:
- Allow a cooling-off period before accepting the resignation.
- Clarify the employee’s intention to resign after emotions have settled.
- Obtain a written resignation letter for documentation.
- Handle the resignation professionally to maintain positive workplace relationships.
By taking these precautions, you can ensure that resignations are voluntary, legally binding, and minimise the risk of unfair dismissal claims.
How Can Akyra Help?
At Akyra, we help SMEs stay ahead of legislative changes with tailored HR support.
If you need expert guidance on handling employee resignations, disciplinary matters, or HR compliance, Akyra is here to help. Contact us today to discuss tailored HR solutions for your business.
Contact Akyra today—your trusted HR partner.
Disclaimer – Reliance on Content
The material distributed is general information only. The information supplied is not intended to be legal or other professional advice, nor should it be relied upon as such. You should seek legal or professional advice concerning your specific situation.
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Fair Work, HR, HR Advice, Human Resources, Keeping People, People Management , Fair Work Act,
