By Zaynab Aly
The workplace can often be stressful, and challenging situations can lead to impulsive decisions. One of the common issues we see arising in stressful situations is heat-of-the-moment resignations: where an employee informs the business that they quit, but often this isn’t what the employee actually intends.
This article explains what employers should do after an employee resigns in the heat of the moment, share real-life examples of where it’s gone wrong, and how to best manage this situation.
The next steps after ‘I quit’
When someone offers their resignation, we ordinarily assume that it’s something they have considered and fully thought through. When an employer receives a clear and unambiguous resignation from an employee, the general rule is that the employer is able to accept this as a valid resignation.
However, when an employee irrationally resigns in the heat of the moment, employers should be careful in how they respond to them. This is because where an employee resigns in the heat of the moment or under extreme pressure, special circumstances may arise. If a heat-of-the-moment resignation is accepted at face value, there’s potential for unfair dismissal claims to be made by the employee claiming constructive dismissal.
A constructive dismissal is a form of unfair dismissal, and the onus of proof is upon the employee to show that their employer forced them to resign. In order to reduce the potential of a constructive dismissal claim, when employees tender their resignation in the heat of the moment, employers should allow a reasonable time to pass (for example 24 hours) and then follow up with the employee in writing to confirm their intention of resigning. This allows the employee an opportunity to calm down, assess the situation rationally, and make an informed decision.
So, what does the case law tell us, and how should we respond to a heat-of-the-moment resignation?
In the case of Sean Jen Eyong v Vital Packaging [2017] FWC 887, the Fair Work Commission (FWC) considered an unfair dismissal application arising from a heated discussion between an employer and an employee. During a disciplinary process, the employee became agitated and frustrated which eventually resulted in inappropriate commentary and an exclamation of “I resign”, on part of the employee. The FWC considered it unreasonable, considering the circumstances, for the employer to accept the resignation during that time.
What an employer should do in these situations is ask the employee to clarify what their intentions are and give them a chance to reconsider their intention. Employees who insist that their decision is to resign, should be asked to put this in writing.
If an employee does rescind their resignation, they can simply return to work. The business should consider if any circumstances need to be addressed, such as grievances or other factors which led to the heat-of-the-moment resignation.
Handling heat-of-the-moment resignations can be difficult and unfortunately, they are quite common. Businesses must understand what the best process for dealing with them is so they can avoid unfair dismissal risks.
How HR Assured can help?
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Zaynab Aly is a Workplace Relations Consultant at HR Assured. She has a particular interest in the retail industry and regularly provides advice on workplace matters to find solutions for clients.