A recent decision of British Columbia's Supreme Court in Balogun v. Deloitte & Touche, LLP, 2011 BCSC 1314 (CanLII) provides a salutary reminder for employers that a hastily uttered "I quit" (or similar), is generally not sufficient to support the resignation of an employee. The decision is consistent with the principle that an employee's conduct must objectively reflect an intention to resign, or there must be conduct evidencing this intention, for the resignation to be effective. A written resignation, given by the employee after having had time to consider his or her decision, likely satisfies this test.
In this case, the employee Mr. Balogun had on several occasions in his short career requested a pay increase from his employer, accounting firm Deloitte & Touche, LLP. The Company had responded that Mr. Balogun's performance did not warrant a pay increase.
At a meeting involving Mr. Balogun, his departmental manager and the office managing partner, Mr. Balogun's performance was discussed. According to the Company, Mr. Balogun commented that no one in the office was capable of assessing his performance. When asked what this meant for his future at the Company, he replied "I'm out of here". Mr. Balogun then proceeded to leave the office for a previously scheduled vacation. When Mr. Balogun returned from vacation, he found a Record of Employment attached to his apartment door, indicating that he had quit his employment.
Mr. Balogun sued the company for wrongful dismissal. The company's defence was that Mr. Balogun had quit when he said "I'm out of here" in response to a question about his future at the Company. Mr. Balogun denied uttering these words; however, it was his evidence that if he had made that statement, it would have been with reference to his leaving for vacation.
The British Columbia Supreme Court confirmed that resignation requires "clear and unequivocal" intent. In the case at bar, the Court found that Mr. Balogun's statement was ambiguous and not a clear statement of intention to resign. The Court's conclusion was influenced by the fact that the Company had not requested a letter of resignation from Mr. Balogun, something it would ordinarily have done. Therefore, when Deloitte & Touche processed Mr. Balogun's Record of Employment, it had effectively terminated his employment.
The lesson to be taken from this case: employers cannot take advantage of an employee's heated words or a rash decision; resignations should be confirmed by the employee, in writing if possible.
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