Why the distinction matters?
Employment relationships typically end in one of two ways, either by resignation or by dismissal.
For an employer, resignation of an employee usually comes with significantly less liability or potential repercussions.
By comparison, dismissals, especially where the reasoning is ambiguous or disputable, can expose an employer to claims under the Fair Work Act 2009 (Cth).
When is a resignation a dismissal?
So, what distinguishes a resignation from a dismissal? Common sense would suggest that a resignation occurs where an employee decides that they no longer wish to continue their employment and communicates that decision to their employer. On that basis, if an employee is asked, “do you want to continue working here?” and the response is “no”, then that would be a resignation, right? Not always.