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ARTICLE · 17 MAY 2013

Resignation As A Bargaining Weapon – A Double-Edged Sword

Threatening to resign, when used by an employee to bargain for better working conditions, is a weapon that cuts both ways.

CanadaEmployment and HR

Threatening to resign, when used by an employee to bargain for better working conditions, is a weapon that cuts both ways. A tactic of this sort can easily backfire on the person making the threat, a point that was illustrated in a recent decision of the Quebec Court of Appeal in De Montigny c Valeurs mobilières Desjardins.1


The facts

This case involved a suit filed by a former president and chief operating officer against his ex-employer for more than $3M, claiming constructive dismissal.

Stating that he was dissatisfied with his total compensation, the plaintiff had tendered a letter of resignation to his employer. Orally, he explained that the resignation was to take effect only if the problems related to his compensation were not resolved and if a strategic plan was not established by a certain date. Initially, the employer refused to accept the plaintiff's resignation and reiterated its confidence in him, and the negotiations continued. A few weeks later,

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