The Resignation Trap: Avoiding Unwanted Consequences When An Employee Resigns

It may be assumed that when an employee says "I quit" or walks into his employer's office, hands in his keys and says "I'm done" the employer can accept the employee's resignation and move on with replacing the employee. However, this is not always the case and an employer who jumps to accept a resignation may later be found liable for wrongful dismissal damages. As discussed in this article, resignations must be evaluated on a case by case basis and an employer should review the circumstances of the resignation prior to its acceptance.

When is a Resignation Valid? 

A valid and enforceable resignation by an employee must be clear and unequivocal. To be clear and unequivocal, the resignation must reflect an intention to resign or there must be conduct demonstrating such an intention. Whether words or actions equate to resignation must be viewed contextually, meaning that all of the surrounding circumstances are relevant to determine whether an objective bystander