LRD guides and handbook May 2019

Law at Work 2019 - the trade union guide to employment law

Chapter 10

Resignation 





[ch 10: pages 330-331]

There is no dismissal if an employee resigns voluntarily. Employees are free to end the contract at any time by resigning, which they usually do by giving the notice required by the contract.


A resignation does not need to be “accepted” by the employer in order for it to take effect (Wallace v Ladbrokes Betting and Gaming (UK) Limited [2016] UKEAT/0168/15/JOJ). This can have important implications when it comes to working out the date the employment ended. Mistakes can lead to missed time limits and lost rights so great care is needed. See page 363: Effective date of termination.




To take effect, a resignation must be communicated to the employer, but communication need not be to a particular individual such as the person named on the resignation letter (Horwood v Lincolnshire County Council [2012] UKEAT 0462/11/0304). 


An employee who has drafted but not sent a letter of resignation cannot be said to have resigned (Edwards v Surrey Police [1999] IRLR 456).





There is not normally a dismissal where an employee makes a genuine choice to resign on mutually agreed terms (Sandhu v Jan de Rijk Transport Limited [2007] EWCA 430). Care must be taken when negotiating departure terms to make sure members understand the effect on their ability to bring future claims. 


Agreed terminations and voluntary resignations can make it harder to claim state benefits or commercial benefits linked to income protection, such as mortgage protection insurance.




In general, there will be a dismissal if an employee resigns under threat that if they do not resign, they will be dismissed. Employees in this situation need to be cautious, as the employer is likely to deny their version of events. A careful note should be made of the exchange and advice taken as soon as possible. This aspect of the employment relationship is likely to be affected by the introduction of “protected conversations” (see page 489-491). 





Notice, once handed in, cannot be withdrawn without the employer’s consent. There is a rare exception for so-called “heat of the moment” cases, where an employee resigns rashly out of anger, severe stress, or emotional immaturity. The law allows a very short window (usually just hours) in which to calm down and step back from words spoken in the heat of the moment — to say: “I didn’t really mean it” (Martin v Yeoman Aggregate Ltd [1983] IRLR 49). Anyone in this situation needs to act very quickly to try to put things right if they want to get back to work. A careful note should be kept of everything said and done, which can form the basis of a witness statement in any later claim.


Only exceptionally can an employer ever withdraw words of dismissal uttered in the heat of the moment (Willoughby v CF Capital PLC [2011] EWCA Civ 1115). 


Clear language should always be used when communicating with your employer about ending the employment, so that there is no room for misunderstanding.