Resignation

There is no dismissal where the employee ends the contract by exercising free choice and resigning voluntarily. Employees are free to end the contract at any time through resignation. This is usually done by giving the notice required by the contract.

There is not normally a dismissal where an employee agrees to resign on mutually agreed terms. This is often described as a consensual termination. It is not possible to bring a claim for unfair dismissal following a genuinely consensual termination, so care must be taken when negotiating departure terms. Agreed terminations and voluntary resignations can also make it more difficult to claim state benefits, or benefits under any employment-related insurance product, such as mortgage protection insurance.

An employee who resigns when faced with a straight choice between resignation and dismissal will normally have been dismissed (Sandhu v Jan de Rijk Transport Limited [2007] EWCA Civ 430). An employee forced to resign should make a careful record of the details of the exchange with the employer and take advice from his or her rep as soon as possible.

To be effective, a resignation must have been communicated to the employer. However, there is no rule that a resignation must be communicated to a particular individual at the employer (for example, the person named on the resignation letter) to be effective. It is enough for it to reach the employer’s address (Horwood v Lincolnshire County Council UKEAT/0462/11/RN). An employee who has drafted a letter of resignation cannot be said to have resigned until the letter is sent (Edwards v Surrey Police [1999] IRLR 456).