My Employee Withdrew Their Resignation. What Can I Do?

There are various ways to terminate an employment contract. This can be done by either you as the employer or by your employees. When an employee terminates the employment contract, they can do this by handing in their resignation. Whatever the reason, sometimes an employee may have a change of heart after handing in their resignation notice. If your employee resigned and then withdrew their resignation, this results in a retracted resignation. This could leave you, as the employer, unsure of what to do.

This article will explain resignations, how your employee may go about it, and your legal position as an employer if your employee withdraws their resignation. You must be aware of what to do in such circumstances to help avoid employment tribunals.

What is Resignation?

If your employee resigns from their role, they end their employment contract with you. Resigning can also be termed:

• quitting the job; or
• handing in the notice.

Your employee may resign at any point during their employment with you.

How Should My Employees Hand in Their Resignation?

If your employee decides to resign, they should typically give you notice of this. Their contract of employment with you should state how long that notice period is. If their contract does not specify their notice period, if they have worked for you for one month or more, they must legally give you a minimum of one week’s notice. This requirement does not increase where your employee has worked for you for longer than one month.

If you have a resignation process for your business in any procedural or policy document, your employee should follow this. You should state a process and include a clause in your employee’s employment contract requiring notice of resignation to be in writing. This will save any confusion over resignation. 

Where you do not have a clause in the contract or a procedure in place, your employee will likely resign in writing anyway. However, there is nothing that requires them to do this. If your employee’s employment contract states that notice must be handed to you in writing, they should follow this when handing in their resignation.

If your employee resigns in the heat of the moment, you, as an employer, are responsible for advising them to think about their request. You should advise them that they should let you know after doing so if they still wish to resign.

Do I Have to Accept My Employee’s Retraction of Their Resignation?

If your employee resigned and then withdrew their resignation, you can choose whether to accept the resignation or the retraction. You have no legal requirement to accept a retraction – even if you have not formally accepted their resignation notice. Instead, an employee must get your express permission to withdraw their resignation notice. 

Choosing to Accept Your Employees’ Resignation Despite Their Retraction

If you decide not to accept your employee’s retraction of their resignation, your employee must still work their notice period. There are some situations you should take note of if deciding to accept your employees’ resignation after they have retracted it.

1. Resignation in the Heat of the Moment

While there is no legal requirement for you to accept a retraction of resignation, if the resignation was given in the heat of the moment and you choose not to accept the employee’s later retraction, a tribunal could view your response as unreasonable. It could also deem the resignation invalid.

2. Resignation in Response to Another Employee

If your employee handed in their resignation notice due to the action of another employee and then retracted it, you should consider whether your acceptance of their resignation may appear invalid to a tribunal.

3. Resignation Leads to a Claim for Constructive Unfair Dismissal

Constructive unfair dismissal is when an employee feels forced to resign due to their employer’s serious employment contract breach. A breach might be:

• bullying or discrimination by an employer;
• an employer refusing to examine a grievance issue; or
• an employer consistently, without good reason, not paying the agreed-upon amount.

When an employee hands in their resignation and claims they are doing so because you, as the employer, have made a fundamental breach of the employment contract, they may claim constructive unfair dismissal.

An employee may only have a claim for constructive unfair dismissal if they have worked for you for two years and are legally classed as an employee. 

Therefore, if you have not already done so, you should investigate their accusation and try to resolve it before deciding to continue to accept their resignation.

Key Takeaways

When your employees decide to hand in their resignation, they must follow some rules. For example, they must give the correct notice period. However, what if your employee withdrew their resignation later? Here, you are under no legal obligation to accept their retracted notice of resignation. Instead, you can continue to accept their original notice of resignation. However, you should consider the circumstances surrounding an employee’s resignation before deciding not to accept their retracted resignation. For example, they may have resigned in the heat of the moment or due to an allegation that you, as the employer, have fundamentally breached the employment contract. Considering the circumstances could help you avoid a potential employment tribunal.

Furthermore, if the resignation was a reaction to another employee’s actions or if there are underlying grievance issues, it is crucial to address these before making a final decision. This approach not only ensures fairness but also mitigates the risk of claims such as constructive unfair dismissal. Always investigate thoroughly and seek to resolve any grievances to maintain a positive workplace environment.

If you need help with understanding employee resignation in England and Wales, our experienced employment lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents for a low monthly fee. So call us today on 0808 196 8584 or visit our membership page.

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