Cessation of an employee’s employment can happen by way of termination of employment by the employer or resignation by the employee. In the case of a voluntary resignation, while the employer may feel as though it is losing a beneficial employee, the upside is that the employer is not liable for the dreadful “reasonable notice of termination”. This blog discusses some of the best practices for employers when handling a resignation.
In Kielb v. National Money Mart Company, a dismissed employee sought to have the termination and limitation clauses in his employment agreement found unenforceable. His goal was to recover his bonus for the year during which he was terminated, as well as his contractual pay in lieu of notice, which he waived, in accordance with his employment contract, when he refused to provide Money Mart with a full and final release after his termination.
It can be surprisingly difficult for an employer to rely on statements such as “I quit” to establish that an employee resigned, particularly if the employee later indicates that they want to return to work. Courts require proof of a clear intention to resign in order to find that an employee terminated their employment. While the statement “I quit” may seem clear, courts will inquire into the circumstances in which the statement was made in order to determine whether the employee actually resigned.