Costly Resignations

George Heron

George Heron

Email Click to email
Phone 01952 566918

7 December 2016

Every dismissal carries some degree of risk and, in the event that a dismissal is held to be unfair, this can result in open wallet surgery. However, case law has highlighted that resignations can also hit employers financially.

One particular case involved an employee who had a strained relationship with her employer. She had intimated on several occasions that she was not happy, she was considering seeking alternative employment and that she may wish to resign. However, the key point to note is that she did not formally tender her resignation.

Upon growing sick and tired of these antics, her employer sought to put pressure on her to resign. Eventually, she did… but then proceeded to issue a tribunal claim alleging constructive dismissal. This claim was upheld, with the tribunal stating that the pressure the employee was put under was “wholly unwarranted”. It awarded the employee compensation of £49,000.

It is essential that any resignation is the employee’s decision and is not the result of undue pressure from the employer. If you have an employee who is making noises about resigning, you must be extremely wary of taking any action which could subsequently be interpreted as influencing their decision. Of course, constant talk of resigning does have the potential to become very disruptive and you do have the option of treating this as a misconduct issue via the usual disciplinary procedures, although care must be taken.

At Alpha, we have a vast experience in providing bespoke, practical advice on HR and employment law issues. This includes providing tailored advice on how to handle difficult employees. We are proud of our commercial outlook and do not sit on the fence. If you would like to have Alpha on your side, please feel free to contact us.


  • Martin Kaye

    Martin Kaye have provided advice in some highly complex HR matters and they continue to provide our day to day HR advice through their "ALPHA" HR scheme. They offer a very commercial and pragmatic approach and we have always been impressed by the level of service. The members of staff are approachable and easy to deal with.

    Eurofilms Extrusion Ltd

  • Martin Kaye

    Martin Kaye have provided us with employment and HR advice for several years and we have been very pleased with the level of service and quality of advice provided. We have no hesitation in recommending the team to any organisation which wishes to manage its employment related enquiries.

    D Wauchope, Company Secretary - McPhillips (Wellington) Ltd

  • Martin Kaye

    As a large employer of cleaning personnel, we require expert and prompt employment related advice. Martin Kaye's "ALPHA" service provides this in a clear and robust manner. We have been extremely impressed with the service and would thoroughly recommend them to any employer requiring expert HR & employment support.

    J Conry, Chairman - JPC Cleaning

  • Martin Kaye

    It is important for us to create a close relationship with our advisors. Martin Kaye's "ALPHA" HR service is excellent. It enables us to work closely with our lawyers particularly in the complex area of employment law.

    Johnny Hobeika, Operations Manager - Sanita (UK) Ltd

  • Martin Kaye

    ALPHA is an excellent, reliable, professional service which is an integrated part of our business that we could not do without.  This service is part of our structure and provides staff and business with the professional HR Support it requires - Invaluable

    Wendy Cox - Genvolt

Martin Kaye are rated 4 out of 5 based on 20 testimonials.