It’s free to join the Victorian Chamber Community!

Sign up and receive the latest business news and updates, opportunities to network and shape Advocacy from Victoria’s largest and most influential partner.

It’s free to join the Victorian Chamber Community!

Verbal 'resignation' leads to unfair dismissal

14 August 2023

The Fair Work Commission (FWC) found an employee was harshly dismissed after expressing his desire to quit in a heated argument.

JUMP TO:
JUMP TO:

The employee claimed he was dismissed by his supervisor after complaining to his general manager over the phone about perceived unfair treatment by the supervisor.

Before the phone conversation the supervisor held an informal discussion with the employee about his ‘attitude’, lateness and performance issues. In a later conversation, the employee and supervisor again disagreed about whether the employee was taking responsibility for his actions.

The supervisor then told the employee that he would “respect your choice” to resign and it “seems that parting ways is the most appropriate course of action”. Shortly after this discussion, the supervisor asked the business administrator to send an acknowledgement and acceptance of the ‘resignation’ to the employee via express post.

The employee had already left the workplace and the FWC considered that it was reasonable for him to conclude that his employment was terminated as a consequence of the conversation with the supervisor.

The decision

However, the FWC found it was unreasonable for the employer to consider verbal comments in the heat of an argument as a valid ‘resignation’.

The FWC also concluded that a reasonable amount of time did not pass after the employee voiced his desire to quit, and that the employer dismissed him by confirming the employment had ended.

This meant that several procedural elements were not followed by the employer, including failing to inform the worker of the reasons for his dismissal.

After finding that the dismissal was harsh and unreasonable, the FWC awarded the worker compensation plus super.

Learnings for business

This case highlights the importance of ensuring that any resignation is delivered in ‘clear and unambiguous’ language and resignations in the ‘heat of the moment’ should be carefully considered.

It is crucial that employers receive resignations in writing where possible and document the process for any contingencies that might arise in the future.

Further, employers should ensure a fair and reasonable process is followed when managing conduct or performance concerns, especially if considering a potential termination of employment.

How the Victorian Chamber can help

The Victorian Chamber’s expert Workplace Relations Consultants have vast experience assisting employers manage dismissal processes and helping decipher whether a resignation may have occurred.

For assistance on any aspect of your employment obligations, please call the Victorian Chamber Workplace Relations Advice Line on 8662 5222.

Workplace Relations Advice Line

Trying to deal with workplace issues alone but don’t know where to start? Before you take any action, call our Workplace Relations Advice Line.

Our experienced team are here to give you over-the-phone advice about human resources or workplace relations issues. Our Employer members have free and unlimited access to expert advice through the Workplace Relations Advice Line.

Fair Work representation

Managing claims in the Fair Work Commission (FWC) can be one of the most stressful and costly issues for your business. With help from our Workplace Relations consultants, you can rest assured our expertise is on your side.

Employment Termination

It is important to manage the termination of an employment relationship carefully to ensure you meet your legislative obligations, regardless of whether the employment contract is terminated by the employer or employee.

Memberships for wherever you are in business

Hard times. Good times. Crunch time. Growth time. We’re here to support you at all those pivotal times in your business life. We’ve now tailored our range of memberships to fit wherever you are in business – today and well into the future.

Memberships for wherever you are in business

Restricted Page

You are being redirected to our login page!