This presentation by Employsure provides an overview of employee resignation. It covers - Receiving a resignation notice. - Unintended resignation. - Constructive dismissal. - Resignation withdrawal. It helps employers understand what to do when they receive a resignation letter, how to proceed in the case of an unintended resignation or resignation withdrawal and outlines the essentials of constructive dismissal. This presentation is designed to help employers understand their rights and obligations. It's often a challenge for owners and managers of SMEs to ensure they are compliant. Small businesses sometimes struggle to understand their obligations to employees and that's where Employsure can help. Employsure protects employers from risks by providing unlimited advice, legally compliant documents, insurance and representation. Employsure is a workplace relations specialist dedicated to helping small businesses succeed by creating fair and safe workplaces. Call us: 0800 675 700 Visit us at: https://employsure.co.nz/ LinkedIn: https://au.linkedin.com/company/employsure-nz Facebook: https://www.facebook.com/EmploysureNZ/ Twitter: https://twitter.com/EmploysureNZ

2. Employee resignation
This presentation covers some important topics
about employee resignation. For more detailed
information about your obligations as an
employer, visit Employsure.
Topics covered
• Receiving a resignation notice.
• Unintended resignation.
• Constructive dismissal.
• Resignation withdrawal.

3. The end of an employment relationship
An employment relationship may be ended through:
• Redundancy
• Termination
• Resignation
All these require formal steps to be taken by employers in
order to avoid potential personal grievance claims.
The form of resignation required by employees should be
clearly stated in the company employment agreement. A
formal letter is standard practice.

4. Notice of resignation
After receiving an official resignation notice from an
employee, an employer must:
• Confirm the notice period in the employment agreement.
• Formally accept the resignation of the employee.
• Using the employment agreement and any legal
guidance to calculate the final pay of the employee.
• Collect property of the company.

5. Unintended resignation
Occasionally a situation may occur where an employee
and employer engage in a heated discussion and an
individual may say that they are resigning.
If an employee doesn’t specifically say they are resigning,
their actions, such as leaving the work premises, might be
interpreted as a resignation.
In these situations it is important to be clear as to whether
or not a resignation has occurred. Employers are advised
to allow at least 24 hours before raising this question with
the employee.

6. Raising the question
After a resignation occurs in the heat of the moment like
this, an employee may:
• Withdraw their resignation and confirm they did not
intend to resign.
• Confirm they did wish to resign, in which case a formal
resignation letter is required.
Incorrectly assuming an employee has resigned without
confirming this in writing can be an expensive mistake
and can lead to a claim of constructive dismissal.

7. What is constructive dismissal?
In cases where an employee feels their resignation
was the only choice they had left to resolve a
particular issue, they may claim a constructive
dismissal.
A constructive dismissal occurs if an employer’s
actions, or lack of actions, have made working life so
unbearable that an employee is forced to resign.

8. Categories of constructive dismissal?
There are three categories which broadly define constructive dismissal:
• An employee given a choice between resigning, or being dismissed.
• The employer deliberately acting to pressure the employee to resign.
• The employer has acted so poorly towards an employee (by treating the employee highly
unfairly) that the employee feels remaining in the job is no longer an option.
In determining whether or not the termination of employment has been a constructive dismissal, it
is not necessary to want the employee to resign.
Ultimately it comes down to whether the employer’s actions, caused the employee to resign, and
whether the resignation was foreseeable.
A constructive dismissal does not need to be a result of one particular incident, it can be a series of
actions or inactions.

9. Examples of constructive dismissal
Examples of constructive dismissal:
• An employee resigning after being maliciously told to perform
unpleasant or menial work.
• An employer failing to pay the employee’s wages on multiple
occasions, or paying them late.
• A significant reduction in work hours of the employee, following a
decision made by the employer with no consultation or agreement.

10. Personal grievance
• Where an employee feels their dismissal has been a
constructive dismissal they could raise a personal
grievance.
• If an employee intends on claiming constructive dismissal,
as outlined in the process of a personal grievance, they
need to claim within the 90 day period.
• Given a constructive dismissal can be due to a series of
actions, or inactions, this 90 day period can be difficult to
determine.

11. Preventing constructive dismissal
A employee is free to claim constructive dismissal but
ultimately the Employment Relations Authority will decide
whether this has taken place.
How to prevent constructive dismissal:
• Provide a platform where employees can discuss
aspects of their work that are uncomfortable or
stressful.
• Attempt to address these issues and document any
actions taken.

12. Resignation withdrawal
It is not uncommon for employees to resign in writing
and later withdraw the request following a discussion
with an employer, or further thought.
Employers can decide whether to allow this to be
withdrawn and to let the employee continue on with
work, or whether to refuse the withdrawal of the
resignation.
Regardless of which choice is made by an employer,
the outcome should be communicated in writing to
ensure no misunderstandings exist.

13. Next steps
• This presentation has answered some key
questions about employee resignation and
constructive dismissal.
• For tailored advice, contact Employsure on
0800 675 700 to speak to a workplace
specialist.