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11 February 2026

Misunderstood resignations and how to avoid them

Employee resignations may seem straightforward, but unclear intent can quickly turn them into complex legal and operational challenges. While most resignations are genuine and voluntary, employers sometimes encounter situations where an employee’s true intention is unclear.

Where a resignation is not genuinely voluntary, it may legally be characterised as a dismissal. This can expose employers to unfair dismissal or general protections claims under the Fair Work Act.

Misunderstandings around resignations can also disrupt operations, affect team morale, and create unnecessary legal and operational risk. A structured, cautious approach helps Queensland employers manage resignations effectively and minimise exposure.

Step 1: Be alert to early warning signs

Before accepting a resignation at face value, consider whether there are any indicators that the employee’s intention may not be clear. Common red flags include:

  • Abrupt resignations without prior discussion
  • Resignations made in the heat of the moment, particularly following conflict, pressure, or disciplinary discussions
  • Vague or non-specific reasons, such as “personal reasons”
  • Ambiguous communications, including informal messages like “I’m leaving”
  • Inconsistent conduct, where an employee appears disengaged and then suddenly highly engaged
  • Mixed signals after notice, such as continuing to work as normal, expressing doubt, or attempting to retract the resignation in writing

Where these indicators are present, employers should pause and seek clarification before treating the employment as ended. It is important not to treat an emotional statement as a resignation.

A cautionary example: An employee ‘resigns’ in an emotionally charged text

In a recent Fair Work Commission decision, a hospitality worker’s brief and emotionally charged text exchange was initially treated by the employer as a resignation.

The exchange occurred after the company director suggested the employee be moved to casual employment because he was “not meeting his 38 hours per week”. The employee responded that he would never agree to casual employment, would return his wristband, keys, and uniforms, would not attend work the following day, and stated that he did not deserve “this kind of disrespect”.

When questioned, the employee maintained by text that he had not resigned and tried to forward a medical certificate. The director replied that they would not be paying the week’s salary due to no notice given and said “you resigned first. Bad luck”.

The Commission held that this response did not clearly establish a voluntary resignation, particularly given the absence of any cooling-off period or follow-up confirmation. The decision highlights the risks of accepting an impulsive or emotionally charged statement as a resignation without proper verification.

Step 2: Clarify intent through clear communication 

Open, professional communication is critical to avoiding misunderstandings. If you believe an employee has resigned, consider the following actions:

  • Request a conversation (in person, by phone, or via video) to discuss the resignation
  • Ask open-ended questions to confirm whether the employee genuinely intends to resign
  • Allow time to reflect if the resignation was given during an emotional or heated exchange
  • Remain neutral and professional, avoiding assumptions or pressure

Taking time at this stage can prevent a resignation later being characterised as a dismissal.

A Fair Work Commission decision in August 2025 highlights the importance of this step. In this case the Commission found that text messages stating “I’m leaving, I’m done” were not sufficiently clear to establish a voluntary resignation.

The employee had been subjected to alleged ‘threatening behaviour’ whilst on shift and in messaging his manager, the Commission noted that the phrase could equally mean the employee was leaving his shift that night, rather than ending his employment. Because the statement was ambiguous and not unequivocal, the Commission held the employee had not resigned, and the employer’s later action amounted to a dismissal.

 


 

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Step 3: Confirm and verify the resignation 

Once the employee’s intention is clear, take steps to formally verify the resignation:

  • Request written confirmation of the resignation, including the intended last working day
  • Check notice periods to ensure compliance with contractual and statutory requirements
  • Confirm key details in writing, including final working day, handover arrangements, and outstanding entitlements
  • Consider retention options, where appropriate, such as flexible arrangements or alternative roles

Written confirmation is often the most persuasive evidence that a resignation was voluntary.

Mental health considerations 

If a resignation occurs after a stressful event, workplace conflict, or during an ongoing health issue, employers should consider the following:

  • Ask whether the employee is experiencing stress or mental health concerns and whether they need support or time to consider their decision
  • Allow a reasonable cooling-off period before accepting the resignation, particularly where the employee is distressed or emotional
  • Offer support options, such as Employee Assistance Programs (EAP), flexible work arrangements, or a short leave period to seek medical advice
  • Consider whether the resignation could be a response to workplace conduct (e.g., bullying, harassment, unfair treatment). If so, consider pausing resignation acceptance pending an investigation
  • Document the conversation and the employee’s stated reasons, while respecting privacy and confidentiality
  • If appropriate, request medical evidence (with consent) or a return-to-work plan, particularly where mental health issues are disclosed
  • Ensure any changes to role, hours, or workplace arrangements are clearly communicated and recorded, to avoid misunderstandings

These steps help ensure the resignation is genuinely voluntary, reduce the risk of later claims, and demonstrate that the employer acted fairly and responsibly.

Step 4: Take practical and protective steps 

After a resignation has been confirmed:

  • Plan the transition early, including knowledge transfer and workload redistribution
  • Document all communications and decisions relating to the resignation
  • Maintain professionalism, even where the resignation is inconvenient or unexpected

Resignations can look routine, but when intent is unclear, risk escalates quickly. Acting too fast or making assumptions can turn a resignation into a legal problem. By recognising warning signs, confirming intent, and documenting each step, employers can reduce exposure and handle resignations with confidence.

How can Business Chamber Queensland help?  

Business Chamber Queensland’s Workplace Advisory team can provide practical, real-time support to help employers confirm resignation intent, manage risk, and respond appropriately. From clear policies and manager training to case-by-case advice, our team can help your business handle resignations consistently, confidently, and in line with workplace laws.

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By Melissa Inglis
Workplace Relations Consultant

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