Everyone
Resignation
Find out what happens when an employee wants to leave their job (resign) and how an employer should respond. Learn what happens after an employee resigns, from giving notice to the final day of work.
What resignation is
Resignation is when an employee tells their employer they want to leave their job.
It’s also called ‘quitting’, ‘giving notice’ or ‘handing in your notice’
When an employee can resign
An employee can resign at any time. This includes if they’re on leave or annual holidays.
It’s a bit different for fixed-term employees and employees who work casual hours.
If an employee is resigning because of issues in the workplace, there are some things they may want to do before they resign.
Fixed-term employees
A fixed-term employee must resign when they:
- have a fixed-term employment agreement for an agreed period of work, and
- want to leave before their agreed employment end date.
These employees should check their employment agreement first to see if there are any rules around ending their employment early.
If they finish work on the agreed employment end date, this is not a resignation.
Permanent or fixed-term employment
Casual employment
An employee who works casual hours can accept or decline offers of work.
They must resign when they:
- accept an offer of work, and
- want to leave before completing that work.
If they do not accept an offer of work, this is not a resignation.
These employees often have an employment agreement with an employer that covers multiple periods of work. If they want to permanently end the employment relationship with that employer, they can resign at any time.
If there are issues in the workplace
If an employee is thinking about resigning because of an issue in the workplace, they may want to talk to their employer first. The issue might be able to be resolved without needing to resign.
If an employee is feeling forced to resign, they may also want to talk to their employer or get legal advice before resigning.
How to resign
Before resigning, employees should check their employment agreement. It will usually say:
- who they need to tell about their resignation, for example, a manager, team leader or HR
- how much notice to give, and
- how to resign (most agreements say to do this in writing).
The employment agreement may also have rules around working for another employer once the current employment has ended. For example, the employee cannot work for another, similar, employer for a certain period of time.
Step 1 - Work out how much notice to give
The notice period is the length of time between:
- the day the employee tells their employer they are resigning, and
- their last day of employment (the end of the notice period).
Most employment agreements usually say how long the notice period must be, for example, 4 weeks. If the agreement does not say what the notice period is, the employee must give ‘reasonable notice’.
The employer and employee can agree to make the notice period shorter or longer. Any agreed change to the notice period should be recorded in writing.
Resigning while on parental leave
If an employee resigns while they’re on parental leave:
- their last day of employment is the day their parental leave started, and
- they must give at least 21 days’ notice before their parental leave ends, unless their employment agreement has a longer notice period.
What happens while on parental leave and your return
Resigning while on defence force volunteers leave
If an employee resigns while they’re on certain types of defence force volunteers leave:
- their last day of employment might be the day their leave started — it depends on the situation, and
- they must give a set notice period — it depends on the type of leave they’re on.
Step 2 – Provide the resignation in writing
It’s best to put the resignation in writing, even if the employment agreement does not say to do this. This means there’s a record of it which can help to avoid any misunderstandings.
Sending an email or giving a short letter are the most common ways to resign.
The email or letter should include:
- that the employee is resigning, and
- the employee’s last day of employment (based on the notice period).
The employee does not have to say why they’re resigning unless they want to.
Employees can use this resignation letter template to help.
How an employer can respond to a resignation
An employer must accept an employee’s resignation.
It’s good practice for the employer to acknowledge the resignation in writing. Employers should respond to confirm:
- they’ve received the resignation
- what the last day of employment will be (based on the notice period), and
- if there’s anything that needs to be done before the employee leaves, for example, handing over work and returning company property.
The employer’s response can also include:
- whether the employee is expected to work during all or part of the notice period
- that final pay will be calculated and paid
- whether they will provide a statement of service or reference.
If the employer has any concerns about the circumstances of the resignation, they should talk to the employee as soon as possible. In some situations, the employer or employee may want to get legal advice.
What happens after an employee resigns
After an employee resigns, they will work through their notice period, unless they have agreed to a different arrangement with their employer.
There will be tasks the employer and employee need to complete on the employee’s last day. The employer will also need to sort out the employee’s final pay.
It’s important to check whether there are any workplace policies about resigning. These may explain what’s expected when leaving the workplace.
The employer and employee must also continue to meet their employment rights and responsibilities. Some of these will continue after the employment ends. For example:
- the employer must continue to keep the employee’s personal details private
- the employee must continue to respect the employer’s confidentiality and not share private work information.
During the notice period
During the notice period:
- the employer and employee should agree a plan for managing work and responsibilities
- the employer must pay the employee correctly
- the employee can take leave and holidays in the usual way, for example, sick leave or annual holidays.
The employer and employee could also agree to another arrangement instead of the employee working the notice period. For example, An agreed period when an employee remains employed and receives full pay but does not go to work.
Starting a new job during the notice period
If the employee wants to start a new job before their notice period has finished, they should:
- check their employment agreement first, and
- talk to their current employer as soon as possible.
The employee cannot start a new job if the employment agreement has a clause about secondary employment. This clause will say that the employee cannot have more than one job at the same time. There must be a genuine reason for this clause.
If the employment agreement has a clause like this, the employee can still talk to their current employer. The employer can still agree that the employee can start a new job.
If the employment agreement doesn’t have a clause like this, the employee should talk to their current employer. Both parties should consider all the circumstances and act in good faith.
If the employee has 2 or more jobs, it could also affect how much tax they pay.
Employee rights and responsibilities
Secondary tax codes — Inland Revenue(external link)
Final pay
When an employee resigns, their last pay must include their:
- final wages
- holiday pay, and
- any other payments they’re owed.
Last day and reference
On the employee’s last day, the employer and employee both have tasks they need to complete. For example, organising to return company property or setting up ‘out of office’ messages.
The employee can also ask for a statement of service and a reference. The employer should provide a statement of service. They do not have to provide a reference unless they’ve agreed to this.
Resignation in the heat of the moment
Resignation in the ‘heat of the moment’ is when an employee is upset or angry, for example after an argument, and:
- resigns, or
- says something that makes it sounds like they are resigning.
Afterwards, once they have calmed down, they might change their mind.
What to do if an employee resigns in the heat of the moment
If an employee resigns in the heat of the moment and then changes their mind, they should:
- speak to their employer as soon as possible, and
- clear up the confusion.
If an employee resigns in the heat of the moment, the employer should check with the employee that they meant to resign. They might want to give the employee a cooling-off period before checking in with them.
In these situations, it might not be appropriate to rely only on text messages. This is because they can be open to interpretation.
Example - Employee walks out of work
Sonja has an argument with a workmate and leaves work angrily saying, “I’m out of here”.
Her manager Vivian calls her later that day and asks what happened. Sonja, still angry, tells her about the argument and that she is thinking about leaving due to the bad atmosphere. Vivian tells her to take a day to think about it and get back to her.
Vivian calls Sonja again the next day and asks if Sonja still wants to resign. Sonja says that she doesn’t and asks Vivian to help resolve the bad working relationship with her workmate.
Sonja returns to work the next day, and Vivian makes a plan to help Sonja and her workmate sort out their issues.
Withdrawing a resignation
If an employee has resigned but later changes their mind, they can ask to withdraw their resignation.
Their employer does not have to agree. But whatever they decide, they should respond to the employee in writing so there are no misunderstandings.
If an employee feels forced to resign
If an employee feels they have no choice but to resign, it could be considered constructive dismissal.
Constructive dismissal is a type of unjustified dismissal. If an employee believes they have been constructively dismissed, they can raise a personal grievance.
For more information about constructive dismissal, go to: