Suggested Resignation vs. Termination

System · June 2005

We are in the process of terminating a leadership posititon, and are going to give the employee the opportunity to resign. Does anyone have a sample letter form, that I can have prepared if the employee will resign. I haven't had one of these before, and need all the advice that I can get. It can be faxed to me or emailed.

System · June 2005

Are you terminating the position, meaning the essential functions of that position are no longer needed? Or (I know, I'm beginning my sentence with a conjunction) are you downsizing and floating the essential functions to other positions? I don't think I'd make a prepared letter of resignation. If you meet with the employee and tell him/her that the position is being eliminated, the employee may want to stay while he looks for another job. If you're giving the employee no notice, I suspect you'll offer some severance. Is this really a ploy to get rid of an employee?

Cheryl S SPHR · June 2005

Your prepared letter can be simple:

TO:
FROM:
SUBJECT: Resignation
DATE:

Per our discussion, I am resigning my position as (TITLE) effective (DATE).

LivindonSouth · June 2005

I too have never heard of 'terminating a position' and 'giving the individual an opportunity to resign'. Why would he/she want to resign? Of the several reasons to NOT do that, there is the issue of possibly forfeiting Unemployment Insurance, or at minimum, delaying it while the events are sorted out. If my position were being eliminated, I certainly would not resign. That would be awkward to explain in future interviews.

If you are, however, terminating (firing) an individual, you do have the option of offering to let him resign. We've discussed this at length on the Forum, and can do it again; but, generally I feel that is not a good idea.

In either event, I don't know of a letter to use for your purpose. Perhaps you could clarify.

System · June 2005

Sorry, I said it wrong, we are not eliminating the position, we are terminating the employee. Very sensitive area. We have been through all of the counseling, and our attorney has advised to terminate the employee. Sorry, I missed that forum, I will do a search

System · June 2005

ok, my search has not turned up anything. Let me further explain the situation. The employee has used company credit inappropriately. Also, investigation has revealed asking for drug screen kits before submitting to random drug screens. (We are are a A & D rehab clinic)

Long ago, before my HR days, a fellow coworker was asked to resign his position, and the company offered him severance pay if he would sign a statement saying he would not bring any legal action against the company. I haven't heard or seen this sense. I do not know all of the details surrounding his termination/resignation. Is this a common practice and if it is, can anyone direct me to a similar type situation? Thanks for any advice I can get.

ritaanz · June 2005

Why would you want to give this person the choice to resign? It is apparent he violated company rules. Sit him/her down, give them the facts and then show 'em the door.

System · June 2005

This employee represents our organization to the public, and we are hoping to minimize the any negativity that the employee may exhibit to her community contacts.

System · June 2005

Normally, I am quiet on issues in the Forum. But, this matter sounds clear. You should terminate based upon the clear facts and particularly if the offense is one whereby you would terminate anyone else. A resignation may be something that you feel may help the employee with future jobs, but I contend that you then enter into all kinds of issues from unemployment compensation claims to defending a resignation in lieu of termination as becoming a practice that could kick you later. Call it as it is and terminate. Remember, truth and fact are the best defenses you have.

System · June 2005

Here's another thing I see. Why are you offering severance and a signed letter that she won't sue? What would be the basis of the suit? Unless you're discriminating, retaliating, or conducting some other illegal act in the termination, proceed with the termination. Don't cloud the issue by trying to cover your own or by trying to be proactive against bad publicity.

LivindonSouth · June 2005

I'm going to disagree with Ritaanz and ColonialAvenue. But, for one reason only, and this is maybe the only time I would favor allowing resignation. You made it clear that termination could conceivable result in damage to the company in some manner. If you guys really think that is a possibility, I'd weigh that and go with resignation. Close call. But, if allowing resignation is thought to be in the company's ultimate best interest, I'd have to consider that. And none of us can make that sideline call long distance. Only company officials can.

ritaanz · June 2005

Man, she's fired for cause and you are worried about negative feedback? That is exactly what you will get if you allow her to resign.

System · June 2005

Bad PR comes typically when you mishandle a situation. If you are on thick ice, I say the credibility you gain internally and externally by acting rather than wimping out on a resignation is much better. Outsiders will understand and appreciate credible, firm action, particularly if the situation is such that the integrity of your business processes and drug testing procedures have been compromised.

LivindonSouth · June 2005

'Bad (negative) PR' is the outcome of any number of situations/actions/events and is certainly not limited to 'mishandling a situation'. The company, and only the company, must evaluate the entire situation and make a judgement call. One of the questions it must ask, in either scenario, is, "What is the very worst thing that can happen if we...."

You simply cannot offer or expect a 'canned best answer' in such situations. I could see it going either way.

marc · June 2005

I am also going to support the idea of allowing the resignation. The company is interested in combining the resignation with some sort of language that will keep this EE from causing harm in the community - circumstances under some sort of confidentiality agreement. For that sort of language, I would get the company's attorney involved.

I would also keep all this documented in the event that the EE breaches the agreement.

Gillian3 · June 2005

Allowing a resignation in lieu of termination is fairly common and always generates controversy about what is the right thing to do vs. the benefits of resignation. Attorneys often recommend resignation because they are weighing the risks that are involved - most often the risk of a lawsuit for unlawful termination. That, by itself, creates lots of unwelcome attention and is made worse if the employee has ammunition that will be brought out in the lawsuit. This has to be an internal decision made with legal advice.

Shadowfax · June 2005

If you have cold hard facts AND your atty guranteess he can win the wrongful discharge suit, AND he will hold you harmless for all of the admin and production time lost responding too, searching for and worring over discovery required in a lawsuit when it comes, go ahead and terminate. But, if your atty won't gurantee, then offer some severance, get a confidentiality agreement -for the community issues - and a complete release of all claims. You are not thinking about the ee as some have suggested, you are thinking about the er and if the er can spend a few thousand dollars and get peace and favorable, or at least neutral PR, then it is the best few thousand you will spend. I don't care how 'right ' you may be, juries are looking for someone to blame, and it usually ins't the ee.

dchr9203 · June 2005

I would let it be what it is; a termination. If it makes the employee feel better to say they resigned, then let them give you their own letter. But as for your company documents, if its a termination, then it needs to be documented as such. I think "allowing" employees to resign after they've been told they are going to be terminated undermines your employment practices and in the end really doesn't change the truth; which in my experience is always better to abide by anyway.

Gillian3 · June 2005

It isn't an issue of what the employee thinks, what HR thinks, what the public thinks, or what other employees think. It is a decision based on "what is the best business decision".

Shadowfax · June 2005

AMEN. And some of you will spend a whole lot of yur er's time and money proving how right you were
and defending you 'truthful' logic. The fifty thousand your co. spends defending itself has the same effect on the bottom line, right or wrong. Think like a business man and spend it as if it were yours. There is not always wisdom in being 'right'. I'd settle for sensible, or reasonable 99% of the time.

LivindonSouth · June 2005

Where's that 'embracing emoticon'? I'm square in the corner with G3 on this one. Or did he join me in my opinion? No difference. Make a note please!

marc · June 2005

Noted:

"In the late Spring of 05, LivinDon and G3 shared the same opinion."

Let the above event be noted in a banner on the Forum home page - immortalized!

Leslie · June 2005

I was going to weigh in on the side that if you have the documentation and reason to discharge, do so. The only time we've allowed someone to resign in lieu of discharge was when there was a management change. However, G3, Shadow & Livindon are making some pretty compelling arguments. Is your worry a law suit or the bad press from the individual?

System · June 2005

You know. This is what is good about these exchanges. Different approaches turn into some good decisions. A good and balanced argument has been made on this issue. Now, I wonder what the ultimate decision will be after all of this input.

System · June 2005

Yes, indeed alot of good points you all have made. I will sleep on this tonight, and must follow through tomorrow. I do appreciate the discussion and I'll report after a few ZZZZZ's.

System · June 2005

Yes, these exchanges are the best ones when even folks who have been in HR for a long time gain different perspectives. I would throw one more tangent out there. If you allow the employee to resign, you should construct the letter yourself. Suppose your unemployment agent asks for a copy of the resignation letter and the employees says "I resign my position . . . . . to pursue another career opportunity" and then does not become employed for some time. Our agent asks for a copy of the separation letter. Will it make a difference in whether or not you pay the unemployment claim? If so, does it matter to the firm?

HRinChattown · June 2005

I have had a name change, but wanted to let you all know the outcome of this. The termination was completed with allowing the resignation and a non disclosure release. Thanks again for all of your input. The forum is a great thing!

Suggested Resignation vs. Termination

Comments