Handling Prompted Resignations

A "prompted resignation" is a resignation that appears to be voluntary on the surface. However, the idea or motivation for the employee to resign came from somebody else, usually the person's boss.

In some cases, the employee expresses the wish to resign rather than to be fired. In others, you may offer the opportunity to resign, so you don't have to fire the person, so you don't have to document the situation extensively, and/or so you can avoid additional time and costs.

When it's better for you if an employee resigns. In general, it's better for you if the employee resigns. An employee who wants a job reference that says he or she resigned, rather than a reference that shows he or she was fired, is less likely to sue you. He or she is also less likely to file for unemployment benefits, since these benefits aren't paid for voluntary resignations. However, it's always possible that the worker could change his or her mind and story sometime in the future, so be sure you treat the prompted resignation as if it were a firing for your own internal records.

When can an employee resignation cause problems? In some cases, workers resign because they believe they are being forced out, harassed, or treated unfairly for unlawful reasons. It's important to uncover these situations in advance, so that you can begin to prepare a defense if a lawsuit is ultimately filed. For that reason, it's advisable that you conduct an exit interview and/or have the worker fill out an exit questionnaire whenever someone leaves your employ.