It happens from time to time: an employer offers an employee an opportunity to resign instead of being laid off. Seems like the employer is doing a nice thing – allowing the employee to “save face” by resigning rather than going through the indignity of being let go. But appearances can be deceiving. All else being equal, when presented with this option, you should not resign. Rather, it is time to negotiate.
Just because your employer asks you to resign, that does not mean that you have to. Assuming you are an employee at will, quitting is entirely up to you. You can (but don’t have to) quit at any time for any reason. Similarly, an employer can terminate you at any time for any reason. Think about that for a moment – your employer has the power to fire you at any time for any reason, yet they are asking you to quit. Seems weird, right? That’s because it is.
Before you accept your employer’s offer to resign, consider asking these questions first:
1. Why do you want me to resign?
2. Will the company oppose my application for employment?
3. How will reference requests be handled?
4. Am I getting severance?
5. Is there an agreement for my attorney and me to review?
Reasons not to quit:
1. You might have valid discrimination claims against the company. Most employment discrimination lawsuits require that you suffer an “adverse employment action” in order to sue. An adverse employment action is something that the employer does to make your employment worse (i.e. fire, suspend, demote, etc.). If you quit, though, the adverse employment action was committed by YOU, not the company. It is pretty hard to argue that you were fired because of your race, age, gender, etc. if you voluntarily resigned.
2. You might be denied unemployment. Generally, employees who quit of their own accord do not get unemployment. Money matters; if nothing else, by resigning, you may be giving up your right to collect unemployment, whereas if you are laid off, you likely will get unemployment benefits.
3. You are not getting anything. There is an inherent quid pro quo to the employer- employee relationship. Why are you going to give the company something (by quitting), for nothing? You do what the employer asks you to do for pay. Quitting is no different.
What an employment lawyer can do for you:
Disclaimer – I’m biased. I help employees end their employment relationships (good and bad) all the time. Employment lawyers can help you in several ways. Below are just a few:
1. Negotiate Severance. This firm specializes in severance. Why not get some money on the way out in exchange for the promises that go along with your agreement to resign?
2. Negotiate References. Whether you resign or your employment is terminated, it is critical to have some control over how the end of your employment is communicated to potential employers. We can help you with this and get agreed-upon terms for how your employment is described to others.
3. Negotiate other Benefits. Leaving employment has many factors other than just severance pay and references. We can help negotiate your insurance coverage, stock options, end date, transition assistance, and application for unemployment. Our goal as employment lawyers is to assist you in a seamless transition from your old job to your future. If you are being asked to resign, contact us today to schedule a consultation.