Resignation without good reason: Overview, definition, and example
What is resignation without good reason?
Resignation without good reason refers to an employee voluntarily leaving their job without citing a legally recognized or contractually defined reason. Unlike resignations due to workplace misconduct, breach of contract, or unsafe working conditions, a resignation without good reason is a personal choice made by the employee, often without entitling them to severance pay or other benefits.
For example, if an employee resigns simply because they want a career change or dislike their current role, this would be considered a resignation without good reason.
Why is resignation without good reason important?
This concept is important because it impacts an employee’s entitlements upon leaving a job. In most cases, employees who resign without good reason are not eligible for severance pay, unemployment benefits, or other exit compensation. Employers may also impose notice periods to ensure a smooth transition.
From an employer’s perspective, including a resignation without good reason clause in employment contracts can help manage workforce stability, define notice period obligations, and avoid disputes over termination rights.
Understanding resignation without good reason through an example
Imagine an employee working at a marketing firm decides to resign because they want to pursue a different career. Since their resignation is voluntary and not due to employer wrongdoing, they are not entitled to severance pay or legal compensation. They are, however, required to give 30 days' notice as per their contract.
In another scenario, an employee quits a company due to an internal policy change they dislike, even though the change does not violate their rights or contract. This resignation would also be classified as without good reason, meaning they would leave without additional benefits or compensation.
An example of a resignation without good reason clause
Here’s how a resignation without good reason clause might appear in an employment contract:
"An Employee may resign at any time by providing the Employer with [X] days’ written notice. In cases of resignation without good reason, the Employee shall not be entitled to severance pay or additional compensation beyond accrued salary and benefits as of the termination date."
Conclusion
Resignation without good reason occurs when an employee voluntarily leaves their job without citing a contractually or legally justified cause. This typically means they forfeit severance pay and other exit benefits while being required to fulfill their contractual notice period.
By including a clear resignation without good reason clause in employment contracts, businesses can set expectations, ensure orderly transitions, and avoid disputes over termination entitlements.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.