Voluntary resignation: Overview, definition, and example
What is voluntary resignation?
Voluntary resignation refers to an employee’s decision to leave their job of their own free will, without being terminated or forced to resign by their employer. It typically requires the employee to provide advance notice and may be subject to company policies regarding final pay, benefits, and exit procedures.
For example, an employee who accepts a new job offer and submits a two-week notice to their current employer is engaging in a voluntary resignation.
Why is voluntary resignation important?
Voluntary resignation is important because it provides a clear and professional process for employees to exit a company while allowing employers to plan for replacements. It also protects both parties by ensuring that the resignation is not due to coercion, wrongful termination, or retaliation.
For businesses, defining voluntary resignation in employment contracts ensures that notice periods, final compensation, and exit responsibilities are clearly outlined, reducing potential disputes.
Understanding voluntary resignation through an example
Imagine a marketing manager receives a job offer from another company. To leave on good terms, they submit a written resignation letter providing 30 days' notice, as required by their employment contract. The company uses this time to find a replacement and ensure a smooth transition.
In another scenario, an engineer decides to resign due to personal reasons but does not provide the required two-week notice. As a result, per company policy, they forfeit their eligibility for a severance package. This demonstrates why voluntary resignation terms should be clearly stated in an employment agreement.
An example of a voluntary resignation clause
Here’s how a voluntary resignation clause might appear in an employment agreement:
“An Employee may voluntarily resign from their position by providing a written notice of [X] days to the Employer. Upon resignation, the Employee shall fulfill all exit obligations, including returning company property and completing any transition tasks as required. Failure to provide the required notice may result in forfeiture of certain benefits.”
Conclusion
Voluntary resignation allows employees to leave their job on their own terms while ensuring employers have time to manage transitions smoothly. Clear policies on notice periods, exit procedures, and final compensation help protect both parties and prevent misunderstandings.
By including a voluntary resignation clause in employment agreements, businesses can establish a structured and professional exit process, ensuring that resignations occur fairly, transparently, and with minimal disruption to operations.
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.