Heat of the Moment Resignations in New Zealand

A 'heat of the moment' resignation is often used to refer to a resignation that is made in response to a workplace conflict. These are typically made verbally and in an abrupt manner without notice. This article will explain the best practice to address when an employee resigns in the heat of the moment.

What Do Heat of the Moment Resignations Look Like?

Heat of the moment resignations often include situations such as:

• where an employee tells you that they are resigning but takes the resignation back very quickly;
• during an emotional outburst where the employee states their intention to resign; or
• an outburst resulting from an argument, but the employee contacts you in an attempt to resolve the situation.

What Are Your Obligations?

The best practice in these situations is to act as a fair and reasonable employer. This means you should allow a 'cooling off period' to the employee before checking what their true intentions are. However, as an employer, you should also consider whether the employee's resignation is objectively considered a valid resignation.

The General Perspective of the Court

The courts generally have found that where employers accept a heat of the moment resignation, employees are able to raise a valid unjustified dismissal claim. This is because, realistically, many of the heat of the moment resignations are made in high-tension situations, and people may say things that they do not actually mean. Part of the reasoning includes that you cannot use a heat of the moment resignation as an opportunity to terminate an employee when it was not their true intention to resign.

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Recent Decision by the Employment Court

In the case of Urban Decor v Yu, it was found that two employees had stated that they quit and left the workplace. The employees were not provided with a cooling off period before Urban Decor had provided dismissal letters. The employees were bringing an unfair dismissal claim and the court was considering whether the employer was required to provide cooling off periods.

In this particular case, the employees had:

• stated that they quit;
• taken their belongings and left the workplace abruptly;
• not returned to work; and
• not indicated that there was an intention to return to work.

On appeal, the employment court stated that an objective assessment should be used as to whether a reasonable employer would have considered the employees to have resigned in those circumstances. It was held that because of the employees' actions, the employer was not obligated to provide a cooling off period.

As a result of this recent decision, it is best practice that you provide employees with a cooling off period after a heat of the moment resignation, where it is clear that the resignation was not intentional. You should use an objective test to make this judgement.

Practical Guidance for Cooling Off Periods

1. Recognise the Situation

Be attentive to signs of emotional distress or conflicts in the workplace that could lead to a sudden resignation. This could include:

• heated arguments;
• sudden outbursts; and
• tense situations in the workplace.

2. Assess the Circumstances

Determine whether your employee's resignation appears to be a spontaneous reaction rather than a deliberate decision. Consider factors such as the employee's behaviour leading up to the resignation, the context of any conflicts, and the tone and language used in the resignation.

3. Initiate Communication

If you choose to provide a cooling off period, approach the employee after this time period has elapsed. You may choose to approach them after a few hours or the next morning, depending on the situation, and request to have a private discussion about their intention to resign. Emphasise that you are seeking to communicate and reflect on the issue openly. You should also try to avoid confronting or accusing the employee.

4. Respect Your Employee's Decision

If your employee decides to uphold their resignation after the cooling off period, respect their choice. You should provide guidance on the resignation process and any relevant exit procedures.

5. Document the Process

It is essential that you keep thorough records of all interactions, discussions and decisions related to the resignation. This documentation can help protect both you and your employee in case of future disputes or legal challenges in the employment relationship.

6. Monitor and Follow Up

If your employee decides not to resign, you should keep a close eye on the employee's well-being and job performance following the resolution of the resignation. Offer ongoing support and check in periodically to ensure that any underlying issues have been addressed and that the employee feels valued and supported in their role.

Key Takeaways

Heat of the moment resignations occur impulsively during workplace conflicts. As an employer, you should recognise signs, like abrupt verbal resignations or emotional outbursts. Best practice involves allowing a cooling-off period for reflection. During this time, you should initiate private discussions with the employee, actively listen, and assess the situation. Additionally, you should respect your employee's decision and provide guidance if they do decide to proceed with resigning.

If you require assistance with managing employee resignations, our experienced employment lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.