INTRODUCTION
In today's fast-paced and demanding work environments, emotions often run high. Tight deadlines, escalating project demands, and interpersonal conflicts can create moments of frustration, leading some employees to impulsively declare, "I quit!" But once the heat of the moment has passed, can these resignations be considered legally binding? And if so, what are the next steps for both the employer and employee?
This article provides an overview of how Nigerian law views these types of resignations, the legal obligations of both employers and employees, and best practices that can help organizations manage these situations. Whether you are a Human Resources Manager navigating employee relations or an employee considering your options, understanding the legal implications and procedures involved is key to avoiding potential conflicts and ensuring that decisions are made in a fair and lawful manner.
LEGAL FRAMEWORK GOVERNING RESIGNATIONS IN NIGERIA: THE LABOUR ACT AND EMPLOYMENT CONTRACTS
In Nigeria, employment relationships, including resignation process, are primarily governed by the Labour Act1 ("the Act"), the terms outlined in individual employment contracts,2 and established judicial precedents. Nigerian law recognizes and upholds the principle that both employers and employees are free to terminate their employment contracts. Importantly, this principle is rooted in the legal notion that an unwilling employee cannot be foisted on an employer,3 and similarly, an employer cannot be forced to retain an employee against their will. As such, employers do not have discretion over whether to accept an employee's resignation- once the resignation is given, it is generally binding.4
The Labour Act serves as the principal piece of legislation governing employment in Nigeria, establishing the minimum rights and obligations of both employers and employees. One key aspect of this is the regulation of notice periods, which are specified in Section 11 of the Act. The notice period required for termination of an employment contract varies based on the length of employment, as outlined below:
- Up to 3 months of employment: One day's notice is required.
- More than 3 months but less than 2 years: One week's notice is required.
- Between 2 to 5 years of employment: Two weeks' notice is required.
- More than 5 years of employment: One month's notice is required.
The Labour Act also allows either party (the employer or the employee) to waive the required notice period or accept payment in lieu of notice.5 This provides flexibility for both parties to end the employment relationship more swiftly if needed. However, it is crucial to note that notice periods of one week or more must be provided in writing, and the employer is obligated to pay the employee wages until the expiration of the notice period.
In addition to statutory requirements, individual employment contracts often specify the notice period for resignation or, alternatively, provide for salary in lieu of notice.6 In cases where the resignation notice period is shorter than what is stipulated in the employment contract, the resignation may still be considered effective immediately. However, the employee will not be entitled to terminal benefits if the resignation does not comply with the contractual notice period.7 Even though the resignation takes effect immediately, the employee may still be required to pay for any shortfall in the notice period, for instance, through salary in lieu of notice.
Verbal Resignations and Heat-of-the-Moment Decisions: Legal Perspectives Under Nigerian Law
Nigerian law does not prescribe a specific format for resignations. Resignations may be delivered either orally or in writing, unless a particular employment contract stipulates otherwise. This flexibility raises an important question: how should oral resignations made impulsively, such as during a heated argument, be treated? While Nigerian law does not specifically address "spontaneous" or "heat-of-the-moment" resignations, general legal principles governing the termination of employment contracts can help assess the validity of such decisions, considering the circumstances in which they occur.
Under Nigerian labour law, a resignation is generally valid, and this can be interpreted to include oral/verbal or spontaneous resignations, even if they occur without the required notice period or payment in lieu of notice.8 Employers no longer have the prerogative to refuse an employee's resignation for any reason.9 Once an employee resigns, the resignation is legally binding, and the employee cannot unilaterally withdraw or revoke it without the employer's consent.10 However, if an employee attempts to retract a resignation made impulsively or in the heat of the moment, the employer is under no obligation to accept the retraction. In such cases, the retraction may be treated as a new offer of employment, which the employer has the discretion to accept or reject.11
Constructive Dismissal: An Important Consideration
An additional, often overlooked consideration is constructive dismissal. This occurs when an employee is forced to resign due to an employer's unreasonable conduct that has made continued employment intolerable. The issue here revolves around the element of involuntariness. If an employee feels compelled to resign due to the employer's actions—such as creating a hostile work environment or breaching the employment contract—the resignation could be considered constructive dismissal.12 While Nigerian law does not explicitly define constructive dismissal in its statutes, the concept is rooted in general legal principles and has been addressed in various judicial precedents. Employees in such cases may argue that their resignation was not voluntary but was instead the result of the employer's actions, such as oppressive behaviour, failure to address workplace issues, or breach of contract.13
If an employee can prove that the employer's conduct created an unbearable working environment or violated the terms of their employment, the employee might be entitled to remedies, including damages or compensation.14 The Nigerian courts have begun recognizing constructive dismissal claims as a vital mechanism to protect employees from unjust or unfair treatment by employers. Insights From the United Kingdom In the United Kingdom (UK), the legal framework surrounding "heat-of-the-moment" resignations is well established and evolving. Generally, when an employee tenders their resignation, the law does not grant them an inherent right to unilaterally retract it at a later time.15 However, recent judicial interpretations suggest that employers may be required to allow employees to withdraw resignations made impulsively, provided the employee is given the opportunity to reflect on their decision.
In the case of The Sothern v Charlesly & Co,16 an office manager at a law firm verbally declared, "I am resigning", during a partnership meeting. Later, the office manager claimed that he had not intended to resign. The Court of Appeal ruled that, generally, employers are entitled to rely on unequivocal statements of resignation unless there are exceptional circumstances. These circumstances include factors such as the immaturity of the employee, a decision made in the heat of the moment, or if the resignation was prompted by the employer's actions.17 The court concluded that the office manager's statement, "I am resigning," was clear. Therefore, the employer was not obligated to further scrutinize the employee's intent. This ruling reinforced the principle that once a resignation is clear and unequivocal, it is legally binding, even if it was made impulsively or without full consideration.
However, a more recent case, Omar v Epping Forest District Citizens Advice,18 highlights the complexities surrounding impulsive resignations and the importance of employers assessing an employee's state of mind. In this case, Mr. Omar resigned during a heated exchange with his employer but later sought to rescind his resignation. His employer upheld the resignation, leading to claims of unfair dismissal before the Employment Tribunal. Initially, the Tribunal ruled that Mr. Omar had indeed intended to resign. However, on appeal, the Employment Appeal Tribunal (EAT) reversed the decision. The EAT emphasized that a prudent employer should carefully evaluate whether the employee genuinely intended to resign at the time of the resignation, especially in cases where the resignation might have been made impulsively or under emotional stress.
Best Practices for Employers (including Human Resource Managers) and Employees
Lessons for Employers
Here are key lessons for employers:
- Clarification and Cooling-off Period: When an employee resigns impulsively, employers should not consider the resignation final immediately. Requesting a formal resignation letter and offering a cooling-off period (24 to 48 hours) allows the employee time to reflect and reconsider the decision.
- Understanding Context: Employers should assess the circumstances surrounding the resignation. If the resignation was made during a stressful or emotional moment, evaluating the employee's emotional state and past behavior can help determine whether it reflects their true intentions or was a reaction to the moment.
- Communication and Documentation: Clear communication and thorough documentation are crucial. Employers should document the entire resignation process, including the initial resignation statement, follow-up discussions, and final decision. This ensures clarity and protects both parties if a dispute arises later. Additionally, employers should be open to resolving grievances that led to the resignation, as this could help retain valuable talent.
- Review Employment Contracts and Policies: Employers should ensure that employment contracts and company policies clearly outline resignation procedures and notice period expectations. For instance, Employers may develop a clear process for handling resignations, including whether and how a resignation may be withdrawn. Regularly reviewing these documents helps prevent misunderstandings and ensures legal compliance.
- Prepare for Constructive Dismissal Claims: Employers must be aware that employees can claim constructive dismissal if their resignation is a result of the employer's actions creating a hostile or intolerable work environment. Employers should take proactive steps to avoid creating such conditions.
Lessons For Employees
Handling a resignation, especially one made impulsively, requires careful thought to ensure the decision is well-considered and legally sound. Here are key lessons for employees:
- Take Time to Reflect: Avoid resigning immediately during a heated moment. Give yourself time to cool off and think through your options carefully to ensure your decision aligns with your long-term goals.
- Understand Your Contract: Familiarize yourself with the terms of your employment contract, the company's policies, and the employee handbook, especially the clauses related to resignation and notice periods. Understanding your legal obligations and rights can help prevent loss of terminal benefits and reduce the risk of disputes with your employer.
- Document Your Resignation: If you decide to resign, do so in writing. A formal resignation letter provides clarity and serves as an official record of your decision. Ensure the letter includes the date, your intended last working day, and adheres to the notice period specified in your contract. Also, make sure your resignation is acknowledged by the appropriate person or department.19
- Know Your Rights: Be aware of your legal rights as an employee, including protection against unfair dismissal and constructive dismissal. If you feel pressured to resign due to intolerable working conditions or employer conduct, seek legal advice.
Conclusion
Navigating spontaneous resignations requires a careful balance between legal obligations and emotional intelligence. Employers must consider the context in which a resignation occurs, offering cooling-off periods and ensuring clear communication to avoid hasty decisions becoming permanent. Employees, in turn, should be mindful of their rights and responsibilities, taking time to reflect before resigning and ensuring any decision is well considered and properly documented.
As Nigerian labour law continues to evolve, it is crucial for both employers and employees to learn from international practices and local judicial precedents to adopt best practices for handling impulsive resignations. For more information or personalized guidance, please reach out to us at www.scp-law.com.
Footnotes
1 Chapter L1, Laws of the Federation of Nigeria, 2004. The Labour Act is the principal legislation regulating employment in Nigeria and sets the minimum terms and conditions of employment. From a legal perspective, there are two broad categories of employees in Nigeria: "Workers", who are defined under the Labour Act as those "who are generally employees who perform manual labour or clerical work"; and "Employees" who perform administrative, executive, technical or professional functions (referred to as "non-Workers"). The Labour Act is limited in its scope as it applies only to Workers. The terms and conditions of employment of non-Workers are primarily subject to the terms of their respective contracts of employment.
2 In addition to employment contract or letter of employment, there is also the Employment Handbook, which contains comprehensive terms and conditions of employment, and policies of the company. However, unless the Employment Handbook is incorporated into and/or referenced in the letter of employment, it generally does not form part of the terms and conditions of employment. See Mainstreet Bank Registrars Ltd v. Ukandu (2017) LPELR-50172 (CA).
3 Patrick Ziideeh v. Rivers State Civil Service Commission (2007) ALL FWLR (Pt.354) 243 at 265, Paras C-D (SC),(2007) 1-2 SC 1
4 Adefemi v. Abegunde (2004) 15 NWLR (Pt. 895) 1
6 Where no notice is prescribed, a reasonable notice is implied – see Abukogho v. African Timber & Plywood Ltd (1966) All NLR 377, Daniel v. Shell B.P Petroleum Dev. Co. of Nigeria Ltd (1962) 1 SCNLR 19. The Labour Act prescribes the minimum notice period, serving as a guide for reasonable notice period.
7 Unless otherwise stipulated in the employment contract.
8 Though the resignation is wrongful, constituting contractual breach, yet effective – see Osu v. P.A.N Ltd (2001) 13 NWLR (Pt. 731); Benson v. Onitiri (1960) NSCC 52, (1960) SCNLR 177.
9 Taduggoronno v. Gotom (2002) 4 NWLR (Pt. 757) 453 CA; Adefemi v. Abegunde (supra).
10 Riordan v. War Office (1959) 3 ALL ER 552.
11 See Bimbo Atilola, Labour & Employment Law in Nigeria: A Practitioner's Guide, Volume 2 (Lagos: Hybrid Consult, 2023) at pp. 236 -245.
12 See Miss Ebere Ukoji v. Standard Alliance Life Assurance Co. Ltd. (unreported judgment delivered on March 26, 2014, by Hon. Justice B. B. Kanyip in Suit No. NICN/LA/48/2012).
13 Mr. Patrick Obiora Modilim v United Bank for Africa Plc (unreported judgment delivered on June 19, 2014 by Hon. Justice B. B. Kanyip in Suit No. NICN/LA/353/2012).
14 Mrs. Amaechi Lauretta Onyekachi v Stanqueen Investment Ltd. (unreported judgment in Suit No. NICN/LA/271/2014, delivered on December 4, 2015 by Hon. Justice B. B. Kanyip).
15 Riordan v. War Office (supra)
16 [1981] IRLR 278
17 On the employer's actions, see for example, the explanations made on constructive dismissal above.
18 [2023] EAT 132
19 Although non-acknowledgment of an employee's resignation has no legal effect on the effectiveness of it. It takes effect once it is tendered, and an employer has no discretion to accept or reject it.
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.
