When a Resignation is Not a Resignation

Mark Goodger worked for his aunt and uncle for around 20 years as a joiner’s labourer at Mainly Doors in Christchurch. He resigned while abusing his aunt on the phone, and subsequently raised a personal grievance claiming he had been unjustifiably dismissed. The employee won and was awarded $5,600 in lost wages and $8,000 compensation which was reduced by 50% for his contribution to the events.

The background facts to this case demonstrate how careful employers must be with heat of the moment resignations. After work one day Mr Goodger phoned his uncle to ask for the next day off. Initially the leave was granted, however immediately on hanging up the uncle he realised he had some on-site quotes booked for the following day and so needed Mr Goodger at work. His wife immediately phoned Mr Goodger back to let him know. An argument ensued with Mr Goodger claiming he said “she could stick the job up her a*se” and the aunt claiming he said “get f***ed, I quit.”

Later that evening the aunt sent a text saying; ‘We have accepted your two weeks notice. See you for the next two weeks from 8am tomorrow.’ Mr Goodger a couple of hours later left a voice message in part saying; ‘Won’t be seeing you tomorrow, or probably ever’.

The following morning Mr Goodger phoned and apologised, however he did not specifically retract his resignation. Later that day Mr Goodger collected a motorcycle he had been storing at the business premises and some personal items.

It would appear to most employers that this was a clear resignation and it is hard to see how the Employment Relations Authority (ERA) could possibly determine otherwise. The well established case law and an employer’s good faith obligations require an employer to investigate the employee’s true intentions when he acts in the heat of the moment. The ERA in this case went as far as saying that although Mr Goodger did not expressly retract his resignation, it was implicit by his apology that he wished to do so. It was the responsibility of the employer to engage in meaningful dialogue about Mr Goodger’s true intentions after he had cooled down.

The lesson is clear – always allow time to cool down and then talk to the employee. If they retract the resignation you can still consider a disciplinary process into any unacceptable behaviour.