Can I get a payout for leaving my job?
If you want to leave your job, you’ll have to resign. If you feel forced to resign because of something your employer or colleagues have done, you may be able to make a claim and receive compensation.
This can be complicated, lengthy and costly. A quicker and easier way may be to stay in the job and negotiate an exit package rather than leaving and claiming constructive dismissal later.
First, let’s talk about a straightforward resignation.
How to resign
When you’re ready, you should make it clear to your employer that you’re resigning, whether you do that verbally or in writing. (Writing is always best.)
A threat to resign doesn’t count – and isn’t a good idea as your employer may not treat you well when they know you intend to leave. You might even change your mind.
You will have to give notice as set out in your contract of employment. If you don’t have one, the statutory minimum period is one week where you have been employed for one month or more. If you’ve been employed for less than a month, you don’t need to provide any notice.
You’ll receive your normal salary and benefits during your notice period. If your contract allows, your employer may prefer you not to work your notice period. Instead, they might put you ‘on gardening leave’ or pay you in lieu of notice.
Your employer can’t refuse to accept your resignation unless you fail to follow the procedure outlined in your contract.
In your letter, say you’re resigning, include the period of notice you’re going to work, and state your last working day.
If you’re leaving because you’ve got a new job and the start date is before the end of your notice period, talk to your employer. Unless you’re a senior employee who’ll be hard for them to replace quickly, they may be willing to let you leave early.
No matter how tempting it may be, try to avoid resigning “with immediate effect” as this could put you in breach of contract and mean that your employer could make a claim against you.
Resignations can’t usually be withdrawn. However, if you resigned ‘in the heat of the moment’ – after a row, for example – your employer will probably let you withdraw your resignation within a reasonable amount of time, certainly within the next few days. If they don’t let you, you might be able to make a claim for unfair dismissal.
Constructive dismissal
If you are resigning due to constructive dismissal, you won’t usually have to work your notice. If you win your claim, you’ll be paid for that period.
In your resignation letter, explain clearly the reasons you’re leaving (such as bullying) – this will be used as evidence later.
Avoid including expressions that could be used against you, such as:
- Thank you for the opportunity
- I’ve enjoyed working here
- Kind regards
- Best wishes
If you are resigning because you’re facing a gross misconduct dismissal, it’s wise to take legal advice and negotiate a planned exit that maintains your integrity. Unless your employer’s allegations are totally unsubstantiated, your resignation could be seen as evidence of your guilt, weaken any subsequent employment tribunal claim, and negatively affect your reputation.
What this means to you
We are specialist employment lawyers who only ever act for employees, not for employers. If you’re feeling forced to resign from your job, talk to us first. You can ask us to write a letter to your employer setting out your case, preparing a grievance or proposing an exit package for you.
We’ll prepare the letter for a fixed-fee, so you’ll know where you stand and won’t run into unexpected legal costs.
Related reading
If you found this information useful, you might also like to read our related articles. These include:
- Can I claim for constructive dismissal if I resign?
- How to negotiate an exit package
- I have been forced to resign
- Should I resign?
- What to do if you are harassed at work
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