Heat of the Moment Resignations

These impulsive resignations may not reflect a genuine intention to leave and can carry legal implications. It’s essential for clubs to understand how to identify and appropriately respond to such scenarios.

What Constitutes a Heat of the Moment Resignation?

A heat of the moment resignation occurs when an employee resigns impulsively, often due to a heated argument, stress, or other emotional triggers. The Fair Work Commission (FWC) recognises that such resignations may not always reflect the employee's true intention to leave their job.

Legal Considerations

1. Unambiguous Resignations: Generally, if an employee's resignation is clear and unambiguous, a club can accept it as a valid resignation. However, special circumstances may arise if the resignation is given in the heat of the moment.

2. Special Circumstances: In cases where the resignation is made under extreme pressure or emotional distress, the club may need to allow a reasonable period for the employee to reconsider their decision. If the club is aware that the resignation was not intended, the club has a duty to confirm the employee's intention before accepting the resignation. This should be done in writing. 

3. Withdrawal of Resignation: Employees may have the right to withdraw their resignation if it was made impulsively. The FWC has ruled in several cases that employers should not hastily accept resignations given in the heat of the moment without further inquiry.

Case Examples

Cases determined not a resignation but a dismissal by the employer: - 

Gold Tiger Logistics Qld v Campbell [2024] FWC 913

An employee had a heated exchange with her manager. During the exchange, the employer claimed the employee said, “I quit” and accepted her resignation. The employee denied she resigned, asserting she had said “this is sh*t” in an expression of frustration. The employee argued that the employer had misunderstood her due to her Scottish accent. The FWC preferred the employee’s evidence, finding she had not resigned. The FWC found that even if the employee had said “I quit” it was in the heat of the moment and the employer failed to follow up or clarify the employee’s intent. The FWC determined the termination was at the initiative of the employer and the dismissal was harsh, unjust or unreasonable because there was no valid reason for termination and the employee had no opportunity to respond. The employee was awarded 26 weeks’ wages (totalling $32,000).

Tao Yang v SAL HR Services Pty Ltd [2023] FWC 1325

An employee and manager had a heated argument over performance issues and feeling unfairly treated. The employee implied he wanted to leave, which the employer interpreted as a resignation, whereas the employee felt he was being dismissed. The employer later confirmed the resignation in writing. The central question was whether the employee voluntarily resigned or was dismissed. The FWC found the employee was dismissed by the employer and the dismissal was unfair. The employee’s resignation was not clear or unambiguous and the employer should have made further inquiries to determine whether the employee’s purported resignation was actually intended given the exceptional circumstances. In accepting the purported resignation, the employer initiated the termination of employment. The Employee was awarded 4 weeks pay given he had sourced alternate employment after 4 weeks. 

Marks v Melbourne Health [2011] FWA 4024

An employee's letter indicating an intention to resign in the future, sent while distressed, was not considered an effective resignation. The employer's acceptance of this resignation was deemed a termination initiated by the employer. The Employee was awarded 10 weeks pay.

Cases determined a voluntary resignation: - 

Love v Alcoa of Australia [2012] FWAFB 6754

An employee who admitted to police that he had taken the employer’s property without authorisation resigned rather than attend a scheduled disciplinary meeting with the employer. The FWC held the resignation was voluntary and not a forced resignation.

Ashton v Consumer Action Law Centre [2010] FWA 9356

An employee who chose to resign after having been placed on a performance improvement plan was found to have not been constructively dismissed by the employer.

Practical Advice for Clubs

If an employee resigns in the heat of the moment:

1. Assess the Situation: Assess the context and emotional state of the employee.

2. Allow a Cooling-Off Period: Provide a reasonable period for the employee to reconsider their decision.

3. Confirm Intentions: Confirm in writing with the employee that they are resigning and their decision is final.

Should you have any questions, please contact the ClubsNSW Workplace Relations Team via ClubASSIST on 1300 730 001.