Unfair Dismissal Claims: Why Resignation Isn’t Always the End
Many employees believe that once they resign, they lose any chance to bring an unfair dismissal claim. What they may not know is that the Fair Work Commission can still treat a resignation as a “constructive dismissal.” This happens when the employer’s conduct leaves the employee with no real choice but to resign. For example:
A boss repeatedly threatens termination unless the employee quits.
Hours or pay are suddenly cut to an unsustainable level.
The workplace becomes so hostile due to management conduct that resignation feels forced.
In one case, an employee resigned after being told she would be demoted with a significant reduction in her responsibilities. The Commission found that her resignation wasn’t truly voluntary. Instead, it was considered a dismissal because the employer’s actions left her with no genuine option but to leave.
The key issue is whether the resignation was truly the employee’s free choice. If it was forced or pressured by the employer’s actions, it can still be challenged as an unfair dismissal. This is an important safeguard. It prevents employers from escaping accountability by pushing employees out rather than formally firing them.
