When Resigning Isn’t the Same as Being Dismissed – A Cautionary Tale for Employees
Leon Slobe claimed he was pushed out of his job at Bella Build & Design. He said the company’s actions—including removing his fuel card, suggesting he find other work, and bullying by a director—left him no real choice but to resign. But the Fair Work Commission wasn’t convinced. In the end, the Commission found that his resignation wasn’t a dismissal under the Fair Work Act, and his unfair dismissal application was dismissed.
Slobe started working for Bella in 2023 and transitioned to a new role with more responsibility in April 2024. But things quickly soured. He was put on a Performance Improvement Plan (PIP) and issued a written warning. According to Slobe, he was being micromanaged, excluded from meetings, and pressured to look for other jobs. He said this conduct left him no option but to resign.
Slobe argued that the situation became intolerable. He pointed to a series of events that he said undermined his position—like being denied leave to attend a funeral, being yelled at in front of colleagues, and being assigned duties outside his role.
Bella, on the other hand, said they had valid concerns about his performance, especially after a failed project and client complaints. They insisted the PIP was a structured, fair attempt to help him improve. They also offered him the chance to withdraw his resignation and resolve the issues, but he declined.
Commissioner Schneider found that while parts of the PIP process were unfair, they didn’t reach the threshold for constructive dismissal. Bella’s conduct may have made the workplace uncomfortable, but it didn’t cross the line into unlawful pressure. The Commission said:
“Despite the deficiencies noted above… I am not satisfied that Bella’s conduct (or course of conduct) resulted in Mr Slobe having no other option than to resign.”
The key issue was that Mr Slobe chose to resign—and even declined an invitation to reconsider. His case didn’t demonstrate that Bella actively forced him out.
Key Takeaways for Employees
Quitting doesn’t always mean you’ve been ‘constructively dismissed’. The bar is high. You need to show that your employer’s conduct left you no real choice but to resign.
Raise concerns formally before resigning. If you feel you’re being mistreated, lodge a formal grievance or ask for mediation before you resign.
PIPs aren’t dismissals. Even if unfairly applied, performance improvement plans are seen as remedial steps unless they're clearly designed to force you out.
Document everything. In cases like these, the burden is on the employee to prove the employer’s conduct made the situation intolerable.
Think carefully before resigning. If you’re given a chance to withdraw your resignation and resolve the issue, doing so can help preserve your legal rights.
This case is a reminder that the decision to resign has serious legal consequences. Even when work feels unbearable, it’s critical to seek advice early, raise issues clearly, and avoid decisions made in isolation. Slobe’s experience highlights just how difficult it is to prove constructive dismissal—especially when your own resignation is on record.
