An employee says they’re done, walks out or tells you they don’t want to keep working. It might sound like a resignation, but a recent Fair Work Commission decision shows why employers should confirm what was actually meant before acting on it.
What Happened?
In Hong v Green Drake Pty Ltd, a long-term farm employee had a difficult conversation with his employer while he was distressed. During the conversation, the employer asked whether he intended to continue working at the farm. The employee responded with words to the effect of “no”.
The problem was that they understood the conversation differently. The employer believed the employee meant he no longer wanted to work for the business, while the employee believed he was being asked whether he intended to work that day. The employer treated the conversation as a resignation, asked the employee to collect his belongings and sent him home.
The Fair Work Commission found there had been a misunderstanding and that the employee had not clearly resigned. Because the employer did not later clarify what the employee intended, the Commission found that the employment had ultimately ended at the employer’s initiative.
When Should Employers Double Check?
A resignation should clearly communicate that an employee intends to end their employment. If something is said during an argument, an emotional conversation or in circumstances where the employee’s meaning isn’t clear, employers should be cautious about immediately treating it as final.
Rather than assuming what the employee meant, give the situation some time to settle and confirm their intentions. This could be as simple as asking the employee to confirm whether they are resigning and, where appropriate, requesting that confirmation in writing.
The Takeaway
When the words come during a heated, emotional or confusing situation, don’t rush to process the termination. Clarifying the employee’s intentions before taking action can prevent a misunderstanding from becoming an employment dispute.
If you’re dealing with an employee who has stopped attending work or responding to contact us on (08) 9316 9896 or get in touch with our advisors before taking further action.
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