When an employment relationship ends, it is crucial for both employers and employees to distinguish between dismissal and resignation. Misunderstandings in this area can lead to costly disputes, as highlighted in the case of De Gruchy v Vissery (2025) 1 BALR 15 CCMA. This case underscores the importance of properly handling resignations to prevent unnecessary legal complications.
Understanding the Difference
- Resignation occurs when an employee voluntarily decides to terminate their employment contract.
- Dismissal happens when an employer terminates the employee’s contract, often due to misconduct, poor performance, or operational requirements.
Best Practices for Handling Resignations
To avoid disputes and ensure clarity, employers should take the following steps when an employee resigns:
1. Confirm the Employee’s Intent
Ensure that the resignation is voluntary and not made under duress or emotional distress.
2. Request a Written Resignation
The resignation should be in writing, ideally signed in the presence of a witness, to prevent later disputes about whether the employee truly resigned.
3. Provide Written Confirmation
Employers should acknowledge the resignation in writing, detailing the notice period, final working day, and any remaining obligations.
4. Conduct an Exit Interview
This provides an opportunity to document the employee’s reasons for leaving and obtain their acknowledgment of the resignation.
5. Avoid Emotional Reactions
Workplace conflicts can be heated, but reacting impulsively can lead to legal consequences. Employers should remain professional at all times.
6. Train Managers and Supervisors
Proper training on resignation and dismissal procedures ensures that managers handle these situations correctly, reducing legal risks.
Verbal Resignations: A Risky Practice
Verbal resignations should be avoided whenever possible. If an employee is unable to submit a written resignation, employers should:
- Have a witness present to verify the resignation.
- Follow up with written confirmation to ensure there is no ambiguity.
The Importance of Proper Documentation
Employers who fail to document resignations properly may face disputes where an employee later claims they were unfairly dismissed. By ensuring that resignation processes are handled with transparency and professionalism, businesses can protect themselves and their employees from unnecessary legal battles.
Conclusion
Resignation and dismissal are two distinct employment termination processes that must be handled correctly to avoid disputes. By following best practices such as confirming intent, obtaining written resignations, and maintaining clear records, employers can ensure smoother transitions and protect their businesses from potential legal issues.
