My Employer Asked Me to Resign Instead of Firing Me — Should I?

Justice Law Corporation

“We think it would be best if you resigned” is something no one wants to hear from their boss. 

The suggestion is often phrased as if an employer is doing an employee a favor by giving them the option to walk off the job rather than be fired. But the truth is that employers who nudge workers out the door in this way are often trying to skirt their own legal responsibilities or even cover up workplace violations.

At Justice Law Corporation, our California class action employment attorneys help working people across the state ensure that they are fully paid and protect their rights on the job. Our lawyers fight for employees in pay, discrimination, wrongful termination, and a wide range of other cases. We are seasoned litigators with a strong track record for holding large companies and other employers accountable, in and out of court.

Resigning under pressure is not the same as simply walking off the job voluntarily. In the moment, it can feel as though your options are limited, but you likely have some time to decide whether to take your employer up on the suggestion that you quit. How you ultimately respond can have real career, economic, and legal implications.

It is important to understand your rights and options before voluntarily resigning from your job, even if you are already actively seeking opportunities elsewhere. Here is what you need to know.

Why Your Employer Wants You to Quit

Employers do not ask employees to resign as a gesture of goodwill toward their workers. These situations arise when employers are trying to protect themselves, not do a solid for their workers.

Employers may see several benefits when workers voluntarily resign rather than being fired. Here are some of the most common.

  • Reduced legal risk: A worker who resigns may have a harder time bringing a wrongful termination claim.
  • Controlling the narrative: The company can say the person left on their own free will, rather than being forced out.
  • Avoiding unemployment benefits: An employee who quits a job in California can still receive unemployment benefits, but only if they can show they had “good cause” to leave and made a reasonable effort to resolve the issue before quitting.

It is crucial to understand these motivations before deciding whether to leave or be fired.

Voluntary Resignation or Constructive Discharge?

Just because you “resign” from your job does not necessarily mean that the decision was voluntary. The move may be viewed, in certain situations, as a firing under California law.

Constructive discharge is a legal concept that protects workers from being forced out of their jobs under intolerable conditions. If your employer makes your working conditions so bad that a reasonable person would feel they have no choice but to quit, the law may treat your resignation as a termination.

The key question is whether a reasonable person in the employee’s position would have felt compelled to quit. To prove constructive discharge, an employee generally must show:

  • The working conditions were objectively intolerable: The environment must be more than unpleasant or stressful.
  • The employer created or knowingly allowed the intolerable conditions.: The employer either created the situation on purpose or failed to fix it after becoming aware of it.
  • The employee actually resigned because of those conditions: There must be a clear connection between the intolerable conditions and the decision to quit.

There are several ways employers can try to force workers to walk off the job. Some common examples include:

  • Discrimination
  • Harassment
  • Significant pay cuts
  • Demotions
  • Hours changes
  • Unsafe work conditions

Not every bad work situation rises to the level of constructive discharge. Ordinary workplace stress and conflicts with managers or colleagues generally are not enough. Instead, the situation must be extreme and ongoing. 

Is it Illegal?

Constructive discharge in and of itself is not a legal violation. In other words, employers generally can nudge workers off the job rather than firing them outright. Constructive discharges become unlawful, however, when they are done for an illegal purpose or are carried out in a way that violates the law.

Employers routinely force workers out in retaliation for speaking up on the job or otherwise exercising their rights. This is banned by state and federal laws: a worker who is retaliated against in this way may very well have a claim for wrongful termination.

In addition, constructive discharge that is motivated by a worker’s race, gender, age, nationality, or other protected characteristic violates workplace bias laws. And employers who engage in constructive discharges by shortchanging employees on wages or overtime pay are also liable under various wage-and-hour laws.

So, Should You Resign?

It depends. The right choice depends highly on the specific circumstances. 

It may make sense to resign on your own if you have negotiated a fair severance package and you do not intend to pursue legal claims against your employer. There is less risk in simply moving on in these situations, especially if you are in a financially stable place for you and your family.

Opting to stay on may be the right choice if you believe you have been mistreated and intend to pursue legal claims against your employer. It also helps if you plan to seek unemployment benefits and are not being offered severance. If you are being asked to decide on the spot, it is often best to decline the offer to resign.

No matter the circumstances, it is smart to consult an experienced employment lawyer to understand your rights and explore your options.

Our California Employment Class Action Attorneys Can Help

If you believe that your employer is violating your rights on the job, whether it is by being underpaid or in other terms and conditions, you do not need to go it alone. A California employment class action attorney at Justice Law Corporation can help you evaluate your claim and take action. 

Our office is conveniently located in Pasadena. Contact us at (818) 230-7502 to schedule a free consultation with a California employment class action attorney.