Workers like yourself are facing new challenges in your careers, such as increasing digital integration in your work, more frequent “rightsizing”, being asked to reapply for jobs, and voluntary resignation.
Whether arising from organisational restructuring or role fit concerns, voluntary resignation typically tends to provide a more dignified transition than formal termination by the employer. While it's not an uncommon occurrence, being asked to resign voluntarily may catch you off-guard when you least expected it.
It's important to take time to understand how voluntary resignation will impact your job and career, and how you can move on from there. In this article, we'll share what voluntary resignation is, why you are given the option by your employer to resign, and what you should do.
what is voluntary resignation?
Voluntary resignation is fundamentally different from termination in both process and meaning. In a voluntary resignation, the employee is the one who formally decides to leave the organisation.
Termination occurs when the employer initiates the separation process - usually due to misconduct or poor performance.
Typically, voluntary resignation would mean for an employee to tender your resignation because you’ve found another better job opportunity, or want to leave your current job and take a break.
However, an employer could also ask you to resign voluntarily, rather than retrench or terminate a worker. While this request is not commonly practiced, it is good practice to know your rights as an employee if it happens to you.
In the next section, let’s understand why this option exists for both employers and employees.
why and when do employers request for voluntary resignations?
One of the most common reasons why bosses ask employees to resign voluntarily is because of internal restructuring that has deemed the role obsolete soon. This approach gives employees more time to search for new opportunities before their positions are eliminated, offering a more respectful and peaceful transition than immediate termination.
In recent months, we are also seeing more global companies requesting employees to reapply for the jobs that they are already working in. This is because the role has or will transform significantly and require new skills to perform the new responsibilities. During these times, employers will interview both employees and external job seekers. Employees who reapply for the jobs but did not manage to pass the interview might then be asked to resign voluntarily.
Another common reason for voluntary resignations is when both the employer and employee recognise that the role isn’t a good fit, leading to a mutual agreement for resignation.
why is my employer asking me to resign?
Some employers give the employees a heads-up to start looking for a job if they know that the position will be eliminated in due time.
Being able to transparently and respectfully have the discussion with you about your career future gives you time to prepare for your future, and can also improve the perception of the employer.
However, this may not always be the case most of the time, as even management-level personnel learn about retrenchments days before the announcement.
It all depends how transparent your company and employer choose to be in sharing business decisions that will impact your role in the company.
what can you do when asked to voluntarily resign?
When facing a request to resign, it's essential to understand your legal rights and options.
Employees have the right to resign or refuse to do so, and they are protected against wrongful dismissal. After deciding on a course of action, taking time to process the situation and negotiating post-resignation support can be crucial for a smooth transition.
1. know your legal rights as an employee
Employees are not obliged to resign just because their employer requests it. Under Singapore's Employment Act, employees have the right to resign at any time by serving the required notice or paying compensation in lieu of notice. Employers cannot reject an employee's resignation, and employers cannot prevent employees from leaving their job. Employees also have the right to understand the reasons behind any such request for resignation to ensure fairness and transparency.
If an employee feels pressured to resign under circumstances that may be discriminatory or unjust, they can seek legal advice. For example, Singapore's guidelines on wrongful dismissal clarify that dismissals based on discrimination (e.g., age, race, gender, or religion), victimisation for exercising employment rights, or providing false reasons for termination are considered wrongful.
Employees who feel pressured or forced into resigning under such conditions may file a wrongful dismissal claim with the Employment Claims Tribunals or seek mediation through the Tripartite Alliance for Dispute Management (TADM).
2. what to do immediately after
You should always take some time to digest the information, as being out of a job could be very disruptive and emotionally challenging.
If you choose to stay in the role for a while longer, you should still update your resume and interview with new employers. The extended time allows you to brush up on your interviewing skills, which is very important if you have not searched for a new job in the past few years. If you find yourself facing some skills gaps, then you should consider taking some training courses to upskill yourself.
If your voluntary resignation was part of a larger restructuring exercise, it’s a good idea to negotiate for post-resignation support that the company can provide, including career coaching, upskilling and severance packages.
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