Alternatively, the employee may argue that they were forced to resign involuntarily and the employer could end up facing a claim for constructive dismissal. 54.87.98.172 This should therefore reflect the real reason for dismissal - particularly given the nature of the offence. respond for the employee to any comments or points made at the meeting. The true position of the law is that an employee cannot unilaterally withdraw a valid and lawful resignation once it has been communicated to the employer except with the employers consent. We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. 1. In Ms Mtatis first resignation letter, she submitted her resignation in line with her contractual notice. [ G.R. The employer in this case had not accepted the repudiation; on the contrary, it had instructed Ms Chiloane to serve out her notice period, albeit remaining at home on suspension pending a disciplinary hearing set to take place within the notice period. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. This means that the employee remains an employee of the employer until the notice period expires and disciplinary action can still be pursued against such an employee during their notice period. The Labour Court had to determine the question of whether a disciplinary process can continue once an employee has resigned in, In determining the matter, the Labour Court relied on the minority judgment of the Constitutional Court in. Is an employee able to avoid a disciplinary hearing or disciplinary Resignation during a disciplinary process What can an employer do? The resignation letter documents that the employee initiated the termination and that it was not because of any disciplinary action. The chairperson ruled that she had jurisdiction to chair the hearing and MsMtati walked out, leaving the hearing to proceed in her absence. This is for the protection of the employee, the employer and their business. talk with the employee during the hearing. The rationale is that having resigned with immediate effect, the employment relationship is immediately terminated. The only right of the employer that remains in such circumstances is the right to institute civil, commercial or criminal action against the employee in his private capacity and not as an employee. If so, is the employee still entitled to refer a dispute of unfair dismissal to the CCMA after such resignation? Handling a staff resignation after their disciplinary has started. After KPMG informed her it would be commencing with the disciplinary proceedings, Ms Mtati submitted the second resignation letter indicating that she was resigning with immediate effect. Necessary cookies are absolutely essential for the website to function properly. Why could dismissing sick employees be dangerous? Is an employee able to avoid a disciplinary hearing or disciplinary Mohindra & Company (K) Limited [2015) e-KLR is instructive in this regard. We have been instructing Pagdens since 2014. I often warn employees that they could find themselves subject to a reference which (fairly) states resigned during a disciplinary procedure. Basically, to unilaterally withdraw the resignation on notice and replace with resignation with immediate effect. Situations such as this are difficult for everyone involved but sometimes there is no other solution. This essentially enables employers to have off the record conversations with employees who are at risk of dismissal. Clear, regular and confidential communication can help avoid: The employer should keep all personal information confidential. Resignation before disciplinary action. If the hearing is not concluded before the end of the notice period the employer will lose the right to discipline the employee when the employment relationship terminates. In cases which involve discriminatory elements, for example the employee believes they are doing a good job and claims they are being treated differently due to their gender, employers should proceed with the utmost caution. Port Elizabeth, This should be done in writing and should include: The employee should have this information in time to prepare for a disciplinary 'hearing'. Resignation before disciplinary action - Polity.org.za If the issue is more about stupidity, then the company may just end the process drawing a line under it. Why Opioids Are So Dangerous and How HR Departments Can Fight the Problem, 5 Common Recruitment Bottlenecks And How to Overcome Them, 10 Transformational Growth Hacks to Up the Leadership Capability of Your Team, Trends in the business world which are affecting recruitment and hiring, How interpreting body language can improve the workplace, 6 trends influencing the workplace for 2019. Errors and omissions excepted (E&OE), For more information about labour law please contact Director Matthew Kemp by email: matthew@pagdens.co.za. Dealing with resignations during disciplinary processes The attorneys are underpinned by friendly and competent secretaries, personal assistants and administration staff. 2. Mass equal pay for equal work referral: arbitration or adjudication? The legal question is, how should an employer deal with or react to the resignation by an employee during or in anticipation of disciplinary proceedings? The Labour Court had to determine the question of whether a disciplinary process can continue once an employee has resigned in Mtati v KPMG Services (Pty) Ltd [2017] 3BLLR 315 (LC). Where an employee resigns from the employ of his employer and does so voluntarily, the employer may not discipline that employee after the resignation has taken effect, That is because, once the resignation has taken effect, the employee is no longer an employee of that employer and that employer does not have jurisdiction over the employee anymore. An employee who resigns in order to avoid a disciplinary hearing from taking place must remember that upon tendering a letter of resignation, the contract of employment is not immediately terminated. The employee will have to provide the employer with notice of their intention to resign. As a result, their clients remain loyal and keep referring matters and also other acquaintances. Resignation is employed to avoid summary dismissal which is the penalty for gross misconduct under most contracts of employment. The employer may seek to prove that the employee breached the contract of employment while resigning. The judge accepted that employers may discipline and dismiss employees during the notice period in the event of a resignation as such persons remain employees of the employer. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. The cookie is used to store the user consent for the cookies in the category "Other. This could risk the employee later claiming constructive dismissal at an employment tribunal. Going through a disciplinary procedure can be very stressful, so it's important that employers consider the wellbeing and mental health of their employee. The judge held that the fact that an employee has given a notice to terminate the employment contract does not take away the power of the employer to discipline him . or reject the employee's repudiation, hold the employee to the notice period and proceed to hold the hearing during the notice period, even if the employee chooses not to attend. Employers need to be aware that anything they say or include in email or other documents could be used against them as evidence to support such a claim. Eastern Cape, sum up the employee's case at the end of the hearing. These cookies will be stored in your browser only with your consent. Nov 20th 2020 (Last updated Jun 13th 2023) Read our article: 'Dealing with resignations during disciplinary processes'. In that event, the employment relationship, including rights and obligations arising thereof, ceases to exist. In other words, where the employee resigns with immediate effect, the employer then loses the right to discipline the employee. Checking this box will stop us from using analytics cookies across our website. We continue to enjoy a legal service superior to what we have experience anywhere else. September 22, 2022. In other words, a resignation not in compliance with either the contractual or statutory notice period will not constitute a valid unilateral termination of the employment relationship. The first letter was submitted after KPMG informed her that it was conducting an investigation into allegations related to conflict of interest and failing to disclose her directorship in several competitor companies. Or get in touch with us on our website Contact | PAGDENS | Law Firm In Port Elizabeth. This article is for general information should not be used or relied on as legal or other professional advice. The employee might feel they want to resign or 'jump before they're pushed' when they are facing a disciplinary. The common mode for voluntary termination of employment is with notice. Working with other law firms I have always resented their astronomic fees. The content of this website may contain attorney advertising under the laws of various states. If the employer has considered trying to resolve the issue informally but feels they need to start a disciplinary procedure, they must tell the employee straight away. Before opting to give an employee the opportunity to resign, employers should always seek expert legal advice to ensure they are properly protected. Despite your good intentions, this type of situation can easily come back to bite you. Whatever rights had accrued to Webster by virtue of his dismissal had been novated. In this case, Ms Mtati brought an urgent application seeking an order to interdict KPMG from proceeding with a disciplinary hearing after her resignation with immediate effect. If the disciplinary procedure concludes during the notice period with a recommendation for the employees summary dismissal on the grounds of gross misconduct, this will supersede the resignation and the employee will be deemed to have been dismissed for conduct reasons. Therefore, in order to avoid the disciplinary enquiry the employee will need to resign with immediate effect so that the employment relationship terminates immediately which has the effect that the employer may not hold a disciplinary hearing because the employee is no longer an employee of the employer. The courts in Nigeria have held that the consequence of resignation with immediate effect is that the employee will forfeit all benefits under the contract of employment as the resignation was in breach of the contract of employment. The employee remains an employee of the employer until his notice period expires and therefore the employer can still go ahead with the disciplinary proceedings. The question hinges on two issues. And to ensure that the employee leaves on good terms, the employer can offer to provide them with a reference. When an employee resigns in the face of disciplinary action The is the typical response of most employers. In determining the matter, the Labour Court relied on the minority judgment of the Constitutional Court in Toyota SA Motors (Pty) Ltd v CCMA and others1 where Zondo J held that: Another context of resignation is the normal resignation. If an employee resigns and gives notice the employer is entitled to convene a disciplinary hearing during the notice period. What to do when an employee resigns before their disciplinary hearing? Resignation during a disciplinary process - What can an - Fasken They should gather evidence and make a decision based on what they know about each case. These cookies ensure basic functionalities and security features of the website, anonymously. What can you do when an employee resigns while facing disciplinary action? However, you may visit "Cookie Settings" to provide a controlled consent. The action you just performed triggered the security solution. If the hearing is concluded before the notice period ends and the employee is found guilty and dismissed, the reason for the termination of employment would be dismissal and not resignation. We use analytics cookies to help us understand how people use our website. We also use third-party cookies that help us analyze and understand how you use this website. The case Kennedy Obala Oaga v Kenya Ports Authority [2018] eKLR further affirmed this position and held that the employer could not deliver a lawful verdict arising out of a disciplinary process after the termination of employment, even though disciplinary hearing had concluded. The cookie is used to store the user consent for the cookies in the category "Analytics". It can be on notice or with immediate effect. At the disciplinary hearing, MsMtati objected to the chairpersons jurisdiction to preside over her hearing, given her resignation with immediate effect. An employee who resigns and then wishes to revoke the resignation cannot do so unless the employer agrees to this. If she is then dismissed due to gross misconduct, this simply over-rides the resignation and the dismissal will be effective immediately with no entitlement to notice or pay in leiu of notice. Blog Can I refuse the employee's resignation? Recent decisions have, however, departed from this position, and for good reason. An employee has the right to resign and tender his or her resignation at any time, provided that the resignation does not place the employee in breach of contract. set out the employee's case. If an employee resigns and gives notice the employer is entitled to convene a disciplinary hearing during the notice period. By following the disciplinary procedure through to the end you have complied with your legal obligations and minimised the risk to yourself. To proceed, please click Accept. The Basic Conditions of Employment Act (BCEA) stipulates the minimum notice period which applies to the termination of an employment relationship. Employees who resign to avoid disciplinary action often refer constructive dismissal disputes to the CCMA or bargaining councils. It is not open to the employer for whatsoever reason to refuse to accept the resignation of the employee. 2023 Adepetun Caxton-Martins Agbor & Segun. 'The untouchables - disciplining employees after resignation' It is an increasingly frequent occurrence that when an employee is faced with disciplinary action, the employee elects to resign, with immediate effect, just before the disciplinary hearing takes place. The proceedings must, however, be concluded within the notice period; that is, the employee must be heard and judgment delivered to validate the findings of the process. 18 Castle Hill, Central Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features. If the employee is found guilty before the notice period's expiry, and the employer terminates the employment contract, such termination will be reflected as a dismissal and not resignation. Taking this approach can be an appealing option for both parties. Sample Pre-Disciplinary Meeting Letter Suggest keywords: Doc ID: 53567: Owner: OHR . Ask the expert: Resigning after suspension 'The untouchables - disciplining employees after resignation' Pagdens and specifically past commercial director Jean Opperman has given our company the very best legal support and advice over the last five years. Legal Effect of an Employee's Resignation in Anticipation of The resignation takes effect when the period expires. Learn how your comment data is processed. Ask for a resignation letter. MsMtati argued that once the relationship was ended by her resignation, KPMG did not have the right to discipline her. Employees who resign to avoid the consequences of disciplinary action If the disciplinary procedure concludes with a recommendation for the employee's summary dismissal on the grounds of gross misconduct, if this is effected during the employee's notice period it will supersede the resignation and the employee will be deemed to have been dismissed for conduct reasons. 6001, Contact | PAGDENS | Law Firm In Port Elizabeth, 3 Insights to fixed-term employment contracts. Employees hope that by doing so, they can avoid the consequences of being dismissed for misconduct and thus extricate themselves from a blemished disciplinary record that may . The Acas Code of Practice on disciplinary and grievance procedures is the minimum a workplace must follow. Or if the matter is particularly contentious, a small severance payment could be offered as compensation for the employee, whilst keeping things commercially beneficial for the employer. 419628. By clicking Accept All, you consent to the use of ALL the cookies. You need a resignation in writing so you can add it to the employee's personnel file. Resignation on notice is where the employee gives the employer a specified period before leaving employment. However, the disciplinary information collated should be retained for a period of up to one year after the employees resignation because it may be needed as evidence should the employee subsequently try to claim constructive dismissal or unlawful discrimination in relation to the conduct of the disciplinary proceedings or anything else they may come up with. She was then handed a charge sheet and informed that a disciplinary hearing would start during her notice period. For example, as well as regular communication, the employer could arrange any meetings in a more private and comfortable location if this would help the employee. Disclaimer: This article is for general information purposes only, and is not intended to constitute legal or other professional advice, and should not be relied on or treated as a substitute for specific advice relevant to particular circumstances. The simple answer is YES! Employers are often faced with a scenario where an employee, who is due to be subjected to a disciplinary hearing, elects to resign with immediate effect. Hi Alex, As the person has given notice of their resignation, you should continue with the disciplinary procedure anyway. An employee who resigns with notice informs the employer of their intention to end the employment relationship following the notice period agreed to in their contract of employment. It should be noted though that the development of the law in this area is rather problematic. 1.Do we accept the letter of resignation and let the employee work their notice? This means it should only be used as an alternative to the termination of employment where there is strong evidence to support the decision. How you conclude the disciplinary may affect the decision on giving a reference or what it will contain. The court found that the correct way to proceed is to hold the employee to his/her contract by seeking an order for specific performance. You should seek specific legal advice on any matter that concerns you from your lawyer or contact us for professional advice. Does resigning after being notified of disciplinary action constitute a It must also be noted that nothing in law prevents an employee who resigns on notice, which is then accepted by the employer, from thereafter resigning with immediate effect during the notice period. G.R. No. 217101 Was this article helpful? If she is then dismissed due to gross misconduct, this simply over-rides the resignation and the dismissal will be effective immediately with no entitlement to notice or pay in leiu of notice. Apart from it being an absolute pleasure to work with Pagdens, it is also refreshing that one receives reasonable bills. 3) The employee's companion is unavailable. You are switching to another language. However, where the employee resigns and the employer accepts the resignation, the resignation is treated as a settlement. Does resigning in the face of disciplinary action 'let you - Bowmans They can only do this if they have worked for the organisation for 2 years or more. accept the employee's repudiation by accepting the resignation 'with immediate effect' (without proper notice); or. It might be appropriate to deal with both at the same time if the grievance and disciplinary cases are related. The employer must make sure they follow a full and fair procedure throughout. However, if the employer accepts the resignation with immediate effect, the employer shall in effect lose jurisdiction to proceed with any disciplinary action against the employee. If the hearing is concluded before the notice period ends and the employee is found guilty and dismissed, the reason for the termination of employment would be dismissal and not resignation. Whilst this may not have the same effect with a dismissal, we however believe that it addresses the issue of payment of terminal benefit which is the key difference between voluntary termination and summary dismissal. Consider whether there is a good reason to start a disciplinary process. nstances may arise where the employee resigns by giving notice period and thereafter purport to resign with immediate effect. The employee will have to provide the employer with notice of their intention to resign. Ms Mtati attended the disciplinary hearing but only to argue that KPMG lacked jurisdiction to discipline her as the employment relationship terminated summarily with her resignation with immediate effect. While the employer loses jurisdiction to discipline an employee whose resignation has taken effect, the employer may have recourse against the employee for breach of contract. Blacks Solicitors LLP is a firm of solicitors authorised and regulated by the Solicitors Regulation Authorityno. Rather than inviting employees to resign in ordinary disciplinary situations, such as where misconduct has occurred or performance is unsatisfactory, it's recommended that employers use the right introduced under the Employment Rights Act in July 2013 to have "protected conversations". This article provides more information. However, keep in mind your companys policy for giving references. The right of an employee to resign with immediate effect is a Constitutional1 right. You might have your own code or policy with some differences that better suits your workplace. They can only do this if they have worked for the organisation for 2 years or more. 1. For the employee, it would avoid a humiliating disciplinary process and a black mark on their CV if they were dismissed which could damage their chances of gaining employment elsewhere. If you have a question about your individual circumstances, call our helpline on0300 123 1100. If you are not already a client of Dentons, please do not send us any confidential information. There is no doubt that resignation with immediate effect is a violation of most contracts of employment. Resignation is a unilateral act and does not require the acceptance or consent of the employer to take effect. Ludwig Frahm-Arp and Siphamandla Dube analyse a Labour Law case in an effort to explain an employers rights in dealing with employees who resign while facing disciplinary action. Marchmouse Media Ltd - EmploymentSolicitor.com is not a firm of solicitors. My question is what is the best way forward with this situation. So for example, if an employee claims that they were coerced or bullied into agreeing to resign, then the content of protected conversations may be admissible in court proceedings. Is an employee able to avoid a disciplinary action by resigning? - GoLegal CEO, with a large membership in various industries and a wealth of experience, is that voice. To this end, resignation with immediate effect after resignation on notice does not oust the jurisdiction of the employer to pursue disciplinary proceedings against the employee. Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. They have helped us to navigate two particularly complex issues in our business with huge success, the last one being the sale of the business. If an employer is offering an employee the opportunity to resign, the basis of the conversation needs to be very clear from the outset, with the realities of the employees situation fully explained so that both sides can reach a mutual agreement and avoid any misunderstandings. It does not matter whether there is a provision in the contract of employment or policy of the employer that gives the employer powers to reject a resignation during disciplinary proceedings. However, does an employee have a right to .
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