Prompted Resignations

A "prompted resignation" is a resignation that appears to be voluntary. However, the idea or motivation for the employee to resign comes from somebody else, usually you, the employer.

In some cases, the employee expresses the wish to resign rather than to be fired. In others, you may offer the opportunity to resign, to avoid the additional time and costs involved in documenting the situation and firing the person.

In general, it’s better for you if the employee resigns. An employee who wants a job reference that says he or she resigned, rather than a reference that shows he or she was fired, is less likely to sue you. He or she is also less likely to file for unemployment benefits, since these benefits aren't paid for voluntary resignations. However, it’s always possible that the worker could change his or her mind and story sometime in the future, so be sure you treat the prompted resignation as if it were a firing for your own internal records.