Guest Author - Gwendolyn Thompson
Sometimes a company will give you a choice of resignation in place of termination when they are down sizing. They may even promise you that you will be rehired when things improve for the company. Usually that does not happen as they prefer a new hire at a lesser wage.
Some things you will want to keep in mind when deciding if you want to turn in a resignation in place of a termination is that a resignation gives the company the most benefits. They may ask for a termination letter in order to stay out of the media spot light and save money.
If you resign, the employer will have no legal action issues. This will ensure that the employer will not have to reinstate your employment and the company will not have to pay the required notice period amount. This also permit’s the company to deduct your accrued leave hours from your final pay.
The media can report “mass layoff’s” for company down sizing and can cost them in the long run. Stocks may fall, investors could become wary of investing and the government could intervene to reinstate laid off employees jobs all of which could cost the company more money.
A termination letter is more in favor of the employee as it forces the company to give the terminated employee all of their dues. They will have to pay you the notice period, leave and severance pay as well as giving you the right to file a case of wrongful termination.
The government can request that your employment be reinstated and if the government offers compensation to terminated employees you can apply for it by showing your termination letter. You will also use your termination letter to apply for unemployment compensation.
Resignation or termination does not in it’s self determine if you are eligible for unemployment benefits. Unemployment benefits are determined by why you lost your job not how you lost it. The concern is if the job loss was “due to no fault of your own.“
Remember, it is more difficult to prove that your job loss was not your fault if you turn in a resignation from your job. If you are asked to resign and you do not feel that you should then continue to go into work everyday until you are asked to leave then ask for it in writing.
Resignation or termination should not be an issue when searching for your next job. Make it clear when asked that your previous job departure was a mutual decision. Stress the things that you took away from that position in a confident way that shows that you are on top of your career.
When deciding if you should turn in a resignation or wait for a termination letter keep in mind that you will still want to apply for unemployment benefits. If you are approved for benefits your determination letter will serve as proof that your job loss was not due to your own actions.
