Voluntary Resignation: What Does it Mean?

Employees may voluntarily resign from their job with a corporation at any moment. Individuals typically do so when they discover a better job with another company, retire from the workforce, resign to establish their own business, or desire to take a break from work. 

Constructive dismissal, also called constructive discharge, can result in an employee’s voluntary resignation.

This suggests that the employee was compelled to leave the organization because of a lack of other employment.

Several factors could have contributed to this, including working under significant duress and difficult working conditions, which could have included a low salary and/or harassment, a new work location that was more than a reasonable commute distance from the employee’s home, and increased work hours.

In rare instances, an employee who quits their workplace freely may be obliged to submit their resignation verbally or in writing, termed advance notice. Before ending an employee’s contract, most sectors need a two-week notice period. 

In certain cases, the employee provides notice at the time of termination or offers no notice, such as when an employee abandons their job or cannot return after an extended length of time.

What is Voluntary Resignation?

Voluntary resignation refers to a circumstance in which an employee voluntarily ends his or her contract or service with the business. It can be one of the most stressful circumstances for a manager, even more so if the resignation occurs when the manager is unprepared, and one of the highest-performing employees is departing. 

However, persuading an employee to alter his mind and reverse his decision is frequently difficult, especially when the firm has little control over the situation.

Employees may leave their jobs for a variety of reasons. For instance, a change in personal circumstances such as family obligations or a desire to return to school, dissatisfaction with working conditions such as a hostile supervisor, a lack of recognition for work performance, and a lack of autonomy, challenge, or work relationships (among others).

A prevalent motivation for voluntary resignation is to pursue a new and better job, often one that pays more or gives better career opportunities. 

This is more frequently cited as a reason for leaving a job during rapid economic growth and high labor market demand than during recessionary periods.

During recessionary times, or even during duress for a particular firm, companies undergoing downsizing may ask some employees to resign to reduce the number of layoffs required voluntarily. 

In these instances, the employer may provide the departing employee an enhanced exit package, including additional weeks of severance pay, extended health insurance coverage, and other incentives.

In most circumstances, voluntary resignation prevents the employee from collecting unemployment benefits unless the employee quits for a “valid reason,” such as unsafe working conditions.

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What are the Reasons for Voluntary Resignation?

Better opportunities

In this circumstance, one employee resigns because of a special offer from another organization or corporation. This is especially common when the request is too good to refuse, or the current employer cannot match a comparable offer. At the same time, it is frequently difficult for the organization, they must accept the departure.

Health concerns

These can cause either voluntary resignation from services that are supported or discouraged. Sometimes an employee cannot perform their job duties because of various health issues. In this case, the employee may resign to recover, as continued work may deteriorate his health fully.

Career advancement

Some employees may leave voluntarily to pursue more challenging roles and advance their careers. This is a frequent occurrence when junior employees seek managerial positions.

A lot of people are yet to understand what a career path means: Career Path: Definition and How To Choose One

Personal conflict

Another reason an employee may choose to end his or her employment with an organization is because of unresolved or irreconcilable differences with the manager or other employees. Typically, some employees find it difficult to tolerate such an environment and thus voluntarily resign.

Employment conditions

Certain employees frequently resign when they believe their employer’s working conditions are substandard. They typically have expectations regarding job conditions, and when the employer cannot meet those expectations, they voluntarily resign.

Emotional and familial requirements

Additionally, some individuals depart from their professions because of severe emotional anguish and family concerns. In this situation, most of them always choose to ensure they have enough time to resolve their issues and reclaim a normal mental state that allows them to focus on their job and work environment.


Additionally, some individuals resign from their positions in a company because of an impending relocation to another state, city, or country. This may make it more difficult for them to commute to work, prompting them to submit a voluntary termination letter to the employer as he moves.

Stuck in a rut

Certain individuals, particularly those who have held the same post for an extended period, may feel the need for change because their career has likely reached a stalemate. This means there are no opportunities for advancement or role changes, so they choose to resign to get experience outside of their normal employment.


In this situation, someone leaves their employment because of old age or, more likely, exhaustion and a desire for rest. Retirement may come early for some, while others may choose to work until the designated retirement age. This suggests that a person may quit the work to rest or pursue other interests that may not require as much attention as the current employment does.

If you plan to retire, you must work out your finances properly. Discover: Financial Planning For Retirement: Overview And How It Works

What is the process involved in Voluntary Resignation?

Voluntary resignation by an employee often begins with a verbal or written announcement to their supervisor about their intention to resign. Additionally, there may be an impression of job abandonment when an employee cannot report working for three consecutive days without telling a supervisor.

Employees who wish to resign from their position are typically asked to give at least two weeks’ notice before their last day on the job. This is a professional manner to manage resignation: it gives the company time to recruit a replacement employee and the employee time to prepare for the transfer.

When an employee submits their resignation notice, their supervisor should immediately forward it to human resources, along with the person’s expected end date and reason for departing. 

Once human resources are contacted, the employee can expect to be asked to surrender the corporate property, finalize and submit final cost reports, summarize their post-termination benefits, and schedule an exit interview. Supervisors may be required to complete a Supervisory Termination Summary, which is then forwarded to human resources.

What are the Categories of Voluntary Resignation?

There are two broad categories of voluntary resignation from employment:

Encouraged resignation

This type of resignation is when an employee leaves an organization after making an informed decision. Occasionally, a manager or management may determine that the organization no longer requires the employee’s services.

In this scenario, the best course of action would be to meet with the employee and advise him of the decision to allow him to retire rather than face termination. The reasons for this can range from health concerns to redundancy, contract termination, and poor performance, to name a few. It is frequently employed as a face-saving tactic to assist employees in making such judgments before being ended.

Un-encouraged resignation

In contrast to resignation because of impending dismissal, an unencouraged resignation is a voluntary termination in which an employee leaves without formal or informal encouragement from the company or manager. 

It occurs for the employee’s reasons, which appears to be expected in many firms. The grounds for this voluntary employment termination range from greener pastures, relocation, sabotage, working conditions, and health to other personal reasons.

However, it is critical to remember that if your firm experiences a wave of voluntary resignations, it shows something is wrong with your business. This is the time to review and assess various parts of the company to determine why the trend is occurring.

More Definitions of Voluntary Resignation

Additional meanings of Voluntary Resignation are provided below;

1. Voluntary Resignation refers to the Executive’s voluntary resignation from the Company by delivering a Notice of Resignation. The term “Notice of Resignation” refers to a written resignation letter addressed to the Board and returned to the Company in compliance with the terms of this Section 6.4.

The Resignation Notice shall specify the resignation date and whether the Executive believes the resignation is for Good Reason. Suppose the Executive acknowledges that the resignation is for Good Reason. In that case, the Notice of Resignation shall also include in reasonable detail the Executive’s rationale for believing that the resignation is for Good Reason, including the elements of the definition of Good Reason Executive believes apply.

2. Voluntary Resignation means any termination of the Executive’s employment with the Company on the Executive’s initiative, including retirement, except for termination of the Executive’s employment for Good Reason, which shall not be considered a “Voluntary Resignation” for this Agreement.

3. Voluntary Resignation occurs when the Executive leaves Invacare freely and without being asked to do so by Invacare, except that any departure by the Executive will not be deemed Voluntary Resignation if the Executive had Good Reason to resign at the time of the resignation.

4. Voluntary Resignation refers to the Executive’s employment being terminated because of his voluntary resignation, which includes retirement, as defined in Section 3. APPENDIX I AUTHORIZED RELEASE This Legal Release (“Release”) is made between Advanced Energy Industries, Inc. (the “Company”) and (“Executive”) (individually and together, the “Parties”).


The reasons outlined in this article are the most often cited reasons for employees to quit their current positions. Controlling voluntary resignation is hard, as most employees do so voluntarily. As long as the resignation process is carried out under applicable legislation, there should never be an issue.

It is critical, however, to always provide a seamless transition once a person resigns to preserve continuity inside the firm.


Is voluntary resignation the same as termination?

Like resigning, you leave your place of employment voluntarily. … While quitting doesn’t always have to have a negative connotation, quitting instead of resigning typically means the company won’t hire you again in the future.

What are voluntary and involuntary resignation?

Resignation: This is a wholly employee-initiated voluntary termination of employment. Discharge – This is an employer-initiated involuntary termination of employment that typically results from the employee’s unfavorable behavior or subpar performance.

What are the reasons for voluntary resignations?

For instance, a shift in one’s circumstances due to family obligations, a decision to return to school, unhappiness with one’s workplace due to a hostile supervisor, a lack of appreciation for one’s work performance, and a lack of autonomy, challenge, or professional relationships (among others).



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