Ask HR: The Case for “Resignation in Lieu of Termination”

SHRM President and Chief Executive Officer Johnny C. Taylor, Jr., SHRM-SCP, answers HR questions each week.

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A friend of mine was recently allowed to resign from her job instead of being terminated. I run a small business and have had to terminate employees for various reasons. Are there instances where allowing an employee designated for termination to resign is preferable? —Davison 

Termination is never an easy task, but handling it the right way can pave the best possible path forward for both the employer and employee. Allowing an employee designated for termination to resign voluntarily can be preferable in certain situations. “Resignation in lieu of termination” can offer a more dignified exit for the employee and potentially reduce legal risks for the employer. There are some factors to consider when determining if resignation in lieu of termination is appropriate.

If the termination is not due to gross misconduct or a major policy violation, offering the option to resign can be a respectful alternative. This approach is suitable for cases involving failure to meet performance or productivity standards.

Some employees may prefer to resign rather than be terminated, as it allows them to tell future employers that the separation was voluntary. This can be beneficial for their future job prospects. Allowing an employee to resign also can provide a greater degree of dignity and may help maintain a positive relationship, which can be important for small businesses and close-knit teams.

Offering a resignation option can help mitigate the risk of legal action and, depending on your state law, may absolve employers from their responsibility to provide unemployment benefits. Consult with a legal expert to clarify your specific obligations. Treating voluntary resignations in lieu of terminations the same as other discharges, with documented performance improvement plans, ensures consistency and reduces potential risks. 

Always plan how you will handle reference-checking inquiries from other potential employers. Consistency in your responses is crucial to avoid any legal complications. If you offer the option to resign, consider providing a severance package and requiring a termination agreement or release. This can provide clarity and protection for both parties.

By considering these factors and planning ahead, you can handle employee separations in a fair, respectful, and legally sound manner.

I work at a manufacturing assembly plant. The component assembly table at my workstation should be adjustable for the operator’s height. Unfortunately, it has been stuck for months and causes discomfort for me and another operator. Are my employers obligated to provide and maintain ergonomically correct equipment? —Donovan 

Occupational Safety and Health Act (OSHA) regulations do not specifically mandate that employers provide ergonomic equipment, but they do require employers to ensure a safe and healthy work environment. This includes addressing ergonomic hazards, which can lead to musculoskeletal disorders (MSDs) and other injuries.

According to the Occupational Safety and Health Administration (OSHA), employers must maintain a workplace free from recognized serious hazards, including ergonomic ones. This means they must address issues that could cause discomfort or injury, such as malfunctioning equipment.

Common ergonomic risk factors include repetitive tasks, awkward postures, heavy lifting, and reaching overhead. In your case, a nonadjustable table could lead to such risks, potentially causing MSDs.

Here are some steps you can take to address your workstation malfunction:

1. Report the issue. Inform your supervisor or human resource department about the problem. Document any discomfort and potential hazards you and the other operator are experiencing.

2. Request an ergonomic assessment. Ask for an ergonomic assessment of your workstation. This assessment can identify risk factors and suggest adjustments or equipment changes to improve safety and comfort.

3. Propose solutions. Suggest potential solutions, such as repairing the adjustable table, replacing it with a new one, or providing other ergonomic tools or equipment to help mitigate the risks.

4. Refer to OSHA guidelines. Point out that OSHA encourages employers to implement programs and measures to reduce ergonomic hazards. Referencing OSHA’s voluntary guidelines for specific industries can bolster your case for making necessary adjustments.

Be aware that some states have their own occupational safety and health laws. Ensure your employer complies with applicable state-specific regulations.

If an employer fails to address recognized ergonomic hazards, OSHA can cite the employer under the General Duty Clause or issue ergonomic hazard letters.

Ultimately, taking these steps to ensure your workstation is safe and comfortable is in the best interest of employees and employers. Proper ergonomic equipment can lower injury rates and associated workers' compensation costs, reduce absenteeism and turnover, and increase work efficiency and productivity. Communicating the importance of ergonomic adjustments and working collaboratively with your employer to find solutions are essential to maintaining a safe and productive workplace.