Key Considerations for Handling Voluntary Resignations
- Date2025/04/11 17:07
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Q. Due to the company’s current business situation, we are in a position where workforce reduction is unavoidable.
Although the matter seems to have been amicably discussed through individual meetings,
you may be wondering what further preparations or precautions the company should take.
If the company inevitably has to proceed with a voluntary resignation recommendation (i.e., mutual separation),
the key concern will be how to minimize legal risks and prevent disputes.
the key concern will be how to minimize legal risks and prevent disputes.
Let’s go over the essential points to consider when handling voluntary resignation (recommendation for resignation).
🔹 What should be considered when proceeding with a voluntary resignation?
Since a voluntary resignation is initiated by the company’s suggestion, the most important thing is to obtain written confirmation that the employee agrees to resign at the company’s recommendation.
This must never be done verbally.
If there is no written agreement, the employee may later claim that the resignation was actually a unilateral dismissal by the company.
This must never be done verbally.
If there is no written agreement, the employee may later claim that the resignation was actually a unilateral dismissal by the company.
Keep in mind that voluntary resignation and dismissal are entirely different concepts.
To minimize legal risks, it is crucial to leave evidence that the employment relationship ended via mutual agreement (voluntary resignation) and not a dismissal.
(For details on the difference between voluntary resignation and dismissal, please refer to our dedicated post.)
To minimize legal risks, it is crucial to leave evidence that the employment relationship ended via mutual agreement (voluntary resignation) and not a dismissal.
(For details on the difference between voluntary resignation and dismissal, please refer to our dedicated post.)
🔹 How should a Voluntary Resignation Agreement be written?
It is essential to prepare a Voluntary Resignation Agreement that clearly outlines the conditions of the resignation as well as the obligations of both the company and the employee.
The following items should be included in the agreement:
The following items should be included in the agreement:
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Details of the resignation: last working day, official resignation date, etc.
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Severance or goodwill payment details: amount (pre-tax/post-tax), timing and method of payment, etc.
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Prevention of legal disputes: clauses on non-litigation (waiver of future claims), confidentiality obligations, etc.
Additionally, it is recommended to document the content of all meetings and discussions held during the process of offering voluntary resignation.
🔹 What are the risks to be aware of when proposing voluntary resignation?
Voluntary resignation, if mutually agreed upon, is a preferred method to terminate the employment relationship in a smooth manner.
However, since it is based entirely on the employee’s voluntary consent, it must not be conducted in a coercive or forceful manner.
However, since it is based entirely on the employee’s voluntary consent, it must not be conducted in a coercive or forceful manner.
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Workplace harassment concerns: If the company excessively pressures or coerces the employee into resigning, it may be considered workplace harassment.
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Potential for unfair dismissal claims: If the agreement was signed under coercion or no proper documentation exists, the employee may later claim it was not a voluntary resignation but an unfair dismissal.
Therefore, it is crucial to hold sufficient discussions with the employee to agree on the terms of resignation.
Given the various legal risks involved in this process, we emphasize the importance of seeking professional advice to find the most appropriate solution and ensure a smooth and safe procedure.
At Saero Labor Law Firm, based on extensive experience with numerous voluntary resignation cases,
we provide practical and professional guidance to help you reach a successful and amicable agreement.
we provide practical and professional guidance to help you reach a successful and amicable agreement.
To learn more about Korean labor law, or to inquire about other services we provide, please email us at saero@saerolabor.com to request our firm profile or schedule a brief introductory call.