Labor matters

Can an employee resign with immediate effect?

An employee can also resign with immediate effect, but only for an urgent reason, and it must be done and communicated without delay. It is risky: without a valid urgent reason, the employee receives no damages or...

Published on July 8, 2021 by MKBjuristen.nl
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An employee can also resign with immediate effect, but only for an urgent reason, and it must be done and communicated without delay. It is risky: without a valid urgent reason, the employee is not entitled to compensation or a transition payment, may miss out on unemployment benefits, and the employer may even claim damages for disregarding the notice period.

It does not happen often, but an employee can resign with immediate effect, without a notice period. There are significant risks associated with this.

When is an employee allowed to resign with immediate effect?

Just like an employer, an employee can only do this in a serious situation: an urgent cause. The dismissal must be given without delay and the urgent cause communicated without delay. The Civil Code lists examples of urgent causes, such as an employer ceasing to pay wages, mistreating the employee or their family, or if continuation poses a serious danger to the employee's life.

Whether an employee validly resigned with immediate effect is often a subject of dispute — with the employer (who may be entitled to compensation) and with the UWV (regarding unemployment benefits). Acting hastily is therefore unwise.

The case: employee feels bullied and resigns

An employee had been employed for over twenty years (ECLI:NL:RBMNE:2021:2293). In 2017, he was assigned a new supervisor and received a negative performance review; his objection was rejected, and he agreed to a different position at a lower salary. Subsequently, reports were received regarding possible conflicts of interest and breaches of integrity; he was suspended during the investigation. The employer sought dissolution. The employee then resigned summarily due to what he called harassment and intimidation, and claimed over €180,000 in damages and transition payments through the court.

A wrong guess

The subdistrict court ruled that the employee had no urgent cause for dismissal. He was awarded no compensation, and because the employer had not acted with serious culpability, no transition payment either. Had he simply awaited the handling of the request for dissolution, he might have received a transition payment of around 48,000 euros. Moreover, by his abrupt dismissal, he disregarded the notice period, meaning the employer could in principle claim compensation from him (which the employer ultimately did not do).

Frequently Asked Questions

Can an employee resign with immediate effect?

Yes, but only for an urgent reason, such as non-payment of wages or assault. The dismissal and the reason must be given and communicated without delay.

What are the risks for the employee?

Without a valid urgent reason, he will not receive compensation or a transition payment, he may lose his unemployment benefits, and the employer may claim damages because the notice period was not observed.

Is it smart to walk away immediately in the event of a conflict?

Usually not. It is often wiser to await the outcome of the proceedings or to seek advice; resigning abruptly is often an expensive gamble.

Advice on summary dismissal

Summary dismissal is risky for both employee and employer. The employment lawyers at MKB Juristen help you make the right choice. View our expertise in employment law or schedule a consultation .

Please note: an article provides general information, but your legal situation may turn out differently.

A contract, conflict, or legal risk must always be assessed based on the facts, documents, evidentiary position, and interests. Are you in doubt? Have your situation assessed before you act.

Legal question regarding this article?

A blog provides explanation, but your situation often requires a concrete legal choice. MKB Juristen helps entrepreneurs with contracts, terms and conditions, GDPR documents, employment documents, disputes, and customized legal solutions.

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