
When an employee is being investigated for serious misconduct, it can be frustrating if they suddenly resign before the process is complete. This is often called a tactical resignation. So, what can you, the employer, do in this situation?
5 key things to consider:
1. You can’t refuse an employee’s resignation
Employees have the right to resign at any time, even if a disciplinary process is ongoing. You can’t reject a resignation just because it’s inconvenient. The only exception is if the resignation was made in the heat of the moment, such as during an angry outburst. In that case, you can ask the employee to confirm their decision after they’ve had time to cool off.
2. You can continue the disciplinary process after resignation
Even if an employee resigns, you can still complete your internal disciplinary investigation. This is especially important if:
- The allegations are very serious.
- The employee is in a regulated role or position of trust.
- You might be asked to provide a reference later.
By completing the process, you’ll have a formal outcome on record—something that could be important for safeguarding or reputation purposes. You may need to report the outcome to a regulator.
3. Continuing the process could save you money
If the employee resigns but is still working their notice, and you complete the investigation and find gross misconduct, you may be able to dismiss them without notice. This means you wouldn’t have to pay for the remainder of the notice period—saving your organisation money.
4. A finding of gross misconduct can impact exit benefits
Even if the employee resigns, a finding of gross misconduct can still affect exit payments like:
- Unpaid bonuses
- Share schemes
- Long-term incentive plans
These often include clauses that reduce or remove payment if the employee is found guilty of gross misconduct. Always check the terms of each benefit carefully.
5. A caution about references
If the disciplinary process is dropped when the employee resigns, you usually can’t mention the allegations in future references. Why? Because the issue wasn’t fully investigated, and the employee didn’t get a chance to respond. Check your company’s reference policy. If possible, stick to a basic factual reference to reduce legal risk.
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