In employment law, one fundamental principle stands out: the right of both employers and employees to terminate the employment relationship. However, nuances exist, particularly concerning the circumstances under which an employer or company can be held liable for dismissing an employee without just cause and excuse, especially when the employee has tendered their resignation voluntarily. Employment law recognizes the right of individuals to make decisions regarding their employment. When an employee voluntarily resigns from their position within a company, they are exercising their right to terminate the employment contract. This act signifies a clear intention to end the working relationship, typically for reasons personal, professional, or a combination of both. In such instances, the employer is not obligated to provide just cause or excuse for the termination. The resignation, being voluntary, absolves the employer of any liability associated with dismissal without cause. In the case of Lee Yoke Hwa v Fulloop Sdn Bhd which was handled by our Partner, Lachman Kumar, the court held as follows:-
“Indeed it is amply clear to this Court that the Claimant’s resignation was voluntary and her claim of a dismissal without just cause or excuse is merely an afterthought. The Claimant having voluntarily resigned from her employment even before the expiration of the notice period given by the Company cannot now be allowed to backpedal from her decision that she had made what more when the Claimant had enquired from COW as to whether she could continue to work with the Company after tendering her resignation letter and was however informed by COW that the Company was not prepared to accept her back as an employee. It was perfectly justified for the Company to refuse to accept the Claimant back as its employee after the Claimant had tendered her resignation letter. [19] The law is clear in that an employee who tenders his/her letter of resignation, ends his/her employment contract unilaterally and upon resignation, the relationship of employer and employee is dissolved.”
However, it must also be remembered that certain conditions must be met to ensure the resignation is genuinely voluntary. Coercion, duress, or any form of undue influence by the employer could invalidate the resignation. For instance, if an employer creates a hostile work environment or threatens unfavorable consequences unless the employee resigns, the resignation might not be considered voluntary under the law.