Voluntary Termination of Employment

Where You Need a Lawyer:

(This may not be the same place you live)

At No Cost! 

 What Is Voluntary Termination?

Voluntary termination, also often referred to as voluntary resignation, is when an employee chooses to end their employment with an organization of their own accord. This can occur for a variety of reasons, such as retirement, a new job opportunity, personal circumstances, or dissatisfaction with the current job.

Here are scenarios exemplifying voluntary resignation for each of the mentioned reasons:


Scenario: John has worked at the same company for 30 years and has reached the age of 65. He has decided that it is time to retire and enjoy his golden years. John voluntarily resigns from his position, providing his employer with sufficient notice to allow for a smooth transition.

New Job Opportunity

Scenario: Sarah has been offered a higher-level position with a different company. The new job offers better benefits, a more challenging role, and increased opportunities for growth. Excited about the prospect, Sarah voluntarily resigns from her current job and accepts the new position.

Personal Circumstances

Scenario: Lisa’s elderly mother falls seriously ill and requires full-time care. Lisa, as the primary caregiver, decides that she needs to devote her time and attention to her mother’s well-being. In order to prioritize her family responsibilities, Lisa chooses to voluntarily resign from her job.

Dissatisfaction with the Current Job

Scenario: Mark has been working for a company for several years but has become increasingly dissatisfied with the work environment and management practices. He feels undervalued and believes that his skills and potential are not being utilized effectively. As a result, Mark decides to voluntarily resign in search of a more fulfilling and satisfying work environment.

These scenarios demonstrate different reasons why an employee may choose to voluntarily resign from their position. Each situation is unique, and individuals may have their own personal motivations and circumstances that lead them to make such a decision. Voluntary resignation allows employees to take control of their career path and make choices that align with their individual needs and goals.

What Are Some Legal Issues Associated with Voluntary Termination?

Legal issues can arise in the context of voluntary termination in several ways:

Non-Disclosure Agreement (NDA)

When leaving a job, an employee is still typically bound by any Non-Disclosure Agreements they signed during their employment. Breaching this agreement by sharing confidential or proprietary information can lead to legal consequences.

Let’s say an employee, after leaving a tech company where they had access to proprietary software code, shares this confidential information with their new employer, a direct competitor. This action would constitute a breach of the NDA they signed with the first company. The first company could potentially sue the employee for damages and to prevent further disclosure.

Employee Handbooks

These often contain policies regarding the process for voluntary termination. For instance, there might be a notice period requirement. Not following these guidelines might lead to disputes.

Imagine an employee who decides to quit their job to pursue another opportunity. The employee handbook clearly states a two-week notice period, but the employee leaves immediately without providing any notice. This could potentially lead to a dispute between the employer and the employee, especially if the abrupt departure causes the company undue hardship or violates the terms of an employment contract.

Final Paychecks and Benefits

There may be disputes regarding the timing and content of the final paycheck or issues related to the continuation of benefits.

Consider a situation where an employee quits their job but their employer fails to provide them with their final paycheck, including pay for unused vacation days, as per the state law or company policy. The employee could potentially take legal action to recover the owed wages.

Employee’s Rights

Employees have rights even when they voluntarily leave a job. For instance, they cannot be forced to resign or be subjected to a hostile work environment that pushes them to resign. This can be considered constructive dismissal, which is legally akin to wrongful termination.

Suppose an employee resigns due to a hostile work environment created by their supervisor, which includes constant unreasonable criticism and targeted humiliation. The employee might claim ‘constructive dismissal,’ arguing they were forced to resign due to intolerable working conditions. This could potentially lead to a lawsuit against the employer for wrongful termination, even though the employee technically resigned voluntarily.

The employee would need to demonstrate that the employer either intended to force resignation, or knowingly acted in a way that any reasonable person would have resigned, thereby making it a ‘constructive’ dismissal.

Are There Any Legal Remedies for Voluntary Termination Conflicts?

Yes, there are legal remedies available if conflicts arise due to voluntary termination:

Monetary Damages

If an employer violates an employee’s rights during the voluntary termination process, such as failing to pay owed wages or benefits, the employee may be entitled to recover monetary damages.

For example, if the employer does not provide the final paycheck on time or does not pay for accrued vacation time or bonuses that were promised, these would constitute wage violations.

Scenario: Let’s say an employee resigns but the employer refuses to pay for the unused vacation days, which according to the state law or company policy, should be paid out upon termination. If the employee sues the employer for these unpaid wages and wins, the court may award the employee monetary damages equal to the unpaid wages, and in some jurisdictions, additional penalties or interest might be added as well.

Enforcement of Contracts

If an NDA or another contract is violated, a court may enforce the contract terms and even order the violating party to compensate the other party.

If an employee violates a contract during or after voluntary termination, a court may order the employee to stop the breach (through an injunction) and/or pay damages.

Scenario: Consider a situation where an employee, after leaving a company, starts a competing business using the proprietary information they obtained during their employment, in violation of a non-compete clause in their contract. In this case, the former employer could take legal action against the employee. If the court finds that the contract was valid and the employee did indeed breach it, the court could enforce the contract by ordering the employee to stop their competing business and possibly pay damages to the former employer for any harm caused by the breach.

Can a Lawyer Help Me with Any Voluntary Employment Termination Issues?

Absolutely. Employment law can be complex, and having an experienced wrongful termination lawyer on your side can be extremely beneficial. A lawyer can provide guidance on your rights and obligations during a voluntary termination process, represent you if any disputes arise, and help you negotiate a severance package or other exit terms.

If your employer offers a severance package, a lawyer can review the terms and conditions to ensure they are fair and favorable to you. They can help you negotiate a better severance agreement, which may include additional benefits such as extended healthcare coverage, continued use of company resources, or outplacement services.

If you’re facing any issues related to voluntary termination, consider seeking help from a wrongful termination lawyer. LegalMatch is a reliable platform that can connect you with an experienced attorney who can assist you with your situation. Visit LegalMatch to find the right lawyer for your case today.

Law Library Disclaimer


16 people have successfully posted their cases

Find a Lawyer