Q. "Is it preferable to allow an employee designated for termination to resign?"
Answer:
Yes, allowing an employee to resign voluntarily can be preferable in certain situations. “Resignation in lieu of termination” can offer a more dignified exit for the employee and potentially reduce legal risks for the employer.
If the termination is not due to gross misconduct or a major policy violation, offering the option to resign can be a respectful alternative.
Some employees may prefer to resign, as it allows them to tell future employers the separation was voluntary. Allowing an employee to resign also can provide a greater degree of dignity and may help maintain a positive relationship.
Offering a resignation option can help mitigate the risk of legal action and, depending on your state law, may absolve employers from their responsibility to provide unemployment benefits.
If you offer the option to resign, consider providing a severance package and requiring a termination agreement or release which can provide clarity and protection for both parties. Also plan how you will handle reference-checking inquiries from other potential employers. Consistency is crucial to avoid legal complications.