When an employee says they no longer want to work, can an employer safely treat that as a resignation? Not necessarily.
A recent Fair Work Commission decision is a useful reminder that employers need to be particularly careful when an employee makes comments about leaving work during an emotional or difficult conversation.
In Jung Hong v Green Drake Pty Ltd as Trustee for the Grey Unit Trust t/as Grey Farming [2026] FWC 1934, the Commission considered whether an employee had resigned or had instead been dismissed by his employer.
The background
Mr Hong had worked as a farm hand for Grey Farming for approximately 15 years and had a close working relationship with the farm owner.
The employment relationship became uncertain after discussions about Mr Hong’s personal circumstances and his wife’s plans to establish a permanent jewellery business some distance from the farm. Mr Hong also told the employer that he was taking medication for depression and anger management.
The employer became concerned about Mr Hong’s ability to safely undertake farm work and asked him to obtain a medical certificate before returning to work.
Mr Hong attended his doctor but did not obtain a medical certificate. He then returned to the farm to discuss the situation with the employer.
During a conversation in the workplace car park, the employer asked Mr Hong whether he wanted to continue working for the business. Mr Hong said “no”.
The employer understood this response to mean that Mr Hong was resigning.
Mr Hong, however, understood the conversation differently. He believed he was being dismissed when he was told to leave the work vehicle, collect his belongings and arrange for someone to pick him up.
The employer then processed Mr Hong’s final pay.
What did the Commission decide?
The Commission accepted that the employer genuinely believed Mr Hong had resigned. However, that was not the end of the question.
The issue was whether Mr Hong had clearly communicated an intention to resign, viewed objectively and in the circumstances in which the conversation occurred.
The Commission found that there was a real possibility of misunderstanding.
A number of factors were important, including Mr Hong’s emotional state, the circumstances surrounding the conversation, his personal and health difficulties, and the fact that English was not his first language.
Importantly, Mr Hong had not clearly said that he was resigning. There was also no discussion about giving notice or bringing the employment relationship to an end.
The Commission considered that a reasonable employer in those circumstances would have taken steps to clarify Mr Hong’s intentions before treating the employment as having ended.
Instead, the employer proceeded on the assumption that Mr Hong had resigned, collected the employer’s property and processed his final pay.
The Commission therefore found that the employer had, in substance, brought the employment relationship to an end.
The lesson for employers
This decision highlights an important practical point:
An employer should not necessarily treat an ambiguous statement as a resignation simply because it can reasonably be interpreted that way at the time.
Where an employee is upset, distressed, angry or otherwise not communicating clearly, there may be a risk that statements such as “I don’t want to work here anymore”, “I’m done” or even “no” are later interpreted differently by the employee and employer.
Before treating an employee as having resigned, employers should consider:
Clarify the position. Ask the employee directly whether they are resigning and whether they intend to end their employment.
Do not rush. Where circumstances permit, allow the employee some time to reflect before finalising the position.
Get it in writing. A clear written resignation provides much greater certainty than relying on an ambiguous verbal conversation.
Document the circumstances. Keep a record of what was said, who was present and the circumstances in which the alleged resignation occurred.
Be particularly careful where an employee is distressed. If there are obvious circumstances suggesting that the employee may not be communicating clearly, additional care should be taken before treating their words as a resignation.
Takeaway
The safest approach is simple: make sure you have actually received a resignation before acting on one.
Processing final pay, collecting company property and telling an employee that their employment has ended can potentially turn an ambiguous conversation into an employer-initiated termination.
As this case demonstrates, a genuine belief that an employee has resigned will not necessarily protect an employer if the circumstances indicate that the employee did not clearly intend to resign.
Case: Jung Hong v Green Drake Pty Ltd as Trustee for the Grey Unit Trust t/as Grey Farming [2026] FWC 1934.
*This article is intended to provide general information only and should not be relied upon as legal advice. Specific advice should be obtained for individual circumstances.*
