'Give Me A Raise Or I’ll Quit': Has The Employee Resigned?

It can be surprisingly difficult for an employer to rely on statements such as "I quit" to establish that an employee resigned, particularly if the employee later indicates that they want to return to work. Courts require proof of a clear intention to resign in order to find that an employee terminated their employment. While the statement "I quit" may seem clear, courts will inquire into the circumstances in which the statement was made in order to determine whether the employee actually resigned.

A recent decision from the Nova Scotia Court of Appeal provides useful guidance on the law of employee resignations. In Kerr v Valley Volkswagen, 2015 NSCA 7, Kerr worked as a parts manager for Valley Volkswagen. Kerr gave the employer an ultimatum to either raise his salary by $100 per week or else he would quit. The employer waited three weeks to see if Kerr would change his mind, and when he did not they accepted his resignation. Kerr then brought a wrongful dismissal action alleging that Valley Volkswagon had terminated his employment.

The Court confirmed that the determination of whether an employee has resigned requires a careful examination of the context, having regard to all of the circumstances. The resignation must be voluntary and the employee's words or conduct evidencing a resignation must be clear and unequivocal. The court must be satisfied that there was an objective intention to resign.

The Court upheld the trial judge's decision that Kerr's threat to resign was made in clear and unambiguous terms. A reasonable person would have understood that the statement was to be taken seriously and was a true statement of intent.

The Court of Appeal also rejected Kerr's argument that even if the ultimatum...