How to Write Resignation in Lieu of Termination Letter

There are times when an employer is faced with a condition when s/he wants to discontinue the working contract with an employee but at the same time s/he cannot terminate the contract. This situation usually happens because the employee does not do something which can violate the company’s policy but they cannot meet the company expectations. When it occurs, the employer gives the choice of the employee to submit the resignation in lieu of termination letter. In what aspects are the two letters different and why is the employee asked to resign instead of terminate their contract? We will explain the difference as well the sample of how to write the resignation in lieu of termination letter in a professional tone.

Is Resigning in Lieu of Termination a Good Choice?

These two terms have the same meaning, which is discontinuing the working contract. Yet, if an employee is writing the resignation in lieu of termination letter, they deserve the unemployment compensation like benefits and severance package. It will not affect the employee’s career as much as when s/he is getting terminated. The resume will stay ‘clean’ and s/he can explain the reason why the resignation happens.

How to Explain Resigning in Lieu of Termination in Interview?

When an employee applies for a new job, there must be a question regarding the resigning in lieu of termination that shown in the resume. If the situation allows, explain the reason behind the resignation without bringing the negative things of the former company. Yet, if it is not possible to tell the details, be honest to the interviewer but assure them that all the problems have been resolved.

Writing Resignation in Lieu of Termination Letter

If you are an employer whose employee is given the choice of resigning instead of being terminated, you should inform him/her by sending a resignation in lieu of termination letter. The letter has to be clear and is written in professional tone. Make sure there is no misunderstanding in the delivering the news within the letter. If you are facing the situation and still have no idea of how to writing one, the letter below can be one of the examples.

Dear Mr. Kendrick,

As you know, we have had the employee annual performance review last week. During this meeting, you are getting commented that your performance has been declining since the past six months. It is regretful that your performance does not meet the company’s expectation.

If you might remember, we have a separate meeting to discuss about your performance two months ago. Back then, you promised me to improve your work and be in the right track to keep up with other employees. However, it does not happen for the next few months. It is very regrettable at the same time because of your potential and courage to keep learning. Also, your positive energy brings warmth to the company. Thus, I would like to give you the opportunity to resign so that you will not have the termination record in your resume.

Kindly consider this option by sending the resignation letters in two weeks. If you do not receive the letter by May 31 2020, I would proceed with the contract termination. I will make sure you receive the severance package along with the benefits you deserve. I wish the best for your career path in the future.



Tom Green

Now, hopefully you are not confused with the difference between the termination and resignation. Have the best of career for all of you.

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