Whether you’re dealing with a planned career change or an unexpected layoff, leaving a job can be logistically complicated and emotionally overwhelming. Many employees have their hands full, managing their next steps and ensuring they land on their feet after a resignation or termination. However, many don’t fully understand the legal rights and options that come with their situation.
In this blog post, we’ll explain what employees should know about the difference between resignation and termination. We’ll explore the practical and financial consequences of termination vs resignation and discuss what they mean for employees’ rights.
Is Termination the Same as Resignation?
Both termination and resignation are ways to end an employment relationship. However, they go about it in different ways.
Termination happens when the employer decides to remove an employee from their job. This could be because of employee performance issues, repeated tardiness, or inappropriate behavior. These situations are known as termination for “cause.” However, termination can also happen without cause or fault on the part of the employee, e.g., layoffs and downsizing due to economic constraints.
By contrast, resignation involves an employee willingly leaving their job due to dissatisfaction, a new employment opportunity, or a planned move. Many employees who resign tell their employer in advance before they depart, such as giving two weeks’ notice.
Resignation isn’t the only way employees can exit a job by choice. Other forms of voluntary termination include retirement, mutually agreed upon departures, and job abandonment.
When Is a Job Termination Illegal in California?
The law gives employers leeway when terminating employees. Unless your employment contract says otherwise, your employer can legally fire you anytime and for almost any reason.
However, California law forbids employers from dismissing employees for specific illegal reasons. Unlawful reasons for termination include:
- Discrimination. Under California and federal law, firing someone because of their race, gender, religion, disability, age, military status, or other protected characteristics is illegal.
- Whistleblower retaliation. Employees who report safety hazards, illegal activity, ethics violations, harassment, or other misconduct receive legal protection from all forms of employer retaliation, including termination. Firing an employee who refuses to participate in unlawful activity is also illegal.
- Backlash for exercising legal rights. Employers cannot punish employees simply for exercising their rights under federal and state law, including requesting unpaid medical leave, discussing wages with coworkers, organizing a union, and taking time to vote.
When an employee loses their job for one of these illegal reasons, it’s known as wrongful termination. Under state and federal laws, employees who suffer wrongful termination can hold their employer legally responsible for violating their rights.
What Are My Rights After Termination vs Resignation?
Whether you leave a job by termination or resignation can impact your legal rights and options for moving forward. Let’s look at what California law says about employee rights in each situation.
Legal Rights After Job Resignation in California
Employees who willingly resign from their jobs generally have the right to:
- Timely final paycheck. Under California law, employers must give employees their final paycheck within 72 hours of the announced resignation. If an employee gives their company more than 72 hours’ notice of their exit, employers have until the employee’s last day of work to issue final pay.
- Continued health coverage. Federal and state COBRA laws allow eligible employees to access health insurance coverage at group rates temporarily after leaving a job.
- Potential legal claims. Former employees may take legal action to hold an employer accountable for certain labor law violations, such as wage theft, discrimination, harassment, and whistleblower retaliation. However, pursuing a successful claim for rights violations is often more challenging if an employee has left their job willingly.
In California, there is generally no significant difference in the rights of employees who leave their jobs via voluntary termination or resignation. However, if you leave your job by choice, you typically aren’t eligible for unemployment benefits.
Legal Rights After Job Termination in California
California employees unwillingly dismissed from their jobs have the right to:
- Immediate final paycheck. Your employer must give you your final paycheck immediately after terminating you, no matter the reason. This paycheck should include all unpaid and earned wages, including any unused vacation time you accrued.
- Continued health coverage. You can still be eligible for state or federal COBRA health insurance continuation even if you were fired.
- Possible unemployment benefits. If you lost your job through no fault of your own, you can receive temporary financial support through the state’s unemployment benefits program.
- Possible severance pay. Employees with severance agreements may be eligible for benefits, depending on their employment contract, the details of their severance agreement, and whether they were fired for cause. These benefits include severance pay, payouts for unused vacation days, access to outplacement services, and reimbursement for certain expenses.
- Wrongful termination protections. Employees fired for illegal reasons can seek compensation from an employer who violated their rights. Under California law, employees with successful wrongful termination claims may be able to recover financial damages, such as back pay and reimbursement for lost benefits.
Employees who are involuntarily terminated can still enjoy many rights under California law. However, access to some of these rights may depend on the reason for your dismissal. For example, employees fired for cause typically do not qualify for unemployment benefits. Illegal activity or serious misconduct may also limit your post-termination rights.
Passionate Advocates for California Employees
Understanding the legal difference between resignation and termination is essential for protecting yourself when an employment relationship ends. After a dismissal, what you do or don’t do can have serious, long-term consequences for your financial security and future career. When your livelihood is at stake, you can’t afford to make assumptions about your rights and options.
The wrongful termination attorneys at Tomorrow Law™ understand how stressful it can be to navigate this period. Our legal team has spent decades helping California employees understand and exercise their rights after planned and unplanned job dismissals. If your rights have been violated, we’re prepared to help you take action to hold your employer accountable for their wrongdoing. Since we operate on contingency fees, you don’t owe us anything unless we win you compensation. Contact our office to schedule a free consultation today.
Resources:
Cal. Labor Code § 1102.5, link.
Cal. Elections Code § 14000, link.
Cal. Labor Code § 233, link.
National Labor Relations Act, § 158, link.
David Bibiyan, a top attorney at Tomorrow Law™, specializes in employment law, fiercely defending employees in cases of discrimination, harassment, wrongful termination, and wage issues. Known for his deep legal knowledge and dedication, he consistently secures favorable outcomes through skillful negotiation and litigation. His passion for justice drives his commitment to workers’ rights and fair employment practices.
Loading...