Verbal Resignation In Australia: What To Do When An Employee Quits

It happens more often than you’d think: a team member says “I quit” in the heat of the moment or lets their manager know verbally that they’re moving on.

As an employer, you need to know whether a verbal resignation is valid in Australia, how to confirm it, and what to do next so you don’t risk unfair dismissal claims, payroll headaches or handover chaos.

In this guide, we’ll walk through when a verbal resignation is binding, how to manage it step-by-step, notice periods and pay, and the policies and contracts that make this process smoother for your business.

What Is A Verbal Resignation, And Is It Legally Binding?

A verbal resignation is when an employee communicates their intention to end their employment orally rather than in writing. Under Australian law, resignations don’t always need to be in writing to be effective-what matters is whether the employee clearly communicated an intention to resign and you accepted it.

However, context matters. If the words were said in anger during a heated exchange, or it’s unclear what the employee meant, best practice is to confirm the position once emotions have cooled (usually within 24-48 hours). A short pause can avoid disputes about whether there was a genuine resignation.

Ideally, your Employment Contract requires resignations to be in writing and sets out how notice must be given. Even if an employee resigns verbally, you can rely on your contract to request a written confirmation before acting on it.

Should You Accept A Verbal Resignation? Employer Options In Australia

You have options. The right approach depends on the clarity of the resignation, your contract terms and any risks (like access to sensitive data).

1) Ask For Written Confirmation

Where possible, ask the employee to confirm their resignation in writing (email is fine). This prevents later disagreements about timing, notice and agreed handover.

2) Accept The Resignation But Confirm In Writing

If the employee won’t or can’t send a written note, you can still accept a clear verbal resignation. Follow up with an email confirming what was said, the resignation date, the notice period and next steps. Invite the employee to correct any details if you’ve misunderstood.

3) Clarify Resignations Made “In The Heat Of The Moment”

If the words were said impulsively (for example, after a tough performance meeting), consider giving the employee a brief cooling-off window to confirm. This is a practical way to reduce risk of claims that the resignation wasn’t genuine.

4) Check The Notice Period

Most contracts specify how much notice an employee must give. If they don’t, the applicable award, registered agreement or the National Employment Standards may set the minimums. For a refresher on typical timeframes and how to calculate them, see resignation notice periods.

Step-By-Step: How To Handle A Verbal Resignation (Employer Checklist)

Step 1: Note The Details Immediately

As soon as you can, write down what was said, when, and who was present. If the resignation came via phone call, send a short summary email to the employee confirming your understanding.

Step 2: Request Written Confirmation

Ask the employee to email their resignation, including their proposed last day in line with the notice period in their Employment Contract. If they can’t or won’t, proceed with your written confirmation and ask them to acknowledge it.

Step 3: Confirm The Notice Period And Working Arrangements

Confirm the required notice length and whether the employee will work it out, be placed on garden leave, or receive payment in lieu. Be clear about access to systems, any conflict of interest issues, and expectations for handover.

Step 4: Plan The Handover

Identify critical tasks, deadlines, client and supplier relationships, and any access or permissions to be transferred. Document this as a simple handover plan.

Step 5: Protect Information And Restrict Access

Remove or limit access to data and systems where appropriate and remind the employee of confidentiality and post-employment obligations. If you have a Staff Handbook or workplace policies, point to the relevant clauses.

Step 6: Calculate Final Pay And Entitlements

Work out outstanding wages, accrued leave, and any other entitlements. If you’re considering replacing some or all of the notice with a lump sum, check your options for payment in lieu of notice.

Step 7: Close Out Properly

Issue a written acceptance of resignation, confirm the last day, collect company property, and complete any exit forms. Depending on the situation, you may also consider a short-form settlement or Deed of Release to tidy up any claims.

Notice Periods, Pay And Final Entitlements

Once a verbal resignation is accepted, the big questions are usually about timing and money.

How Much Notice Is Required?

Start with the contract. If the contract sets a longer period than the award, the contract usually applies (provided it isn’t less favourable than the minimum). Where there’s no contract clause, look to the relevant industrial instrument or the National Employment Standards, and confirm whether any additional employee age or length-of-service factors apply. For more detail, see resignation notice periods.

Can You Pay Out The Notice Instead?

Yes, in many cases employers can pay wages in lieu of all or part of the notice period instead of requiring the employee to work it. If you go this route, make sure you calculate the amount correctly and confirm arrangements in writing. This area can be technical, so it’s worth reviewing the rules around payment in lieu of notice.

What If The Employee Refuses To Work Their Notice?

If an employee resigns verbally and then doesn’t attend work, you may have options. You can consider deducting notice not worked if a lawful and reasonable clause in the contract allows it, subject to the Fair Work Act rules about permitted deductions and set-off. It’s important to tread carefully-start by reviewing guidance on an employee not working the notice period and seek advice before making any deductions.

Garden Leave vs Working Out The Notice

Garden leave lets you keep the employee employed (and paid) through their notice while directing them not to attend work. This can help protect client relationships and confidential information-especially when the employee is moving to a competitor. To use it safely, ensure your contract supports it and follow fair procedures; our overview of garden leave explains how it works in practice.

Final Pay And Accrued Leave

Final pay generally includes outstanding wages, any accrued annual leave, and other entitlements owed under the contract or industrial instrument. Pay timelines can be set by awards or agreements-so check the applicable instrument and state-based rules on when final payments must be made.

Managing Risk With Contracts, Policies And Process

Verbal resignations are much easier to manage when your paperwork sets the ground rules.

• Employment Contract: Set clear notice requirements, garden leave rights, confidentiality, IP ownership and post-employment restraints. These clauses give you predictable options when someone resigns without warning.
• Staff Handbook or Workplace Policies: Outline resignation procedures, return-of-property requirements, conflict checks and handover expectations. Policies help managers respond consistently across the business.
• Exit Checklist And Handover Templates: Keep standard checklists for IT access, client updates, and asset returns. A simple template saves time and reduces risk of missed steps.
• Deed Of Release (Optional): In some circumstances-especially where there’s a dispute-consider documenting final arrangements in a Deed of Release to resolve claims and confirm confidentiality and non-disparagement.

For junior or probationary employees, your options may be different. It’s worth revisiting how termination during probation works alongside resignations so your approach is consistent with any minimum employment periods and notice rules.

Common Scenarios (And How To Navigate Them)

“I Quit” In A Heated Moment

Thank the employee for raising their concerns and offer a short cooling-off window. Follow up with an email noting what was said and asking them to confirm by a set time. If they don’t retract, proceed with the resignation process.

Resignation With Immediate Exit

Confirm the required notice, then decide: will they work it, go on garden leave, or receive payment in lieu? Communicate your decision in writing and align on the last day, handover and property returns.

Resignation During Performance Management

Document the timing, keep the tone professional and non-coercive, and confirm the employee’s decision in writing. Make sure your performance records and the resignation documents would make sense to an external reviewer if ever needed.

Resignation With Sensitive Client Or IP Access

Consider garden leave, tighten access, and remind the employee of confidentiality and restraint obligations under their Employment Contract. Prioritise a clean handover of key relationships.

Key Takeaways

• A verbal resignation can be legally effective in Australia if the intention to resign is clear and you accept it-but always confirm in writing.
• Your Employment Contract and workplace policies should set out how resignations are given, notice periods, garden leave rights and confidentiality obligations.
• Follow a simple process: document what was said, request written confirmation, confirm notice and working arrangements, protect access, and finalise pay and handover.
• Know your options for notice: working out the period, garden leave, or payment in lieu of notice, and manage “no-show” risks with lawful contract clauses.
• Use checklists, policies and contracts to reduce disputes and speed up the exit-consider a Deed of Release in higher-risk exits.
• If anything feels uncertain, get tailored advice early-this is often the quickest way to protect your business and maintain a professional exit.

If you’d like a consultation on handling a verbal resignation in your workplace, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.