It happens more often than you might think: an employee resigns, you accept it, start planning to fill the gap… and then they come back and say, “Actually, I want to withdraw my resignation.”
For small business owners and managers, this can feel like a no-win situation. If you say yes, you might disrupt your plans and create a precedent. If you intend to say no, you might be concerned about legal risk, reputational fallout, and/or an unfair dismissal or other claim.
A client recently reached out to us with this exact issue: they had received a written resignation with notice, accepted it in writing, and immediately started sourcing a replacement and making associated arrangements. A couple of days later the employee tried to withdraw their resignation.
The employer’s preference was to not agree to the request, but they were concerned about risks so reached out to us for guidance.
So just what are your obligations as an employer in this scenario, and what are the risks to watch for?
The starting point: the common law position
Under common law principles, once an employee has given notice of resignation, they generally can’t simply withdraw it.
There is a narrow exception, sometimes described as a “heat of the moment” resignation. In everyday terms, this is where an employee resigns impulsively in an emotionally charged situation (for example, during an argument or under immediate stress), and then withdraws the resignation immediately once they’ve had a chance to cool off.
Where the resignation is written and includes notice, it’s usually much harder for an employee to argue it was a heat-of-the-moment decision. A written resignation tends to suggest the employee had time to think it through before putting it in writing. Similarly, where the employee waits a day or 2 to seek withdrawal of the resignation (as happened in our client’s case), it significantly limits any claim that the resignation was made in the heat-of-the-moment.
The key principle: mutual consent is required
In most situations, a resignation can only be withdrawn if both parties agree.
That means:
- The employee does not have a unilateral right to change their mind.
- The employer is not automatically required to accept the withdrawal.
- If the employer has already accepted the resignation and started acting on it (for example, recruiting, reallocating work, notifying clients, adjusting rosters), that reliance can strengthen their position to deny the withdrawal.
While as an employer you might sometimes feel pressured to “do the nice thing” and accept the withdrawal, it’s important to understand that you are not generally obliged to do so, and doing so is effectively a new agreement between you and the employee.
The risk angle: what can go wrong if you handle it poorly?
Even where the law is on your side, the way you respond can create risk. Here are the main risks to be alert to.
1) Fair Work claims (yes, it can come up)
If an employer refuses a request to withdraw a resignation, an employee may try to argue that the employer’s refusal effectively ended the employment (and therefore constitutes a dismissal). Depending on the specific circumstances, they might feel they have grounds for an Unfair Dismissal Claim or a General Protections Claim.
If they pursue it, they generally have 21 days from the date of dismissal to lodge a claim with the Fair Work Commission (FWC). In this context, the “date of dismissal” would likely be the date you confirmed you would not allow the resignation to be withdrawn.
In many cases, the risk of a successful claim is low where:
- the resignation was considered (not heat-of-the-moment),
- you acknowledged/accepted it in writing, and
- you relied on it and commenced taking genuine steps to replace the role.
But “low risk” doesn’t mean “no risk”, especially if communications are unclear, there’s a history of conflict, or emotions are running high.
2) Arguments about duress, pressure, or emotional distress
Sometimes an employee will say they resigned under pressure, bullying, or emotional distress.
This matters, because the FWC has occasionally found resignations to be essentially invalid where they weren’t truly voluntary (for example, where there was pressure/coercion, or the employee felt they had no other option and/or didn’t really intend to resign).
If an employee raises anything along these lines, treat it as a red flag. It’s a strong sign you should get specific advice promptly, because the facts and the paper trail make all the difference.
3) Operational and reputational risk
Even if you can lawfully refuse the withdrawal, consider the practical impact:
- Will the employee disengage during the notice period?
- Is there a risk of conflict, gossip, or a drop in morale?
- Are clients or customers already aware of the departure?
- Have you made commitments to a replacement candidate?
This is why a calm, professional response, and a clear process, is so valuable.
Practical recommendations
Always acknowledge/accept a resignation in writing, regardless of whether they are given verbally or in writing. This helps avoid later disputes about what was said, what was intended, and whether the resignation was “real.” It’s particularly useful if the resignation was delivered emotionally or unexpectedly.
If after you’ve done that the person seeks to withdraw their resignation (and you don’t agree), taking these steps can significantly reduce risk.
1) Respond in writing
Respond promptly and professionally to their withdrawal request in writing. Be clear and respectful.
A simple approach is to:
- acknowledge the request to withdraw the resignation,
- confirm you are not agreeing to the withdrawal,
- confirm the resignation stands and the employment will end on the original date, and
- (where relevant) note that you have already acted in reliance of the resignation.
Clarity is your friend here. Vague responses (“we’ll see how we go”) can create confusion and disputes later.
2) Document the timeline and your reliance
Keep a clear record of:
- when the resignation was received,
- how it was communicated (email, letter, conversation),
- when and how you accepted it,
- any steps you took in reliance on it (job ads, interviews, offer made, training plan, client communications), and
- when the employee requested to withdraw.
If a claim ever arises, this evidence can be particularly helpful.
3) Don’t ignore the “why”
Even if you’re not agreeing to the withdrawal, it’s still worth understanding what’s driving it.
- Is the employee worried about finances?
- Were they reacting to a conflict that can be resolved?
- Are they alleging bullying, pressure, or unfair treatment?
The answer doesn’t automatically change your legal position, but it can change your level of risk and impact how you might manage the notice period.
So… do you have to accept the withdrawal?
In most cases no, not unless you agree to it.
But the “right” decision for your business depends on the full context: the employee’s role, the reason for the resignation, whether you’ve already started replacement steps, and whether there are any red flags suggesting duress or a heat-of-the-moment scenario.
If you’re unsure, it’s worth getting advice before you respond (as our client did), to help ensure things don’t go awry and you end up with some nasty consequences.
As always, reach out to us if you need help….
Note that this is general information only. It is not formal or legal advice. Information is current and we believe accurate at the time of publication – 23/06/2026.
