Should I resign or wait to be fired in Australia?

Almost always: don't resign. Resigning forfeits notice pay, possibly redundancy pay, and your unfair dismissal eligibility. If your employer wants you gone, make them terminate you formally. Exception: if you have a confirmed new offer and no workplace conduct issues, a clean resignation with proper notice is the right move. Pre-conditions to consider before resigning: are you on a PIP heading to dismissal, is redundancy possible, has there been bullying/harassment that could constitute constructive dismissal, is your fixed-term contract expiring under the new s333E cap?

What is constructive dismissal in Australia?

Constructive dismissal is when your employer's conduct makes continued employment intolerable, forcing you to resign — and the courts treat that resignation as a dismissal. Examples: serious bullying, unilateral pay cuts, demotion without consent, sustained harassment. To win a constructive dismissal claim you must show: (1) the employer's conduct was repudiatory or made employment intolerable, (2) you resigned in response, and (3) you didn't unreasonably delay. The 21-day FWC unfair-dismissal deadline still applies. Always document and get advice BEFORE resigning if you think this applies.

Will I lose my redundancy pay if I resign?

Yes, generally. Redundancy pay under s119 of the Fair Work Act applies when the employer terminates because the role is no longer required. If you resign, that's not a termination by the employer — so no redundancy. The major exception: if the employer engineers a sham resignation to dodge redundancy, the courts can look through it. If redundancy is genuinely on the table, wait for the formal announcement before signing anything.

How much notice do I have to give when I resign?

Check your employment contract or applicable modern award/EA — it usually specifies. Common minimums: 1 week for under 1 year service, 2 weeks for 1-3 years, 3 weeks for 3-5 years, 4 weeks for 5+ years. Your contract can require longer (up to about 3 months for senior roles). If your contract is silent, use the same notice the employer would have to give you. Failing to give proper notice means the employer can withhold up to that amount from your final pay.

Should I resign during a Performance Improvement Plan (PIP)?

Almost never. Most PIPs that end in dismissal are challengeable as unfair dismissal — the employer must show valid reason, procedural fairness, opportunity to respond, and proportionate response. Resigning forfeits the unfair-dismissal pathway. If the PIP itself is a sham (vague, impossible targets, no real opportunity to improve), the dismissal at the end is even more vulnerable to challenge. Engage with the PIP in writing, document everything, and let the employer make the next move.

Should I Resign?

Don't resign before you check what you might be giving up. Five-question decision tree walks through PIP, bullying, redundancy possibility, fixed-term, new offer, and burnout scenarios — and tells you the right call.

Last verified: 1 July 2025

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General information and estimates only — not legal, financial, or tax advice. Always verify with the Fair Work Ombudsman (13 13 94) or a qualified professional.

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