Told to resign or be fired?
Your employer gave you an ultimatum and you have not decided what to do.
What are your rights when told to resign or be fired?
You do not have to treat this as a free choice, because in law it often is not one. A resignation given under a direct threat of dismissal can still be treated as a dismissal, depending on how the pressure was applied.
The contract test from constructive dismissal cases applies: did the employer’s conduct show an intention no longer to be bound by the contract on its original terms?1 An ultimatum given suddenly, without warning or process, points more toward that than a considered management decision.
Why does the exact moment matter?
What was said, by whom and in what tone becomes key evidence later. Write it down straight afterwards, while the wording is fresh.
Whether you resign or are dismissed, the same 60-day window applies to lodge a written representation with the Director General of Industrial Relations.2 That deadline does not wait for you to decide which option felt better in the moment.
What should you do right now?
Ask for a short pause, such as until the end of the day, instead of answering under pressure in the room. Ask for the situation to be put in writing before you decide anything.
An employer who pushes for an instant answer, with no room for a pause, is itself a detail worth noting.
Read about whether resigning before claiming changes your position. If you have already resigned, a resignation letter that reflects what actually happened can support your case later.
Who can act on this for you?
If you want a lawyer to challenge the ultimatum, send the wording and the date to an employment lawyer. The exact words used affect how an independent lawyer would act on your case.
If you have been given a resign or be fired ultimatum, send the wording and the date. An independent employment lawyer can review it and tell you how they would act on it.
For people seeking legal representation. For general information, please use our guides and tools.
First contact: general facts only, such as date, location, employment status and a short summary. Keep documents private until an identified independent lawyer contacts you and specifically requests them.
Common questions
If I resign under this pressure, do I lose my claim?
Not necessarily. A resignation given under a direct threat of dismissal can still be treated as a dismissal, because it was not a free choice. The circumstances around the ultimatum matter a great deal.
What if I refuse to resign and they fire me instead?
You still have the same 60 days to act, and a direct dismissal can be a clearer path than a disputed resignation. Keep the same careful records either way.
Should I ask for the ultimatum in writing?
Yes, where you can. A calm email asking them to confirm the situation gives you a record that is far more useful than a spoken exchange nobody else heard.
Is it worth negotiating a mutual separation instead?
Sometimes. Read any offer slowly and understand what you would give up. A mutual separation is not better or worse by default; it depends on the terms.
Sources
- The contract test from Wong Chee Hong v Cathay Organisation (M) Sdn Bhd asks whether the employer's conduct breaches the contract at its root or shows an intention no longer to be bound. Thomas Philip
- A worker has 60 days from the dismissal date to lodge a written representation with the Director General of Industrial Relations. Mah Weng Kwai & Associates
Keep reading
If you have been given a resign or be fired ultimatum, send the wording and the date. An independent employment lawyer can review it and tell you how they would act on it.
For people seeking legal representation. For general information, please use our guides and tools.
First contact: general facts only, such as date, location, employment status and a short summary. Keep documents private until an identified independent lawyer contacts you and specifically requests them.