Resigning while your role is at risk can feel like a positive way to take control, particularly when another opportunity appears or the redundancy process has become difficult. It can also affect redundancy pay, notice arrangements and other contractual rights. The correct decision depends on the individual documents and circumstances.
The career decision matters just as much. Leaving quickly for an unsuitable role can replace one difficult transition with another. Before choosing either route, the legal and financial position should be clarified and the next move should be assessed on its own merits.
Do not resign because a general article appears to support it. Acas warns that resigning after being told a job is at risk or will become redundant might result in losing entitlement to redundancy pay. Speak to the employer and obtain individual legal advice before acting.
What is the difference between resigning and taking redundancy?
Resignation is the employee’s decision to end the employment contract. Redundancy is a dismissal arising because the employer’s requirement for the role has reduced or ended. That distinction can affect the termination reason, notice, redundancy payment and other terms.
The words used in informal conversations are not enough. The contract, consultation documents, redundancy notice, proposed payment breakdown and any settlement agreement determine the position. If the employer is willing to agree an earlier departure, the effect on each payment and the recorded reason for leaving should be confirmed in writing.
This article provides career information, not legal or financial advice. Check the current Acas guidance on resignation and GOV.UK redundancy notice guidance, then obtain advice on your own documents before making a decision.
The decision has two separate but connected parts
Protect the current position
Understand what is confirmed, what may be lost by resigning, which payments or benefits apply and what must be agreed in writing. This requires legal, contractual and sometimes financial advice.
Plan the next career move
Decide whether the new opportunity or search direction is strong enough, whether the timing is realistic and how your experience will be positioned for the next employer.
Confusing these two questions can lead to a poor decision. A generous package does not automatically make waiting the best career choice. Equally, the emotional relief of leaving does not make a new position suitable or sufficiently secure.
Why resigning early can create avoidable risk
A verbal indication of a job is not the same as an unconditional written offer. References, screening, regulatory approval, budget or another internal decision may still be outstanding. If the individual resigns before those conditions are satisfied, they may give up both the current employment and some redundancy-related entitlements while the new role remains uncertain.
Notice pay, holiday, bonus, commission, benefits, share arrangements and restrictive terms may also be affected. The consequences depend on the contract and the proposed exit. An employment lawyer or other qualified adviser should explain those consequences; a career consultant should not attempt to replace that advice.
Why waiting for redundancy can also carry a career cost
A prospective employer may need somebody sooner than the proposed redundancy date. A valuable opportunity may not remain available indefinitely, and a prolonged period of uncertainty can delay preparation for the market. The decision should therefore consider more than the immediate redundancy payment.
The quality of the next role matters. Scope, culture, leadership, stability, salary, flexibility and future options should all be considered. Moving quickly into a poor fit can result in another career transition, while rejecting a strong opportunity without exploring an agreed release may be unnecessarily cautious.
Assessing a new opportunity before leaving
Redundancy can make any offer feel reassuring. That makes independent scrutiny particularly valuable. The role should be assessed against the individual’s career direction, not only against the discomfort of the current situation.
A career consultant can help test whether the position uses the person’s strongest capabilities, whether the level and expectations are appropriate and how it affects longer-term options. The consultant can also help the individual prepare for discussions about start date, motivation and why the move makes sense.
This is not a substitute for checking the legal status and conditions of the offer. It is a way of ensuring that the career case for leaving is as well considered as the financial one.
Is the next move strong enough to justify the decision?
London Outplacement can help you evaluate your career direction and prepare your professional positioning while legal advisers address the contractual consequences.
If you do not yet have another role
Resigning simply to escape uncertainty can increase financial pressure and may affect redundancy entitlements. It can also start the job search before the individual’s direction, CV, LinkedIn profile and market strategy are ready.
This is where outplacement support can add value before employment ends. A consultant can help identify suitable target roles, establish the achievements and capabilities that should lead the story, professionally develop the CV and LinkedIn profile and begin a focused approach to recruiters, employers and relevant contacts.
Early preparation does not commit the individual to resigning or waiting. It improves readiness whichever route is ultimately chosen.
Can you negotiate an earlier leaving date?
Sometimes an employer and employee can agree an earlier departure. Whether redundancy pay, notice pay and other terms are preserved depends on the arrangement. Do not rely on an informal assurance; the termination date, reason for leaving and payments should be documented before commitments are made to a new employer.
Where formal redundancy notice has already been given, specific rules can apply to leaving early for another job. The timing and response from the employer matter. Use the official guidance and obtain advice rather than assuming that ordinary resignation rules produce the intended result.
Settlement agreements and outplacement support
A settlement agreement may cover termination payments, claims, confidentiality, announcements, references and other terms. Acas explains that a settlement agreement is voluntary and must meet legal conditions, including advice from a relevant independent adviser, to be legally valid.
Outplacement has a different purpose. It supports the career transition after or alongside the agreement. Some employers already provide it; in other cases an employee may ask whether support can be included in redundancy or settlement discussions. There is no automatic entitlement, but the request may be valuable because it provides practical help with returning to work.
Separate the advisers: use an appropriately qualified independent adviser for the settlement agreement and legal rights. Use a career consultant to clarify direction, develop professional materials, prepare for recruitment and manage the next move. See the current Acas settlement-agreement guidance.
How London Outplacement can help before the decision is complete
It is not necessary to wait until the final working day to prepare for the market. Depending on the programme, London Outplacement can help with:
- clarifying career aspirations and realistic target roles;
- evaluating the career fit of a potential new opportunity;
- identifying capabilities, achievements and professional value;
- professionally developing the CV and LinkedIn profile;
- preparing for recruiter and employer conversations;
- building a focused strategy for relevant organisations and opportunities; and
- providing ongoing personal support as the employment position and search develop.
The objective is not to tell the client whether to resign. It is to ensure that the career implications are understood, the next move is deliberate and the individual is professionally prepared to enter the market.
The value of support compared with making the decision alone
Employment documents can explain what will happen under each contractual route, but they do not determine which career direction is best. Friends and colleagues may be supportive, but their advice is often shaped by their own tolerance for risk or experience of redundancy.
A professional adviser brings an external perspective. Legal advice protects rights; financial advice helps assess affordability and longer-term consequences; career consulting improves the quality of the next-move decision and the way the individual approaches the market. Significant decisions may require all three.
You can compare our outplacement programmes and prices, read about outplacement alongside a settlement agreement, see our guide to choosing or requesting outplacement support, or read about finding a job after redundancy.
Frequently asked questions
Can I resign while I am at risk of redundancy?
You can resign, but doing so may affect redundancy pay and other rights. The stage of the process, wording of the documents and any agreement with the employer matter. Obtain individual advice before acting.
Is voluntary redundancy the same as resigning?
No. Voluntary redundancy is generally still a dismissal by reason of redundancy when the employer accepts the application. Resignation is the employee ending the employment contract. The written documentation should make the position clear.
Can I start a new job during my redundancy notice period?
Your current employment continues until it ends or an alternative arrangement is agreed. Starting elsewhere may have contractual and redundancy-payment consequences. Check the documents and obtain advice before confirming a start date.
Should I wait for the redundancy payment if I have a good offer?
There is no general answer. Compare the certainty and career value of the offer with the payments and rights that may be affected. Explore whether an agreed departure is possible and obtain legal and financial advice where appropriate.
Can my employer pay for outplacement support?
Some employers provide outplacement as part of redundancy support. Others may consider a request during consultation or settlement discussions. Availability and funding depend on the employer and the individual circumstances.
Plan the career side of your decision
Once you are obtaining the appropriate legal and financial advice, London Outplacement can help you clarify the next move, professionally develop your CV and LinkedIn profile and approach the market with a focused strategy.
