She never said she quit - but the Commission found she resigned

A recent ruling from the Fair Work Commission highlights the legal risks when employees transition during a business sale. In this case, an administrative worker at a Western Australian mine maintenance firm began preparing for a new role with a buyer before the deal was finalized. She moved out of company housing and finished her shifts early, operating under the assumption that her transfer was secure. When the asset sale collapsed, she found herself without a position and filed a claim arguing she had been dismissed by her original employer.

The Commission examined the documentation to determine if the worker had actually been dismissed or if she had resigned through her own actions. While the employee never submitted a formal resignation letter, the Commission looked at the trail of emails and text messages exchanged between the parties. These communications showed that the worker had already accepted an offer from the buyer and was actively relocating, signaling a clear departure from her current role.

Legal precedent confirms that the assessment of whether a resignation occurred depends on how a reasonable person would interpret the behavior of the parties involved. The Commission concluded that the worker had effectively resigned by her conduct before the business sale concluded. Because she acted prematurely without a signed contract or a confirmed sale completion, the Commission determined the employer had not initiated the termination.

This decision serves as a reminder for management teams regarding transition periods during corporate restructuring. Employees often wind down their duties before a deal is officially finished, creating significant ambiguity regarding employment status. The Commission’s ruling clarifies that in the absence of an explicit resignation, the paper trail serves as the primary evidence. Documenting all transition terms in writing is necessary to prevent disputes if a deal falls through.

The application was dismissed because the worker could not prove she had been dismissed, as her own conduct established that she had resigned from the employer. For HR departments, this underscores the importance of managing expectations during M&A activity. Clear communication about the risks of acting on pending offers before final completion protects both the organization and the legal standing of the workforce during complex handovers.