Is Resigning in Lieu of Firing the Same as Quitting Your Job?

Employment References

When you apply for a new job, your prospective employer will typically contact your previous employer to verify your eligibility for rehire. Your previous employer's human resources staff cannot tell a prospective employer whether you resigned or were terminated. He can, however, tell the new employer whether you are eligible for rehire. Termination typically makes you ineligible for rehire, while simply quitting your job does not, as long as you gave your employer sufficient notice. Whether resignation in lieu of termination makes you eligible for rehire is up to your previous employer.

Unemployment Eligibility

In most states, any type of resignation, regardless of whether you resigned to avoid being fired, makes you ineligible for unemployment compensation, preventing you from obtaining financial benefits that can help you make ends meet until you find new employment. Eligibility for unemployment benefits typically hinges on whether you caused your separation from your employer. In some states, however, you may be eligible for unemployment compensation if your resigned because the employer refused to provide safe working conditions or meet ethical standards.

COBRA Continuation Coverage

Voluntarily separating from your employer typically allows you to retain eligibility for COBRA continuation benefits, which extend the same healthcare coverages as when you worked for your employer in exchange for full payment of premiums under your healthcare plan. Eligibility for COBRA continuation benefits does not hinge on the reason you quit your job. Conversely, you may be ineligible for COBRA continuation coverage after being fired if your employer can show that the termination was a result of gross misconduct.

Considerations

Quitting your job, regardless of whether you choose to leave to avoid being fired or for another reason, may allow you to pursue alternative employment with greater confidence than if you were fired. It allows you to avoid having to disclose a discharge on employment applications and may prevent uncomfortable discussions when participating in interviews with hiring managers. It can also eliminate the stigma associated with telling friends, family members and former associates that you were terminated.