March 13, 2025
You know your time is coming. Your boss has been applying rules a lot more rigid than she normally does. Or worse – they’re giving you side-eye while you work. Many times, workers can see the warning signs and can tell their employment is coming to an end. Corporate America has built this myth of the noble worker who should voluntarily resign instead of suffering the shame of being fired. This myth is great for corporations, as it saves them millions of dollars every year – but you don’t have to fall for it. Make the company fire you, and while you wait, start your job search. The only one that benefits from an employee resigning or quitting is the company.
Corporations are responsible for paying unemployment insurance premiums and those premiums go up when they fire employees. This is why they created the myth of the noble resigning employee – essentially the American version of seppuku – to save the employee from the shame of being fired. But the real benefit of resigning or quitting is for the employer, who avoids increased unemployment premiums. If you are considering the difference between resignation and quitting, remember that employees that voluntarily resign or quit are not eligible for unemployment benefits.
That’s right, if you do the “noble” thing and resign or quit, you will be without income while you are searching for your next job. This is a terrible idea for most workers as around 35% of households with incomes below $50K are currently living paycheck to paycheck, according to a Bank of America study in October of 2024. However, if you are terminated without cause, you typically qualify for unemployment benefits.
Still wondering if it’s better to resign or be fired from your current employer?
Many employees struggle with the question of “resignation vs termination.” There are small exceptions to the general rule that you should let your employer fire you instead of resigning or quitting. Some industries are very small and all the workers and bosses know each other. In those small niche or heavily-community-based industries, there can be a benefit to maintaining a good relationship with your former employer, as you may need to return to their employment someday. Additionally, if you are planning on retiring at the end of this job, and can afford to do so, then you would not be eligible for unemployment anyway.
Sometimes, employers push workers into quitting rather than outright firing them. This is called a forced resignation, and it can impact whether you receive unemployment benefits. If you are pressured to resign under threats, a toxic work environment, or impossible working conditions, you may still qualify for unemployment. It’s crucial to document everything to support your case if you need to file a claim.
Remember that the first moment that you suspect your employment is in jeopardy, you should immediately start your job search. There is little downside to opening up potential new job possibilities and for the moment, the job market remains quite strong. Oftentimes, these new job searches can lead to far greater wages and a large improvement in your career trajectory. Additionally, it helps provide insurance in case your instincts are right and your employment comes to an end. Unemployment benefits require that you show that you are looking for work and it’s easier to do so if you have been searching for a while already. Lastly, starting any job frequently requires delays in pay and top benefits as many positions have probationary periods. The sooner you start looking for that next job, the sooner you can return to financial stability.
Many companies are good employers that treat their employees with the respect they deserve. Many companies are terrible employers that treat their employees like disposable trash. You need to do your homework and find out the difference between Costco and Amazon in worker satisfaction.If you have any questions about resignation vs termination, forced resignation and unemployment benefits, or other employment law topics, the Hurm Law Firm offers free consultations. Just call (216) 860-1922 to schedule your free consultation today.