1. What Are Resignation Letters Sometimes Referred to As?
2. What Does a Resignation Letter Include?
3. What Is a Contract Breach?

Updated November 12, 2020:

A resignation agreement contact is very important in the event you find yourself wanting to leave your job. It is a short letter that gives notice to your employer that you will be terminating your employment. While the majority of companies do not require a letter of resignation, experts suggest that a letter of resignation is the appropriate course of action and demonstrates courtesy and professionalism.

What Are Resignation Letters Sometimes Referred to As?

  • Notice of resignation.
  • Notice letter.
  • Resignation notice.
  • Two-week notice letter.

Regardless of the term, most letters will include your name, the last day you will work, and any other terms of your resignation.

An employment contract may specify that an employee is obligated to provide a resignation letter as a formal notice if they plan to leave the company. The request is most often placed within a contract to provide the employer with a written record of the employee's acceptance in leaving the company and will help in defining benefits. Resignation contracts usually use legal wording for contracts.

Most employers request at least a two-week notice; however, employee contracts will vary from employer to employer. It is always suggested to read your employment contract to understand the obligations and procedures you must follow when terminating employment. Beware that a verbal notice is not the same as a written notice; failing to follow the terms of the contract could constitute a breach of contract.

As previously mentioned, experts suggest a letter of resignation be provided regardless because it is courteous and professional. A notice allows the employer and co-workers to prepare for your departure and make arrangements to replace your current position.

What Does a Resignation Letter Include?

Most resignation letters are not lengthy in detail. A typical letter will state the facts and the resignation date. The resignation date is not the last day you will work; it's the date you hand your employer the letter.

The letter should also provide your contact information, the company's information, and the date of your expected last day to work. When stating the reason for leaving, keep it brief and simple. For example, you may say you are pursuing other opportunities. The letter should end with an appropriate closing salutation, followed by your name.

Employers should respond with an employee resignation agreement upon accepting a resignation. The agreement serves as a reminder of tax responsibilities and any nondisclosure and non-distribution agreements as set forth in the original contract.

What Is a Contract Breach?

A contract breach occurs when a party fails to perform an obligation that was specified in the contract. Once it is determined that a breach did occur, the contract becomes void. For example, a contract that has a confidentiality clause will become void if either party breaches the confidentiality clause.

A contract is considered void if there is a lack of free consent, as well. This means all parties must agree to the terms of a contract or agreement free from any fraud or pressure, or it will not be considered legally binding. As with a material breach, the contract will be void.

For example, an employee contributes time, ideas, and money to the production of a new product. An agreement states he will give up any rights to the product and receive a specified sum of money. If the employee refuses and is then told that his name will be ruined due to rumors, the contract would be void even he signs it because he was being coerced.

When a contract of adhesion occurs, this means the stronger party in the contract used some type of coercing to cause a disadvantage to the weaker party. This commonly happens when stronger parties offer some type of agreement or contract to the weaker parties and give them no option but to sign. There is typically no room for any type of negotiation. If this were to take place, then the contract would be void, and the signing party would not be held to the contract in any type of legally binding manner.

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