Withdrawing a resignation: Can you say NO?

There’s nothing like receiving a resignation to stir up mixed emotions. But what happens when the employee changes their mind? In the not-for-profit (NFP), aged care, and disability services sectors, where staffing is already under pressure, withdrawing a resignation can present a complicated decision.

We are often asked, can you say NO when an employee changes their mind on a resignation?

Quick Answer: Yes you can. 

Considered Answer: Yes you can, but it’s a good idea to look at all the circumstances. 

Some resignations leaders are sad to receive. 

• Their favourite employee resigning

• Their much trusted business analyst who is a wizard on excel

• The office manager who brings so much joy and fun to the workplace

Others, we are quietly happy to receive.  The ones from employees with performance concerns, poor attitudes and those who are quite frankly detracting from the workplace.  So, what happens when those employees decide to rescind their resignation. They change their minds. 

Does the organisation have to go along with this change of heart? 

In this guide, we explore what Australian employment law says, what risks employers need to weigh up, and how to manage resignation retractions with confidence and compassion, especially in care-centred environments.

What Does Withdrawing a Resignation Mean?

Put simply, a resignation withdrawal is when an employee who has formally resigned later decides they want to stay. Whether that’s welcome news, or not, depends on the employee, their reasons, and the organisation’s current situation.

Legally, once a resignation is accepted by the employer, it's typically considered final. However, the Fair Work Act 2009 doesn’t explicitly prohibit employers from allowing a retraction. This gives you flexibility, but also leaves you navigating some grey areas, especially when the request comes late in the process or from a challenging employee.

Fair Work Australia's Perspective on Resignation Retraction

Under Australian law, specifically in relation to the Fair Work Act 2009, resignation is considered a voluntary termination of employment. When an employee resigns, they are generally indicating their intent to end their employment with the organisation. 

However, unlike dismissal or redundancy, which are governed by specific legal frameworks, resignation is a unilateral decision made solely by the employee. As such, Fair Work Australia (FWA) does not directly legislate on resignation retractions, leaving employers with some flexibility in handling these cases; and unfortunately, also some ambiguity on the outcomes of this. 

There is no formal legal requirement to accept a retraction, however, Fair Work Australia does suggest that organisations should consider both fairness and the circumstances in which the resignation retraction is requested. 

You should consider whether the resignation was given under duress or influenced by unreasonable pressure; in such circumstances, the employer might have a legal obligation to discuss the potential retraction. 

Key questions include:

• Has the resignation been formally accepted in writing?

• Has the notice period commenced or been worked?

• What impact would a retraction have on team planning or existing offers made?

Why It Matters in the NFP, Aged Care, and Disability Sector

Withdrawing a resignation may sound like a simple backtrack, but the implications in NFP and care organisations can be significant:

• Team dynamics matter. If a ‘bad apple’ employee is allowed back, others may feel undermined.

• Service continuity is critical. For clients who rely on familiar support workers, consistency is essential.

• Resources are tight. Recruitment, onboarding, and workforce planning already demand significant time and funding.

• Recruitment cycles are long. Filling frontline and specialised roles can take weeks or months.

• Trust and continuity matter. Clients build rapport with care staff—disruption can affect outcomes.

• Workplace culture is fragile. Flip-flopping decisions can cause confusion or undermine leadership authority.

According to the Aged & Community Care Providers Association, nearly 65% of aged care providers cite workforce shortages as a top concern, highlighting how even a single staff departure can cause ripple effects.

Key Risks to Consider Before Accepting a Retraction

While it may seem like a goodwill gesture to allow an employee to retract their resignation, organisations must carefully weigh the risks involved in this decision. Below are some of the key risks:

Operational Disruption

You may have already initiated recruitment or restructuring. Backflipping can waste time and resources.

If an organisation accepts a retraction, it could disrupt internal planning and scheduling. For instance, other employees may have been recruited to fill the role, or restructuring plans may have been made based on the assumption that the employee would be leaving.

Employee Morale

Letting someone ‘undo’ their resignation can send a confusing message, especially if their performance or attitude were already in question.

If the retraction is granted, it could send the wrong message to other employees. This is particularly relevant for poor performing employees or employees who are considered the ‘bad apple’ in an otherwise healthy fruit bowl.  It may create confusion about the stability of job security, especially if the retraction is seen as a 'temporary solution' to an employee's dissatisfaction. It might also lead to other employees questioning whether they could walk away and return without consequences.

Trust and Commitment Issues

Once someone’s mentally ‘checked out’, it’s hard to restore the same level of trust. Rescinding may only be a short-term fix.

When an employee resigns and later retracts their resignation, it can impact the trust and commitment that both the employee and the organisation have in each other. Leaders often conclude that the employee isn’t going to stick around, and this causes distrust within the leader/employee dynamic. There may be lingering doubts about the employee’s loyalty and dedication which also impact the relationship. 

Legal Risks

While Fair Work doesn’t mandate retraction acceptance, rejecting it without a process can still create risk, especially if the original resignation was made under stress.

With no specific rules around how resignation retractions should be handled, organisations must be cautious about potential discrimination or unfair treatment claims. If an employee retracts their resignation and the organisation refuses to accept it without a valid reason, the employee may claim that the refusal was unjust or discriminatory.

Wasted or Exhausted Resources

Interviewing, hiring, onboarding, these cost time and money. Reabsorbing a vacillating team member could mean starting from scratch again later.

Many of us know the challenges and the time and resources invested in the recruitment process for a replacement, as well as training or preparing for the employee’s departure. All of this energy and effort could go to waste. If an employee returns after retracting their resignation, these costs are essentially incurred twice.

Key Considerations for Employers

When faced with a request to withdraw a resignation, consider the following:

• Was the resignation given under stress or pressure? 

  • If so, reassess the legitimacy of the resignation.

• Has it already been accepted in writing? 

  • If yes, you're under no legal obligation to allow withdrawal, but it may still be beneficial.

• Have replacement steps been initiated? 

  • Consider impact on recruitment costs and team planning.

• What’s the bigger picture? 

  • Weigh up how this decision aligns with your culture, values, and operational goals.

Best Practice Tips:

• Document all resignation and withdrawal communications.

• Revisit position requirements and workforce plans before making a decision.

• Be consistent with your approach across employees to avoid future claims of unfair treatment.

  
  

When Should You Accept a Resignation Retraction?

That said, there are valid reasons to allow a resignation withdrawal:

• The resignation was given under emotional strain (e.g., family crisis, illness)

• The employee is genuinely remorseful and committed to staying

• No operational changes have been made to accommodate their departure

• They hold a critical or specialist role that would be difficult to replace

• Their resignation was sparked by a solvable issue (e.g., unresolved conflict)

In these cases, retraction can provide a second chance, for both parties. But only if expectations are reset and the return is actively managed, and while there are clear risks, there are certain occasions where accepting a resignation retraction may benefit everyone and even improve morale. Let’s go into more detail:

Genuine Change of Heart

If the employee expresses a genuine desire to remain in their role after resigning, and their decision was made hastily due to personal pressures (e.g., health issues or family problems), accepting the retraction may be reasonable. However, this should be done only after assessing whether the employee is truly committed to staying.

Employee Retention

If the employee is a key player within the organisation and is highly skilled or difficult to replace, it may be in the organisation’s best interests to try to retain them. This could be especially true for employees in senior or highly specialised positions where a replacement would take significant time and resources to find and train.

Mutual Understanding

If the resignation was submitted in a moment of frustration or emotional distress, and the employee reconsiders once they have had time to reflect, it may be worth allowing them to retract. In these cases, mutual understanding and a frank discussion about expectations going forward will be crucial.

No Adverse Impact

If the employee's decision to retract their resignation will not cause operational disruptions, such as if the organisation has not made significant changes to accommodate their departure, accepting the retraction may be simpler. It’s important to ensure that the employee’s return won’t be more disruptive than beneficial.

Constructive Conversation

If the employee’s resignation was triggered by a legitimate concern that could be addressed, such as dissatisfaction with working conditions or a specific grievance, the employer could use this opportunity to open a dialogue for improvement. In these cases, retracting the resignation might help retain an employee who could otherwise leave due to unresolved issues.

How Anson Can Help

At Anson, we support NFP and care sector organisations through workforce transitions, from recruitment and restructures to tricky situations like resignation withdrawals.

Our consultants work with your leaders to provide:

• Sound advice on risk mitigation

• Policy development to guide future cases

• Resignation and transition management advice

• Mediation services where relationships have been strained

• Guidance around communication, trust rebuilding, and HR documentation

Summary: What to Remember

• A resignation can’t always be withdrawn once accepted, but there is room for discretion.

• You are not legally obliged to accept a resignation retraction once accepted.

• Always assess the timing, context, and employee’s reasons.

• Think beyond the individual, consider the team, clients, and culture.

• If accepting, reset expectations clearly and document the agreement.

• When in doubt, seek advice. Your decision now can shape future dynamics.

FAQ

Q: Can we legally say no to a resignation withdrawal? 

A: Yes. As long as the resignation was accepted, you are not required to accept a retraction. However, Fair Work encourages fair and reasonable decision-making.

Q: What if the resignation was given in the heat of the moment? 

A: In such cases, you may need to give the employee a chance to confirm their decision. If they withdraw before formal acceptance, it’s worth considering their intent.

Q: Should we update our policies to include this scenario? 

A: Absolutely. Clear internal procedures help ensure consistency and reduce the risk of future claims or confusion.

Got a team member who’s changed their mind, or not sure whether to say yes?

Let’s chat. Our experienced consultants understand the nuance of workforce decisions in people-first environments.

👉 Book a free 30-minute consult with Anson’s HR experts today. Contact Us