Legal Question in Business Law in Virginia

Re: Forced resignation vs laying off an employee

I think you have to evaluate whether their reasons for firing you are legitimate or believable. If you had to explain it to a future possible employer, would it be defensible.

For example, if you can show that the company has financial challenges, then whatever the company says it seems clear that you were "laid off" -- that is it had nothing to do with you, but with the company's inability to keep paying you.

If they would report that you were caught stealing the boss' wallet or something bad, then you have to consider that.

Most companies do not tell future companies anything because these days they don't want to get sued and just don't want to get involved.

If you resign, you cannot get unemployment compensation, at least as I remember it. You can check with that office fairly easily, but I am pretty sure of that.

However, if you are fired because of something you did seriously wrong, they might be able to challenge you in the unemployment system, saying it was your fault. So it could come out anyway.

I am not 100% sure on that point, because I have seen that happen in other States, and I assume it is true also in Virginia, but I am not certain.

The biggest risk I have seen though is when an employee resigns and SIGNS SOMETHING that they want you to sign.

This is a very, very bad habit of employers.

If you have been working under a contract or just at will, they cannot redefine the relationship AT THE END. They try to add resrictions or conditions at the END of the relationship, which changes the relationship that you previously had. They can't do that.

The only way they can get any new restrictions or promises from you is if they PAY YOU something NEW that they did not owe you already.

So be very suspicious of signing anything as you leave. They cannot redefine the employment relationship after the fact. They cannot impose any restrictions or new promises from you.

If they did not think to put it in a contract up front, it is too late now.