What Can I Claim If I Resign From My Job?

There can be different reasons for someone to resign from their job. Through the content of this article, we aim to learn what you can claim if you resign from your job. Additionally, we will also explore the different benefits that you can claim if you become unemployed as a result of your resignation as well as the reasons that are acceptable for the authorities when it comes to considering an unemployed individual for eligibility to claim these benefits. 

What Can I Claim If I Resign From My Job?

In addition to full pay until your last working day, generally speaking, an employee can claim the following when they resign from their job:

  • Unclaimed holiday pay
  • Overtime 
  • Bonus
  • Commission
  • Redundancy payment (if applicable)

However, practically speaking, the claims that an employee can make while resigning from their job depends entirely on the circumstances under which an employee resigns and the terms agreed to in their employment contract.

Employees are usually expected to give a two-week notice when they resign from their job and continue to fulfil their duties during this time. If you resign from your job and refuse to fulfil your duties during your notice period or refuse to serve a notice period by resigning on an immediate basis without good reasons, you may not be able to make any claims from your employer. 

If you have been asked to resign from your job by your employer, the reasons for this resignation will determine whether or not you are able to make any claims. If the resignation is due to the fact that your employer does not wish to terminate you (as it may affect your employment record) or you are being made redundant, you may be able to claim your dues. However, if you are being asked to resign due to an incident of misconduct or fraud, you will not be in a position to make claims from your employer.

Under normal circumstances, whether your resignation is due to a personal choice or as a result of being made redundant by your employer, if you become unemployed as a result of your resignation, you can seek financial support from the state by claiming state benefits.

What Benefits Can I Claim If I Resign From My Job?

The benefits that you can claim if you resign from your job will depend on a number of factors. If you resign from your job on professional terms and are able to provide evidence for having sound reasons for leaving your workplace, you may be able to claim the following benefits:

  • New Style Jobseeker’s Allowance
  • New Style Employment and Support Allowance
  • Universal Credit
  • Pension Credit

However, there are certain conditions that will apply for each benefit to be claimed. For instance, in the case of JSA, you should be under State Pension age, unemployed or working for less than 16 hours per week. Additionally, you should have made sufficient National Insurance contributions over the recent 2 to 3 years.

In the case of New Style Employment and Support Allowance, all of the above conditions will remain applicable; additionally, the claimant must be able to provide proof of a disability or health condition that has an impact on the number of hours that they are able to work. 

In order to claim Universal Credit, you or your partner are required to be under State Pension age and have saving equal to less than £16,000.

For Pension Credit, both you and your partner should have reached State Pension age. Otherwise one of you should be claiming Housing Benefit for people above the State Pension age.

In addition to this, you may also be eligible for an income tax refund after your resignation and until you are able to find another job.

How Long Can I Claim Benefits After I Resign From My Job?

You can continue to claim benefits as long as you are unemployed and remain eligible for the claim. However, you must be able to provide evidence of the reason that you claim for your resignation. 

If you are unable to claim a “good reason” for leaving your job and it appears to the DWP that you have voluntarily become unemployed, you will possibly face a sanction on your Universal Credit payments. This means that you will be paid a reduced amount of the benefit for a period of three months before you become entitled to the original amount.

If claimants deliberately refuse a job or an increase in pay to avoid benefits reduction despite agreeing to it in their Claimants Commitment, they may be sanctioned by the DWP.

During this time, the DWP will offer you a “hardship payment” to cover your reduced income. However, should you accept this, you will then face reduced Universal Credit payments in the future.

What Are Good Reasons To Resign From A Job?

Good reasons for leaving your job may include (but are not necessarily limited to) any of the following:

  • constructive discharge from your workplace
  • medical reasons that hamper your output/ability to work
  • better employment at another job
  • facing domestic violence at home
  • to care for a family member

According to Citizens Advice, good reasons for leaving your job include the following:

  • taking voluntary redundancy due to reasonable circumstances
  • weren’t paid according to the National Minimum Wage 
  • did not feel safe due to the lack of health and safety standards in the working conditions 
  • did not feel safe due to fear of being bullied or harassed 
  • worked on  a zero-hour contract

One may safely assume that if any of the above situations apply in their case, they will be able to claim benefits during their unemployment and until they find another job.

Conclusion:

The above discussion highlights the employee benefits that you may be able to claim when you resign from your job such as overtime and holiday pay. However, if your employment contract states otherwise or you have not been able to fulfil the requirement set by your 

employer while resigning from your job, you may not be able to claim anything from them.

FAQs: What Can I Claim If I Resign From My Job?

What documents should I receive when I leave an employer?

When you leave an employer, you should receive a form P45 from them. This form carries details of your name, your Tax Office and reference number, as well as your tax code.

Will I get paid if I resign with immediate effect?

Yes, even if you resign with immediate effect, your employer is supposed to pay you for the days and hours that you have worked until the time of your resignation. There may be exceptions only in cases where it is categorically mentioned in the employment contract that a resignation without notice may lead to reductions in the amount due for payment to the employee.

Can you claim benefits if you quit your job?

Yes, you can claim benefits if you quit your job in the UK. When someone voluntarily resigns from their workplace, not only do they remain eligible for any previous benefits that they were claiming but may also be able to claim additional benefits including Job Seekers Allowance and Universal Credit. For this purpose, they must be able to provide evidence of sound reasons for their resignation; which may include anything from voluntary redundancy to workplace harassment.

What benefits can you get if you resigned from your job?

If you resign from your job on professional terms and are able to provide evidence for having sound reasons for leaving your workplace, you may be able to claim the following benefits:

  • New Style Jobseeker’s Allowance
  • New Style Employment and Support Allowance
  • Universal Credit
  • Pension Credit

 

Can you claim Universal Credit if you quit your job?

Yes, you can claim Universal Credit if you quit your job. You may also claim New Style Jobseeker’s Allowance, New Style Employment and Support Allowance and Pension Credit. Additionally, you can also claim an income tax refund until your find another job. However, it is not essential to be unemployed to claim Universal Credit.

 

References:

What payment am I entitled to when leaving my job? | WorkSmart: The career coach that works for everyone

Employee Benefits When You Leave Your Job.

Deciding whether to resign – Citizens Advice

Resignation at work- employment lawyers- Landau Law

Resigning from a job | nidirect

Being made redundant: finding work, claiming benefits and managing debts – GOV.UK