Hlengiwe Skosana, a senior associate in the Employment Law Department at Garlicke & Bousfield, discusses the judgment of Standard Bank v Chiloane heard in the Labour Appeal Court, where the court had to determine whether a resignation “with immediate effect” could be enforced by the employee.

Previous court decisions have held that resignation is a unilateral act and comes into effect on the date stipulated by the employee. Said differently, the employer does not need to agree to the resignation and employment would terminate on the date determined by the employee. However, this case highlights that the terms of an employment contract, including the notice period for termination, are binding on both parties.