If I was laid off last week due to financial troubles, however today I was asked to submit a letter of resignation, should I?

UPDATED: Apr 17, 2019

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If I was laid off last week due to financial troubles, however today I was asked to submit a letter of resignation, should I?

The organization, a non-profit, has a cash flow problem. The organization assumed debt through a line of credit. This was done so with the knowledge of the executive committee. The staff was let go because the organization didn’t have the enough funds coming in. Meetings were held with out being invited, other staff were brought in for a meeting but I was not. Then, 6 days later, I received an email from the board president requesting a letter of resignation, citing mismanagement of finances. The organization is 80% grant funded, an unsustainable business model. In my tenure with the organization, the staff brought in 1.1 million in grants. We were always one missed grant away from catastrophe.

Asked on April 17, 2019 under Employment Labor Law, Wisconsin


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

Whether you should or should not is a decision you have to make: do you feel it looks better for you to resign or to be let go, in terms of your resume and looking for another position. We cannot advise you as to that, but you may wish to consult with a recruiter or career coach.
The above said, if they are accuring you of mismanaging finances, you may wish to not resign, since resigning in response to an allegation of mismanagement could be taken as your agreement with that allegation. They could, for example, tell others (e.g. if a prospective employer calls them for a reference)  that you resigned after you were accused of mismanagement--since that would be a truthful statement, they could make it.
We can let you know that you may absolutely refuse to submit a letter of resignation if you like: resignations are voluntary. So if you decide that resigning under these circumstances is not in your interest, you do not have to.

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