Never sign “voluntary resignation for personal reasons”; doing so forfeits your entitlements

7. Never sign “voluntary resignation for personal reasons”; doing so forfeits your entitlements

Cost: No monetary cost. The difficulty lies in resisting the pressure to sign on the spot.

In plain terms: Signing a statement that you’re resigning voluntarily for personal reasons typically means you lose both severance pay and eligibility for unemployment benefits. Voluntary resignation isn’t covered under the circumstances that entitle workers to compensation, except in cases where the employer fails to pay wages or neglects social insurance contributions. There’s no need to sign immediately — take a night to think it over.

Benefit: The Labor Contract Law specifies exactly which circumstances qualify workers for severance pay. Voluntary resignation doesn’t meet these criteria, unless the employer has committed statutory violations such as wage arrears or non-payment of social insurance. Signing a voluntary resignation form usually results in forfeiting both severance pay and unemployment benefits.

Evidence grade: B

Sources: Standing Committee of the National People's Congress (2007). Labor Contract Law of the People's Republic of China (Effective on January 1, 2008) (Article 38, Article 46). <http://www.gov.cn/gongbao/content/2007/content_711013.htm>

Notes: Employers often claim, “Sign this first to start the process; we’ll arrange compensation separately.” Make sure such promises are written into the agreement before signing; otherwise, refuse to sign. Failing to sign on the same day carries no legal consequences — take time to decide calmly.