The digital age has introduced us to countless workplace trends—some transformative, others deeply concerning. One such phenomenon gaining traction in Japan is resignation by proxy—a practice where employees outsource their resignation process to agencies. A glaring sign of leadership failure? 

Let’s find out.

In Japan, where corporate loyalty is deeply ingrained, quitting a job can be an emotionally charged and stressful ordeal. To navigate this challenge, employees are turning to resignation agencies, known as “taishoku daiko.” These agencies, which first emerged around 2017, handle resignations on behalf of employees—delivering notices to employers, retrieving necessary documents, and facilitating the transition process.

In short, employees feel so pressured, intimidated, or emotionally drained that they are unable to resign on their own. This impacts mental health, work-life balance, and, of course, employer’s brand.

The increasing reliance on resignation agencies points to deeper issues within the workplace. Here are some key factors contributing to the rise of resignation by proxy:

• Toxic Work Environments – Many employees endure workplace bullying, excessive workloads, and unfair treatment. When resigning means facing additional pressure or retaliation, external help becomes a necessity rather than a luxury.

• Strict Hierarchies – Traditional Japanese companies operate on deeply rooted hierarchical structures where employees are expected to demonstrate unwavering respect for their superiors. Quitting is often seen as an act of betrayal, met with guilt-tripping or outright hostility.

• Changing Workforce Attitudes – Millennials and Gen Z workers are redefining workplace expectations. Unlike older generations, they prioritize mental well-being and work-life balance over blind loyalty. However, in rigid corporate settings, resignation remains a daunting task—leading them to seek third-party assistance.

• Growing Mental Health Awareness – The rise of mental health advocacy has encouraged employees to recognize their rights and take action against toxic work environments. Resignation agencies serve as a coping mechanism for those who feel trapped.

Where Did Leadership Go Wrong?

While resignation by proxy may seem like an innovative solution, it ultimately reflects a failure of leadership. A well-run organization should foster a culture where employees feel safe and empowered to make career decisions without fear or emotional distress. The rise of resignation agencies signals that many workplaces are failing to provide:

• A Safe and Open Workplace – Employees should never feel so intimidated by their superiors that they need a third party to speak for them. A culture of fear and control only makes resignations an act of defiance rather than a personal career choice.

• Proactive Solutions for Workplace Toxicity – If employees feel compelled to hire someone to quit on their behalf, leadership has ignored deep-seated issues. Bullying, overwork, and exploitative practices must be tackled at an organizational level.

• Adaptability to Workforce Expectations – Leadership must recognize and adapt to evolving workforce values. Employees today prioritize flexibility, well-being, and job satisfaction. Companies that fail to accommodate these needs will continue to see their talent seek alternative exit strategies.

• Respect for Employee Autonomy – A strong workplace culture should encourage employees to take ownership of their careers—including their departure. If employees feel powerless to resign on their own, it’s a clear sign that leadership has created an oppressive environment.

Could resignation by proxy spread to ANZ workplaces?

While Japan’s corporate culture is uniquely rigid, could resignation agencies emerge in regions like Australia and New Zealand (ANZ)?

ANZ workplaces have already seen major shifts in employee expectations, particularly with policies like the Right to Disconnect, which empowers employees to set boundaries between work and personal life. However, workplace stress, burnout, and toxic cultures still exist in many organizations.

If leaders fail to address these challenges, could resignation agencies become the next big workplace trend in ANZ?The key to preventing this lies in proactive leadership and employee-centric policies.

Instead of waiting for resignation by proxy to become a widespread issue, business leaders should take proactive steps to ensure their organizations foster healthy, open, and supportive workplaces where employees feel confident making career decisions.

1. Encourage Transparent Conversations – Employers should create an open environment where employees feel safe expressing concerns and career aspirations. Regular one-on-one meetings and anonymous feedback channels can help address issues before they escalate.

2. Improve Exit Processes – Resignation should not be a traumatic experience. Companies should implement clear, respectful, and non-confrontational resignation procedures that allow employees to leave on good terms.

3. Address Workplace Toxicity – Instead of forcing employees into silence, leaders must actively combat toxic behavior, implement anti-bullying policies, and ensure employees are treated with respect.

4. Prioritize Employee Well-being – Mental health programs, flexible work arrangements, and a strong work-life balance should be integral parts of company culture. Employees who feel valued and respected are less likely to seek extreme measures to leave.

5. Reframe Resignation as a Natural Career Step – Leadership must recognize that resignations are a normal part of career progression. Demonizing employees who leave only damages employer branding and workplace morale.

Resignation should be a personal choice, not a confrontation to be outsourced. The rise of resignation agencies serves as a stark reminder that workplaces must evolve before employees feel forced to seek third-party solutions.

The future of workplace leadership will depend on the ability to adapt, listen, and evolve—before resignation by proxy becomes a global norm.