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This is one of my friends situation:

He has a Teir 2 visa that expires 14.01.2021
He was eligible and applied for ILR SET LR in September 2020.
He resigned from his work on 14.12.2020

He is waiting for his ILR approval, because he resigned on 14.12.2020 and his Teir 2 visa will be expired on 14.01.2021, he will be overstay? does this affect his ILR application?

Thanks

He does not overstay as he has submitted an in-time application(ILR)
His ILR application will not be impacted due to his resignation as he has applied under the long residence route. However, he cannot commence working with other employers until his ILR is sorted.