Quiet Quitting
During the past few months, there has been lots of talk about employees “quiet quitting” their jobs. Put simply, it refers to employees who only do the job that they’re being paid to do, without taking on any extra duties or participating in extracurriculars at work. In other words, employees who slowly give up until they are able to find a new job elsewhere. For example, it can refer to employees who log out of work exactly at 5:00 p.m., or only doing the tasks that are specifically assigned to him (that is, not volunteering to take up more work than necessary).
But what happens if an employee actually decides to quit their job. What are their legal obligations?
What is a Wrongful Resignation?
An employment contract can be terminated either by an employee or an employer at any point in time. Most people are familiar with the consequences of an employer firing an employee by falsely alleging just cause (and depriving them of prior notice of termination), which can lead to a wrongful dismissal claim against the employer and an employee’s recourse for obtaining a financial severance package. On the other hand, employees to generally have an expectation of providing an employer with prior notice when they decide to resign – but far less is commonly known about the consequences when they do not.
In Ontario employment law, there is generally no specific legal “notice of resignation” employees must provide their employers before they quit. Unlike an employer’s requirement to provide minimum notice of termination (or termination pay) under the Ontario Employment Standards Act, 2000, or common law reasonable notice of termination, the amount of resignation notice an employee must give to an employer must be defined in an employment contract (this is usually found in a termination clause). For instance, an employee’s employment contract could require the employee notify the employer at least 4 weeks before their last day of work (when their resignation will take effect).
When determining how much prior notice of resignation an employee should provide to an employer, the courts typically consider an employee’s position, duties and responsibilities, salary, length of service, and the time it would generally take for the employer to find a qualified replacement for the employee’s position.
What happens if an employee fails to provide an employer with proper notice of resignation?
If an employee has agreed to provide an employer with a specific resignation period but quits their job immediately (or without providing the required notice of resignation), an employer can sue them for wrongful resignation. Similarly, even if an employee has not agreed to a specific notice of resignation in an employment contract, they may have a fiduciary obligation to provide “reasonable notice” of resignation (although this is reserved for high-ranking employees, and generally not a manager or supervisor).
Consequences for Employees Who Provide Less Notice of Resignation
If an employee fails to provide an employer with proper notice of their resignation, the employer can sue for any damages it can prove it suffered as a result of the employee’s wrongful resignation. Wrongful resignation is basically the opposite of a wrongful dismissal (the employer and employee essentially switch roles in failing to respect their legal obligation to provide proper notice before the employment relationship ends). In other words, an employer’s lawsuit against an employee for providing inadequate notice of resignation.
For instance, an employer may be able to prove that an employee’s decision to resign “on the spot” (or by providing only a few days of notice) caused it to lose significant amounts of revenue, or had to spend significantly on recruitment fees in quickly trying to find a suitable replacement. In that case, a court could award monetary payment to the employer to compensate them for such losses.
If an employee is considering resigning, it is prudent to first discuss the circumstances and proper ways to resign with an experienced employment lawyer. for instance, sometimes an employee could justify a quick resignation based on their work situation, such as if they are dealing with a toxic work environment, or if their employer has chosen to unilaterally change a fundamental part of their job (e.g., a demotion). In fact, in many of those cases, our employment lawyer at Bune Law has help employees navigate an amicable departure based on a valid claim of constructive dismissal and allowed an employee to obtain fair severance pay compensation.
How Employers Prove a Wrongful Resignation
Generally, an employer suing an employee for wrongful resignation must prove that:
- The resigned their position voluntarily
- The employee did not have a valid reason (just cause) to reason so suddenly (i.e., the employee did not resign in protest as a result of a constructive dismissal, such as workplace harassment or demotion)
- The employee failed to provide the employer with reasonable notice
- The employer suffered damages as a result of the resignation without reasonable notice (e.g., business was affected and caused loss of revenue)
- The employer must make an attempt to mitigate damages by seeking a replacement for the employee (duty to mitigate)
However, it is always better for employers to take preventative measures when it comes to wrongful resignations, including requiring an employee to agree to provide a specific amount of notice of resignation to minimize disruption to its business operations. On the other hand, employees thinking of resigning should try to negotiate a fair resignation period and confirm that in a quick email to help minimize the risk of later being accused resigning without adequate notice (and being potentially responsible for paying an employer substantial compensation for wrongful resignation).
Contact Employment Lawyer Today
Whether you are an employer or an employee who needs assistance or advice on workplace issues or disputes, our experienced employment lawyer at Bune Law can help. Contact us by phone 647-822-5492 or fill out the contact form to the side. We would be happy to assist in your employment law matter as quickly as possible.
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