Many employees face this tricky dilemma: you accept a job offer, but shortly after, another company offers a position with better pay, benefits, or career growth. Naturally, you wonder: Am I legally obligated to take the first job I accepted? And what are the potential consequences of backing out?
If you find yourself in this situation, it is important to understand both your legal obligations and best practices to maintain your professional reputation. Consulting a Toronto employment lawyer or an employment contract lawyer can provide tailored guidance for your specific circumstances. In fact, as an Ontario employment lawyer, we have encountered this situation with many clients, which often involves us for an employment contract review to guide employee’s on their legal rights and responsibilities, as well as practical solutions.
Is an Employee Legally Bound to a Job Offer I Already Accepted?
When an employee in Ontario says “yes” to a job offer, they are essentially entering a binding legal employment contract. That means they have responsibilities under both their employment contract. While the Ontario Employment Standards Act, 2000 does not have a minimum requirement for employees to provide notice of resignation, it is typically prudent for employees to do so as an industry practice.
As such, here is what en employees generally need to know:
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Notice Periods: Many employment contracts require employees to give notice before leaving. Even if an wants to start the new job immediately, offering to work their notice period under an agreed-upon employment contract is a professional courtesy. It shows goodwill and can prevent potential tension.
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Financial Obligations: If the employer covered relocation costs or other expenses, an employee may be expected to repay them.
Withdrawing from a Job Offer Gracefully
Even if an employee is allowed to leave their recently started (or about to start) job, an employee may be able to handle it appropriate to minimize risk of an employee dispute and protect their reputation. Among other things, employees will typically:
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Act Quickly
It is important for employees not to delay once their mind is made up and arrangements have been put in place. For instance, employees will typically (after speaking with a qualified employment lawyer to get actual legal advice on their own case to protect their rights and interests), inform the first company know as soon as possible if you decide to take the new offer. -
Be Honest, But Tactful
An employee does not necessary need to provide all the details. For instance, an employee may be able to legitimately explain that another role aligns better with their long-term goals and keep tone polite and professional. -
Offer to Help During the Transition
If feasible, offer to assist with wrapping up any immediate responsibilities or training a replacement. Even if the company declines, it is a gesture that shows respect, courtesy, and professionalism – and sometimes goes a long way in finding an amicable resolution. -
Review any Signed Employment Contract
Employees should always check their employment contract for clauses about notice of resignation, repayment of any signing bonuses, training or educational allowance, or other obligations. If an employee is unsure, a Toronto employment lawyer can help ensure they are protected.
When to Seek Legal Guidance
Some situations are more complex and may require advice from a wrongful dismissal lawyer or employment contract lawyer:
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Significant Bonuses or Relocation Costs: If the company invested a lot to hire an employee, there could be financial implications (including signing bonuses).
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Unionized Workplaces: Collective bargaining agreements often have strict rules about resignations, which only a qualified labour lawyer may be able to assist with.
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High-Level Positions: Executive or specialized roles may have stricter contractual obligations in an employment contract.
A lawyer can help you understand your responsibilities, minimize risk, and handle communications professionally.
Can an Employee Be Sued for Leaving Early?
While it is possible for a company to claim “wrongful resignation,” this is extremely uncommon. Most employers consider the cost of legal action too high compared to what they might recover.
Still, it is always wise to get professional advice from a Toronto employment lawyer in these situations, especially if your employment contract includes repayment of relocation or signing bonuses.
Key Takeaways
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Accepting a job does create a legal relationship, but proper guidance with an experienced Toronto employment lawyer may allow employees to leave without major legal consequences.
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Always communicate promptly and professionally to avoid damaging relationships.
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Review your employment contract carefully, particularly for notice requirements and repayment obligations.
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Consider consulting a Toronto employment lawyer, employment contract lawyer, or wrongful dismissal lawyer if your situation involves significant money, relocation, or special contractual terms.
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Offering to help during the transition demonstrates integrity and leaves the door open for future opportunities.
Choosing the right job is important, but handling the situation correctly ensures your career stays on track and your professional reputation remains strong
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