What is an Employee’s Wrongful Resignation in Ontario Employment Law?
If an employee quits their job without providing the employe with proper notice of resignation, it can result in legal consequences for the employee in the form of a wrongful resignation claim.
Picture a typical scenario: as an employee, you finally land your dream job and provide your current employer with two (2) weeks’ notice of resignation. But instead of well wishes, your manager is upset at your sudden decision to quit your job, and accuses you of a “wrongful resignation.” Confused? You’re not alone. While most are familiar with wrongful dismissal, the concept of a wrongful resignation is less understood by both employers and employees in Ontario.
This blog post dives deep into wrongful resignation, exploring what it means, potential consequences for employees, and options for how employers might handle such scenarios. By the end, the aim is to equip you with general educational information regarding how Ontario employment lawyers can help you transition such situations smoothly, understanding your rights and responsibilities.
What is Wrongful Resignation by an Employee?
Unlike wrongful dismissal (which focuses on unjust dismissal by an employer), a wrongful resignation occurs when an employee leaves their job without fulfilling their obligations. This typically centres around failing to provide reasonable notice of resignation.
What is Reasonable Notice of Resignation?
Under Ontario employment law, the concept of reasonable notice of resignation refers to the expected amount of time an employee is legally required provide their employer before resigning (or quitting) their job. While there is no one-size-fits-all answer, the courts typically consider whether there is an employment contract that stipulates a specific notice period of resignation. In that case, the employee is typically required to abide by that obligation to the employer when they decide to resign from their job. If there is no employment contract stipulating a notice of resignation period, employers and employees are typically required to consider:
- Industry standards: the specific nature of the employer’s business or operations may require longer notice of resignation period in order to find a suitable replacement.
- Certain professions: the specific nature of the employee’s job title, duties and responsibilities may require longer notice of resignation period in order to find a suitable replacement.
- Length of service: the longer an employee has worked for the employer, the longer tenure often translates to a longer notice of resignation period.
- Seniority level: higher-ranking positions might warrant longer notice of resignation periods, particularly where the employee is critical to the overall operations of a business.
Consequences of Wrongful Resignation
The legal consequences of an employee’s wrongful resignation can vary depending on specific circumstances, such as whether this issue is addressed in an employment contract. However, there are some potential types of remedies an employer may have to pursue an employee for wrongful resignation, typically a breach of contract. This means that an employer proves the employee violate a signed employment contract with a specific notice period, legal action could be taken. If so, an employer may obtain damages (losses or compensation) incurred due to the employee’s abrupt departure. This could include costs associated with lost productivity, loss revenue, recruitment, or training a replacement.
Employee Rights and Options
As an employee, even if you believe you might be in a wrongful resignation situation, you have legal rights, and it is important to consult with an employment lawyer in Ontario to discuss the following:
- Review your employment contract: this is an important legal document that outlines your obligations regarding notice periods for resignation agreed upon by you and the employer.
- Consult employer policies and guidelines: an employer’s policies, handbook, or guidelines can clarify expectations and potentially offer solutions, such as negotiating a shorter notice period for resignation.
- No Right to a Severance Package: if an employee voluntarily resigns from their job (not the result of a constructive dismissal claim), they legally are not entitled to receive financial compensation in the form of a severance package (or severance pay).
A termination of employment is a difficult and confusing time, especially when it comes to reviewing a severance package, or negotiating a severance package, as a wrongful dismissal impact an employee’s base salary, bonus, health benefits and pension plans. Therefore, in a wrongful termination of employment, it is important for employees to consult with an employment lawyer for a severance package review to understand the impact of wrongful dismissal on pension plans. If you are an employer or employee needing to speak with an experienced Ontario wrongful dismissal lawyer to discuss your options and next steps on how to deal with workplace issues, call Bune Law, employment law firm in Toronto. You will review and get guidance on your severance package before you agree to sign any termination documents, and help ensure that your severance package is fair and reasonable.