By Howard Levitt and Jacqueline L. King

Next time you leave a job or handle a resignation, remember: one poorly handled resignation can cause months of litigation

After particularly difficult days, it is not uncommon to feel you have reached your breaking point and want to quit on the spot. While most employees have enough self-control to refrain from doing so, some are more susceptible to the impulsive “rage quit.”

Take, for example, the JetBlue fight attendant who, after a particularly overwhelming day — which included being cursed at by a passenger and hit in the head with a piece of luggage — took control of the plane’s announcement system, cursed back at the offending passenger, grabbed a beer, said, “It’s been great,“ then opened the emergency door and slid down the chute to freedom. He truly held nothing back.

Undoubtedly, quitting your job can be liberating. But if you think you can just walk out the door without consequence, think again. It is not just employers who have legal obligations at the end of an employment relationship. Fail to hold up your end of the deal and you might find yourself in a lengthy legal battle or scrambling to repair your reputation.

Employees: It is not just a goodbye; it is a contract

When an employee resigns, the initial rush of freedom can cloud their judgment. They might think, “I’m free!” but the reality is far more complicated. Leaving without fulfilling the terms of an employment contract has repercussions. Whether you are fed up with your boss or have a shiny new job waiting for you, you are expected to follow through on your end of the bargain — specifically, the notice of resignation period.

The notice period: more than just a courtesy

Most employment contracts include language requiring that you provide notice before actually departing. The length of the notice period can vary based on your contract, role and location, but it is generally at least a few weeks in duration, sometimes many months.

If an employee fails to provide sufficient notice, they could face serious consequences if their sudden departure results in financial damage or operational chaos for their employer. In such instances, employers could sue for breach of contract, claiming that the employee’s abrupt exit led to unexpected costs associated with not having the work performed, finding and training a replacement, or disrupting key client relationships.

In 2022, the British Columbia Supreme Court considered the reasonable notice that a dentist — hired to work in a small dental office and paid a portion of his billings — owed his employer. The dentist resigned to start a competing business and gave six weeks’ notice. The court found that he should have given his employer three months, and that his failure to do so cost the employer damages in the amount of the revenue he would have brought in less the amount of revenue generated by his replacement.

The courts take a more stringent view of the notice requirements with more senior positions, particularly where the departing employee is competing with their former employer.

The ramifications are not just legal. Previous employers may be more inclined to provide a negative reference to the new employer if you’ve left them high and dry.

As for our flight attendant — shortly after returning home from quitting, he opened his door to several police officers and was arrested for criminal mischief and reckless endangerment for opening the emergency chute without warning. While his case is an extreme example of quitting in style, the underlying message is that quitting responsibly and with professionalism, while perhaps less satisfying in the moment, will undoubtedly be less punishing down the road.

Employers: you are not off the hook either

Sure, employees have obligations, but what about employers? An employer cannot let a disgruntled employee go without first understanding whether they have actually resigned.

Imagine your employee storms out after a heated argument, claiming they have quit. But did they? Was it a genuine resignation or simply an emotional outburst? In Canada, it is the employer’s responsibility to verify the resignation. Yes, that is correct — the employer is obliged to confirm that the employee actually meant what they said.

If an employee says they are quitting, the employer must confirm that intent, preferably in writing, and it is not always as simple as taking them at their word. Misunderstandings happen — especially in high-stress environments where emotions run high — and employers are legally required to ensure the employee’s exit is clear, documented and final. Failure to do so could lead to the employee later claiming they were forced out, and the employer facing a wrongful dismissal lawsuit.

Employers need to tread carefully, especially when dealing with high-performing employees or those in vulnerable positions. If the resignation is ambiguous or suspicious, it is better to clarify with a formal meeting, have them submit a resignation letter, accept the resignation in writing and provide a clear end date for their employment.

An additional cost: damage to company culture

Legal headaches aside, there is a deeper, more insidious cost to a poorly handled resignation. A sudden, unexplained exit can create tension in the workplace, erode trust between management and employees, and harm morale. Colleagues may feel insecure about their own job stability, and those left behind might be forced to pick up the slack, leading to resentment.

The next time you are ready to leave a job or handle a resignation, remember this: The fine print matters. One poorly handled resignation could cause months of litigation.

By understanding and following the legal requirements, both employees and employers can ensure a respectful, smooth and professional transition. Whether you are an employee preparing to move on or an employer managing a resignation, clear communication and adherence to legal obligations goes a long way in maintaining a positive relationship. If there is any doubt, seek legal advice immediately.