Giving notice when you resign: 6 ways to avoid trouble

Giving notice when you resign: 6 ways to avoid trouble

Question

I’m getting conflicting advice about giving notice before I resign my job after accepting a new job offer. A career coach told me I have to give notice or ruin my reputation. (“Don’t’ burn bridges.”) A guy I used to work with got burned when he gave notice: his boss demanded he stay a month to train somebody! Another was immediately escorted to the door by company security. (He was counting on a couple of weeks’ more salary.) Not all stories are bad but I don’t like to take risks when I can avoid them. I’d prefer to just make a clean cut without notice. Do you have any tips to play it safe?

Nick’s Reply

giving-noticeI’ll summarize what I think are six important considerations that should help keep you out of trouble when giving notice that you’re quitting your job. I’ll emphasize up front that you must do your own calculation and decide for yourself what is your best course of action.

1. Check your obligations before giving notice

It’s astonishing how many people think their basic freedoms vanish when it comes to their jobs. Just as you’re free to move from one state to another when you wish, without anyone’s permission, you’re free to change jobs anytime you wish (with or without giving notice) — unless you signed an agreement accepting limits on this choice. Check the obligations you agreed to.

Do you have an employment contract? (These are rare in the U.S. and usually involve executive positions.) If you do, read it carefully, or have an employment attorney review it. Keep in mind that the job offer you signed may be a kind of contract, and it may incorporate by reference your company’s employee policy manual — which may say something about a notice requirement. It matters what you sign and agree to when you accept a job.

2. Check for “employment at will” law

In most U.S. jurisdictions employment is “at will” — your company can terminate you at any time for any or no reason, without giving you any notice. But if you work in an “at will” state, you can likewise quit. Whether you should quit without notice is usually your choice. Make sure you know the employment law in your state — and review what you have contractually agreed to.

3. Check your company’s history

Nose around before you decide. Has your employer made life difficult for other employees that quit without notice? Some employers actually handle resignations with aplomb. It’s worth finding out your company’s actual practices because that may factor into how you calculate your risk.

4. Check your reputation risk

That career coach is correct: resigning without notice can damage your professional reputation. (Your employer may put you on a no-rehire list.) If word gets out, it might damage your rep with other employers.

However. This is a risk you must calculate. While quitting without notice can be a crappy thing to do, it might be prudent anyway. Sometimes we have to make tough choices. If giving notice might put you in serious jeopardy, avoiding the risk may be preferable to doing what’s expected.

Now let’s talk about potential jeopardy.

5. Check the consequences

Giving notice because “it’s the right thing to do” might trigger consequences you haven’t considered. Like the friend you mentioned, you may not get two weeks yourself — of additional salary or time between jobs that you expected. You may be told to leave immediately without a chance to gather your personal belongings. (“HR will mail your stuff to you.”)

If you work in sales or get paid a bonus, policy might dictate that you don’t get the money unless you’re employed there on the date it is set to be paid — and unless you provide notice. Quitting without notice may trigger instant recovery of educational or relocation investments the company made in you. If you work on a “draw” in sales, you might actually owe the company money it advanced you against future commissions. (See The 6 Gotchas of Goodbye.)

An employer cannot withhold your pay, but you must understand what constitutes pay in your specific case. But don’t run from choices like these. Depending on the financial rewards and professional opportunities provided by your new job, it may be worth resigning without notice.

6. Check the spite factor

Tendering a resignation usually elicits this question: “Where are you going to work next?” It may seem as innocent as HR’s request that you sit for an “exit interview” and explain yourself. But you owe no one any explanations, or information about your future.

I’ve seen spiteful employers go out of their way to nuke a departing employee’s new job offer. Is there any chance your old boss would contact your new employer and try to poison your well? Please think about this. That offer you accepted could be rescinded. In my experience, it’s rare. But if it does happen, the consequences for you could be dire. A risk might seem small, but when the cost is potentially immense, I don’t think taking a chance is prudent..

My advice: Don’t tell anyone even remotely associated with your old company where you’re going until you’re already there. “No offense, but I’ll be happy to get in touch once I’ve settled into my new job and we can have lunch.”

I’m not suggesting you should never give notice when resigning. But if you decide to part company suddenly, take time to evaluate the risks, and to calculate the potential costs and benefits of quitting without notice. Is your new job worth it?

Do you give notice when you resign a job? Have you been happy with the outcome? Are there circumstances when you think not giving notice in advance of leaving an employer is prudent?

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Employment Contracts: Everyone needs promise protection

Employment Contracts: Everyone needs promise protection

By Bernard C. Dietz, Esq.

You would never think of buying a home without a written contract setting out all of the details of the sale. It would be impossible to buy a new car without signing a contract that sets out the price to be paid and the terms of the deal. And you can’t get a credit card without signing a formal application contract.

So why do people routinely accept job offers without written employment contracts?

employment contractsEmployment contracts aren’t just for CEOs

Your job is the source of the income used to pay for your house, your new car and your credit cards, yet very few people have written contacts with the companies that hire them detailing the terms of their employment. Sure, CEOs and other senior executives have written contracts covering their jobs, but why don’t the rest of us?

The vast majority of the workforce would benefit from a written contract that covers how we’ll be treated, how we’ll be compensated, what we’ll be doing, and more. Otherwise, what governs all of the time we spend away from our families five or more days a week? It is important and prudent to ensure that promises made at hiring time will be respected during the course of employment.

The problems with verbal job offers

In general, at the time of an offer and acceptance of a new job, most new employees are verbally told the details of their new employment, including the rate at which they’ll be paid. But verbal offers are not good for employees for a few reasons:

  1. If the information is not written down and there is a dispute or misunderstanding as to what was said in the past, you will find it very difficult to prove your version of the original agreement.
  2. The manager that made all of the verbal promises may move to another part of the company, or quit, or be fired, leaving no confirmation of your agreement. (See: Gotcha! Get job offer concessions in writing!)
  3. The manager may not have been authorized by the company to make certain promises to you, and the company may refuse to stand behind the manager. The consequences can be profound if you have already resigned your old job and uprooted your family for the new one.

Unless the promises made at hiring time are somehow secured, it can be difficult or impossible — and costly — to enforce them.

An offer letter is not enough

Sometimes, employers provide new hires with an offer letter. This is a good start — a written document that could function as a contract, except that these letters often include statements that negate their contract value.

Problematic statements include:

  • “the terms of the offer letter are subject to change in the future,” and
  • “new employees agree to and are bound by the terms of our employee handbook”.

Too often, the new employee doesn’t get to see the handbook until after the hire is made, and the handbook almost always states that it is subject to change at any time by the company. (See Employers shouldn’t keep secrets from job applicants.)

When the terms of a job offer are subject to change, it isn’t good for the new employee. There are no concrete promises to ensure that the employee is getting (and giving) what was agreed to at the time the job offer was accepted.

At will: The mistake companies make

The number one reason employers are reluctant — or refuse — to provide employment contracts to the vast majority of employees is because:

“We want to be able to fire the employee if we feel they’re not working out, and we don’t want a contract to limit our ability to do this.”

This concern arises from the concept of “at-will employment.”

Simply stated, when a company hires someone at will, it can fire the employee for any or no reason at any time. (Likewise, the employee is free to quit the job.) Most states in the U.S. are considered at-will states, where the legal presumption is that, absent a contract stating otherwise, all employees are at-will employees and employers can fire them for any or no reason at all (other than for reasons of discrimination, of course).

But companies confuse at-will employment with employment contracts. Employers often believe that having a contract with an employee automatically eliminates the freedom of at-will status. This is simply incorrect.

More about employment contracts: Employment At-Will vs. The LeBron James Rule.
A true contract defines a term of time for the employment period, making the arrangement predictable for both parties. It can include an at-will clause. An essential part of the employment contract should be the term, or length of time, of the agreement, which may be six months, a year, or at will, which means “for as long as we both agree to keep it going but either party can end it at any time.” Thus, other important terms can be enforced without limiting the freedom to part company at any time.

The benefits of good employment contracts

When a company misunderstands at-will employment, it misses the clarity and benefits offered by employment contracts. With a well-written employment contract, settling disputes regarding an employment becomes a much simpler and less expensive proposition for both sides.

As with any contract, at the first sign of a dispute the contract can simply be reviewed to confirm the rights and responsibilities of each side. If the contract is not being upheld by the employer or employee and it can’t be resolved by discussion or negotiation, then a lawsuit may be filed. But of course, a central reason for a good contract is to avoid litigation.

When there is a written agreement to refer to, the decision of who is right or who is wrong may be decided quickly as a matter of contract law, rather than as a protracted matter of “he said-she said.”

A good contract protects promises

An employment contract doesn’t have to be a long, difficult document, and it can be tailored for any employee. First and foremost, the contract should protect promises made by both parties at the time of hiring. Both an employee and an employer should look for these simple but very important terms in a contract:

  • The position being offered and accepted
  • The compensation that will be paid
  • Whether the employment is for a set length of time or at will
  • Specifics regarding vacation time and sick leave and whether such time accrues from year to year
  • The responsibilities of both parties with regards to the work to be done and the work environment
  • Terms of separation in the event the employee is terminated or resigns, including guaranteed severance terms and pay, depending on whether separation is “for cause.”

The last item is especially important if there is any post-employment non-compete agreement (NCA) or restrictive covenants. It’s fine to agree to stay out of your employer’s game, as long as you’re being paid to sit on the sidelines.

The contract should be signed by the company and the employee. If you’re the employee, you should store a copy in a safe place, like the safe deposit box where you keep the deed for your house and the title for your car. The contract for your job is at least as important as those documents.

Employment contracts are good for everyone

Having a written contract benefits both the employee and the employer because it makes a clear, definitive record of what everyone is agreeing to at the time of the agreement. These contracts are not just for executives, though an employment contract for an executive will be more complex and detailed than for a staff employee or a middle manager.

Anyone would rest more easy knowing that the details of employment are set down in writing, both to promote success of the working relationship and to avoid controversies. (See: Job offer rescinded after I quit my old job.)

Employment contracts are good for everyone. The main benefit for employers is that they don’t have to worry about potential verbal promises made by a rogue manager that could come back to haunt them. A company can, if it chooses, make it clear that the employment is not promised for any set length of time. The main benefit for employees is that they are protected if their management changes and if memories fade about promises that were made. The contract ensures promises will be kept.

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Bernard C. Dietz is a retired attorney.