Resignation Notice: What are Employers’ rights and Employees’ obligations?
Question: I work for a Bank as Project Manager. I was hired as a contractual employee on a fixed salary for two years ending in December. My employment letter states that a four-week notice is required if I resign. My manager told me that I should look for a change as the Bank may not be able to renew the contract. I found a new job and have submitted my resignation with two weeks’ notice. Can my employer detain me for the remaining two weeks or deduct my salary in lieu of two weeks of notice?
Answer: Many employees expect their employer to provide them with reasonable notice before their employment is terminated. But few realize that the obligation to provide notice is a two-way street: employees are also required to provide their employer with prior notice of their intention to resign. Under employment law, the employee’s failure to do so constitutes a “wrongful resignation.”
Contrary to popular belief, employees generally cannot resign whenever they wish by simply providing two weeks’ notice. Rather, the length of notice an employee has to provide will usually be set out in an employment contract. If there is no such contractual requirement, it will depend on the employee’s position, responsibilities, tenure, and the time it would reasonably take the employer to find a replacement. Should an employee resign without providing the full notice of resignation they agreed to, the employer is entitled to sue for wrongful resignation. Few employers follow through with this, however.
In your case, since you originally agreed to provide your employer with four weeks’ notice of resignation, leaving on only two weeks’ notice may have legal consequences. While your employer cannot force you to work the remaining two weeks, or deduct your salary for those two weeks (unless you clearly agreed to that in writing), it may sue you for damages for wrongful resignation. Specifically, your employer may try to recover any losses it suffered as a result of you leaving on short notice, including lost sales, the costs of hiring your replacement, and the cost of overtime worked by other employees. You should consult an employment lawyer for specific advice about your legal options.
When you resign from a job, what are you entitled to in Canada?
When an employee voluntarily resigns, they are not entitled to severance pay or termination benefits. That said, you’re still owed payment for all hours worked, including unused vacation pay or statutory entitlements. If your resignation is linked to workplace harassment, a major breach of contract, or constructive dismissal, your resignation may not be legally viewed as voluntary—and different rights may apply. It’s important to speak with an employment lawyer to clarify your entitlements and assess whether your departure was truly voluntary under employment law.
Can you be fired after giving notice in Canada?
Yes, an employer can terminate an employee after receiving a verbal or written notice of resignation, but they must comply with employment standards and may owe compensation depending on the situation. For instance, if an employee gives two weeks’ notice and is immediately let go, the employer may need to pay for those two weeks unless misconduct is involved.
Do you have to give a reason for resignation?
No, employees are not legally required to provide a reason for resignation. However, offering a brief explanation in a formal resignation letter can help maintain your business relationship.
If you’re leaving because of a hostile work environment, unsafe conditions, or unresolved harassment, you might have the grounds for a constructive dismissal claim. Before submitting a written resignation letter and making it official, it is wise to get legal advice. We can help you assess whether your situation meets the legal threshold to claim constructive dismissal and ensure you don’t walk away from entitlements you’re owed.
How many weeks notice do I have to give to resign?
The required notice period for employee resignation can depend on your employment contract. Many contracts specify two to four weeks. In the absence of a written agreement, the law looks at various factors such as the length of service, nature of your job, and how difficult it would be to replace you to determine the proper notice period. Courts may consider it an implied term of the employment relationship to provide reasonable notice.
What benefits do you lose if you resign?
Resigning usually means giving up access to severance, termination pay, and Employment Insurance (EI). Group benefits like health and dental coverage typically stop on your last day, unless your employer offers an extension. If you’re enrolled in long-term disability or other insurance plans, those may end too. If you’re resigning due to workplace mistreatment, leaving without legal advice could cost you the chance to hold your employer accountable.
Know Your Rights Before You Resign
Resigning from a job might seem straightforward, but there are legal considerations that both employees and employers must navigate.
At Whitten & Lublin, our team of experienced employment lawyers can help you review your contract, clarify your obligations, and avoid unnecessary risks. We’re here to assist with trusted, strategic legal advice.
Call 416-640-2667 or contact us online for a confidential consultation.