Can You Resign Immediately After Signing a New Employment Contract?

What do you do when you just signed a new employment contract, but soon after, receive another offer that you would rather take? Are you able to immediately resign?

If your employer is federally regulated, such as banks and telecommunication companies, there is no duty to give notice of resignation.

For the rest of employers that are provincially regulated, the courts have recognized a duty to provide an employer with reasonable notice of resignation.

What constitutes reasonable notice varies. The more senior your position, the longer it would take to find a suitable replacement, and the more financial loss the employer could suffer from an immediate resignation, all contribute towards a longer reasonable notice period.

While the likelihood of an employer initiating legal action for wrongful resignation is generally low, it’s crucial to understand the terms of your employment contract. Very rarely will the potential gain be worth the expense.

That being said, it is generally better to leave on good terms if possible. Even if there are no legal consequences, a damaged reputation can come back to haunt you in the future. Giving reasonable notice and at least offering to work the remainder of that period, even if eventually declined by the employer, makes it less likely you will burn bridges through accepting the new offer.

How Can Whitten & Lublin Assist with Your Employment Contract & Resignation Matters?

It can be hard to determine the best way to go about resignations, especially if it’s in a position you just started. To better chart the path forward, we encourage employees to seek legal advice. If you are looking for an experienced employment lawyer to advise you with your employment contract and would like more information about what Whitten & Lublin can do for you, please contact us online or by phone at (416) 640-2667 today.

Author – Sohrab Naderi