Introduction:

The question of whether an employer can include a specific notice period in resignation contracts is an important consideration for both employers and employees. While such clauses are not uncommon, it is crucial to understand the legal implications and potential enforcement measures. This article delves into the details of these clauses, their enforceability, and the actions an employer can take if such clauses are not adhered to.

Can Employers Enforce Specified Notice Periods in Resignation Contracts?

Common Practice:

Employment contracts may include provisions requiring employees to provide a specified notice period, often ranging from two weeks to several months. This is particularly common for salaried employees in key positions. For example, in a previous position, the contract stipulated a notice period equivalent to a paid time off (PTO) entitlement, which was five weeks. Despite the initial working agreement, the employee provided three months' notice, highlighting the flexibility with which notice periods can be negotiated.

Employment Rights:

Employees are generally not bound to continue working and can terminate their employment at any time. However, resignation may result in the loss of a severance package, except in the case of top management, where severance is rare. Outside of high-level positions, employees typically forfeit a good reference for a neutral one, if they quit without notice.

Professional Conduct and Flexibility:

Professional Notice Period:

It is universally recognized that providing a notice period when resigning is both professional and necessary. Studies have shown that a two-week notice is customary and should always be given. This allows for a smooth transition and shows respect for the employer and colleagues.

The Strategy of Leaving with Notice:

Employees often feel compelled to give notice, even if they are no longer interested in their current role. However, if the employer insists on continued presence, employees should adopt a strategic approach. Sitting in the office with coffee and reading the newspaper can effectively communicate disinterest. This tactic usually prompts the employer to request the employee leave the workplace, avoiding undue loss of productivity.

Penalties and Enforced Clauses:

Enforced Clauses:

Employers can include clauses in the contract to impose penalties for failing to adhere to the notice period. These penalties might include withholding certain benefits or bonuses. For instance, instead of a pro-rated company-wide bonus, employees may be required to forfeit non-earned bonuses.

Non-Enforced Compensations:

Employers cannot require employees to forfeit wages or accrued vacation time. However, unearned bonuses and similar incentives are fair game for enforcing the notice period. Other incentives, such as a gift card for completing an exit interview after the full notice period, can be conditioned on compliance.

Legal Integrity:

Employers have the right to write any contract they see fit. However, the onus is on the employee to ensure they are comfortable with the terms before signing. If dissatisfaction with a contract clause arises, employees should seek alternatives in the job market.

Conclusion:

Specified notice periods in employment contracts are prevalent but not without considerations. While employers can enforce such clauses, employees retain their right to leave at any time. Professionalism, strategic planning, and understanding the legal landscape are essential when managing the resignation process.