Can You Really Get Sued for Quitting Your Job? Here’s What the Law Says
Leaving a job can be emotional. For employees, it may mean a fresh start or simply the relief of moving on. For employers, it can cause disruption: scrambling to cover workloads, reassuring clients, and managing change. With so much at stake, we sometimes get asked: can an employee be sued for quitting?
The short answer is yes, it can happen, but only in extraordinary situations. Lawsuits against employees who have resigned are rare. Most lawsuits against resigning employees involve other issues like failure to give notice of resignation, use of confidential information, or solicitation of clients or employees. In most lawsuits against departing employees, the employer has experienced concrete, measurable, financial losses from the employee’s sudden exit.
Do employees have to give notice?
Yes, some advance notice of resignation is legally required. If you are wondering about notice in your specific situation, the first place to check is the employment contract. Many contracts specify the amount of notice that needs to be provided for resignations.
If there is nothing in the contract, in British Columbia, there is no statutory requirement under the Employment Standards Act for employees to give notice of resignation. That said, employees still have a common law duty to provide “reasonable notice” when leaving a job.
There’s no set number of days for “reasonable notice”, but two weeks has become the cultural norm. For some roles, that’s more than enough. For senior or specialized positions, or fiduciary employees (more on this below) courts may expect more time.
Most claims come up when someone quits without any warning, takes a new role with a competitor, and pulls clients or colleagues along with them. In those cases, an employer might be able to prove they’ve suffered financial harm. A good example of this is in a case that went all the way to the Supreme Court of Canada in 2008: RBC Dominion Securities Inc. v. Merrill Lynch Canada Inc.
For employees, providing reasonable notice under your contract or common law reduces that risk and helps preserve professional relationships. For employers, reasonable notice buys time to transition and plan for the gap.
What about confidential information?
Former employees using confidential information after leaving the organization is a recurring issue that leads to legal battles. Confidential information is basically anything the employee would not have known without working at the organization, this includes trade secrets or client information.
Even if there is no written confidentiality agreement, courts recognize a continuing duty not to misuse information learned during employment. Employees should walk away with their skills and experience, and not with the employer’s records, customer information or strategies. Employers, for their part, should make sure those expectations are clearly set out in employment contracts and workplace policies, and reinforced before and after a resignation.
In short, employees should leave with their coffee mug, family pictures, and the skills they gained, but not with documents or records that belong to the employer. For employers, that means making sure confidentiality obligations are communicated clearly, ideally in writing, and that former employees understand these expectations.
Competing after quitting
Many employees worry they won’t be able to work for a competitor or start their own business after leaving their job. The answer depends on what’s written in the employment contract and the role of the employee.
Non-compete (or non-competition) clauses are sometimes included in contracts, but courts often strike them down if they go beyond what is needed to protect the employers’ legitimate proprietary interests. Non-solicitation clauses, which stop former employees from bringing clients or colleagues over to a new employer, are more likely to hold up if they are reasonable – meaning they’re limited in time, geography, and scope. This is a pretty technical area of the law, and we strongly suggest consulting with an employment lawyer if you are an employee or employer wondering if this kind of clause in a contract could apply to post-employment competition.
If an employee held a position of particular trust and authority, they could be a fiduciary employee. These employees are expected to act with loyalty and good faith even after they resign. That could include not soliciting clients or employees for a period of time after employment.
Vacation or wage overpayments
Sometimes the dispute between an employer and employee who has quit isn’t about reasonable notice or competition but about money. This can come up when vacation has been taken in advance of accruing it, or if payroll errors leave questions about repayment.
In British Columbia, employers cannot deduct money from an employee’s pay without written consent. An employer could sue to recover an overpayment, but it may not be worthwhile to file a lawsuit over a small sum. Employees who have money withheld without their written consent can file a complaint with the Employment Standards Branch. The practical solution for both sides is to resolve these issues before the last day of work.
Bottom Line
So, can you really get sued for quitting? Technically yes, in specific circumstances, but in practice it is rare. Employers generally only pursue legal action if the employee not given notice or otherwise breached their employment contract and the employer has suffered real and significant harm.
For employees, providing reasonable notice and being mindful of confidentiality, non-compete, and/or non-solicitation clauses can avoid trouble in the long run. For employers, it’s far easier to set out clear expectations to a departing employee and address any outstanding issues before they walk out than to deal with it later down the road.
When handled professionally and effectively, resignations can be a clean start of a new chapter rather than the beginning of a painful legal dispute.
This blog is not legal advice and only provides general information. Every situation must be considered on its own facts.
Need legal advice? Contact us [email protected] or 604-535-7063. Our team of employment lawyers in BC and Alberta are ready to answer your questions.