Breaking Up Is Hard To Do: Dealing With Departing Employees

When a key employee resigns, an employer may be relieved to escape the costs of often-litigated and sometimes significant termination or severance pay. In some situations, however, a resigning employee can end up costing a company even more than if they'd been terminated. If the employment relationship has soured, a disgruntled employee can do considerable damage to a company's resources and reputation.

Employers should be aware of several legal considerations and developing areas of law that may provide relief when key employees leave:

• Notice of Resignation. Leaving on short notice can sometimes render an employee liable to the employer for damages that arise as a result — such as the costs of recruiting or relocating a replacement. The appropriate length of an employee's reasonable notice of resignation will depend on factors such as the nature of the job, the seniority of the role, and the difficulty the employer will face in finding a replacement. As soon as