Before You Fire... Read This: The Case for Letting Employees Work Out Their Notice

When an employee resigns and gives notice, how you handle their final days matters—not just for them, but for your entire team.

A client recently asked if they could terminate an employee early after they had already given their two-week notice. The reality? How you handle these situations impacts your company’s culture, reputation, and potential risk exposure.

Here’s why I advised against terminating the employee early:

1️⃣ Setting the Right Example – If you cut a notice period short, you send the message that notice periods don’t really matter. That precedent can discourage employees from providing notice in the future.

2️⃣ Protecting Your Reputation – How employees leave shapes how they talk about your company. Letting them complete their notice fosters goodwill, making it more likely they’ll speak positively about their experience.

3️⃣ Avoiding Unnecessary Risk – Firing an employee during their notice period can create legal and compliance risks, depending on the state’s employment laws.

4️⃣ Financial Impact – If an employee resigns voluntarily, they’re typically not eligible for unemployment benefits. If you terminate them early, that may change—potentially increasing your company’s costs.

HR decisions aren’t just about policies—they’re about people, trust, and long-term business success. Handling resignations thoughtfully ensures smoother transitions and a stronger workplace culture.

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