Q: Can You Let an Employee Go Immediately After They Give Notice?

A: When an employee submits their resignation, one of the first questions employers ask is: "Do we have to keep them for the full notice period, or can we let them go immediately?" The short answer is—generally, yes, you can let them go the same day unless a contract or agreement states otherwise. However, before making that decision, there are a few key considerations to keep in mind.

Unemployment Implications

If you decide to end the employee’s tenure before their notice period is up and choose not to pay them for that time, your state’s unemployment insurance department may view it as an involuntary termination. In some cases, this could make the employee eligible for unemployment benefits. If avoiding that outcome is important to you, a possible solution is to pay them through their notice period but excuse them from coming in.

Impact on Workplace Culture

Another factor to consider is how this decision will be perceived by your remaining employees. If employees see that giving notice results in an immediate departure, they may choose to leave without notice in the future—potentially leaving you short-staffed or unable to complete critical tasks. Providing notice periods can allow for smoother transitions, knowledge transfers, and better continuity in operations.

A strong workplace culture plays a critical role in how employees approach resignations and transitions. If you’re noticing trends like high turnover or disengagement, it may be time to assess your company culture. Here are five signs your company culture may need attention.

Making the Right Decision for Your Business

While it’s within your rights to let an employee go immediately after they resign, think about how it aligns with your company culture and operational needs. If their role involves sensitive information or high-level access, an immediate departure may be necessary. However, if maintaining a structured transition is important, honoring notice periods—or at least compensating employees through them—may be a more strategic approach.

Strategic retention efforts help businesses maintain stability and reduce the costs of turnover. Understanding what motivates long-term employees versus job hoppers can provide valuable insight into building a loyal workforce. Learn why retaining long-term employees is a smart business move.

This Q&A does not constitute legal advice and does not address state or local law.