Working notice is the most economical way to terminate an employee
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Published May 02, 2025
5 minute read
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In our current economic climate, some businesses are reaching the perilous point where they have a Hobbesian choice: either retain employees that they cannot afford or terminate them and face the costs of dismissal lawsuits, ultimately risking bankruptcy.
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What choices do companies have in those circumstances, and, even for businesses in less dire straits, what can be done to reduce severance costs?
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Too many lawyers simply tell employers how much they will need to pay rather than strategizing alternatives, such as:
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Providing an employee with advance notice of their impending dismissal (also known as working notice, since the employee must stay in their job in the interim) is seldom used in this country. Some employers simply do not know of the option, while others are concerned about its impact on morale or confidentiality, or of potential sabotage while a terminated employee remains in the workplace.
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In many circumstances though — especially if the...
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