When an employee submits their resignation, your first instinct might be to wrap things up (and quickly). Especially if emotions are high or there's no pressing need for a transition period.
But before you cut things short, it’s worth understanding the legal, practical and cultural impact of ending someone's employment early.
In most states, including both New York and New Jersey, employment is at-will. This means both the employer and employee can end the working relationship at any time, for any reason (as long as it's not discriminatory or retaliatory), and without notice.
So, if an employee gives you two weeks' notice, you're generally within your rights to say, “Thanks, but today is your last day.”
Unless there’s a contract or company policy that states otherwise, you’re not obligated to keep them on during their notice period.
You can however choose to keep them during this period, especially if you need time to transition responsibilities or bring someone new on board. Think about your team too! Do they have the bandwidth to cover the gap while you search for replacement?
With that said, exceptions do exist. If your company has an employment agreement, union contract, or even a written policy that guarantees the right to work out a notice period (or to be paid for it) then you’ll need to follow those terms. Ignoring them could open you up to legal liability or claims of breach of contract.
Always review your offer letters, employee handbook and policy documents before making a final decision of letting someone go.
Here’s where things get sort of tricky. If an employee resigns and you decide to end their employment immediately without paying through the notice period, the state may view that as an involuntary termination—not a resignation. That could make the employee eligible for unemployment benefits.
To avoid that gray area, many employers opt to pay employees through the notice period, even if they ask them to stop working right away. This protects your business and maintains goodwill.
Letting an employee go the moment they resign might be tempting to do… but don’t underestimate the ripple effect on your team.
If employees see their coworkers being shown the door the moment they give notice, they may start to question the value of giving any notice themselves. That could lead to last-minute resignations, incomplete projects, and no time to train replacements.
Even if you don’t need them to work through their notice period, paying them for it shows respect and maintains morale. How you handle resignations will reflect your overall culture and a respectful exit process will help reinforce trust & protect your reputation with your employees.
That matters more than you think!
Yes, you can end employment the day someone gives notice. But should you? We recommend weighing the legal, operational, and cultural considerations first.
If you’re ever unsure, Megapay clients can now get access to expert HR support—so you’re never navigating these moments alone.