Early Termination of Employment Contract by Employee

Early Termination of Employment Contract by Employee: What You Need to Know

An employment contract is a legally binding agreement between an employer and employee, outlining the terms and conditions of employment. While the contract is meant to be a guide for both parties on expectations and obligations, there may be circumstances where an employee may want to terminate the contract early. In this article, we will explore what early termination of an employment contract by an employee entails and what you need to know.

Why Do Employees Terminate Employment Contracts Early?

There are various reasons why an employee may want to terminate their employment contract early, including:

1. Better Opportunities: An employee may receive a more lucrative job offer or an opportunity to work for a competitor.

2. Personal Reasons: An employee may need to relocate due to personal reasons such as family obligations or health issues.

3. Conflicts: An employee may have conflicts with their employer or colleagues that make it difficult for them to continue working.

4. Unreasonable Expectations: An employee may feel overwhelmed by the job responsibilities or feel that the employer has unreasonable expectations.

What are the Consequences of Terminating an Employment Contract Early?

Terminating an employment contract early can have several consequences for the employee. These may include:

1. Breach of Contract: Termination of an employment contract before the agreed-upon date constitutes a breach of contract. This means that the employee may be liable for damages or penalties as agreed upon in the contract.

2. Loss of Benefits: Employees may lose out on benefits such as vacation pay, health insurance, and bonuses if they terminate the contract early.

3. Negative Reputation: Terminating an employment contract early may damage an employee`s reputation, as it suggests that they are unreliable or unprofessional.

4. Legal Action: An employer may take legal action against an employee who terminates a contract early, especially if the employee is in a position of trust or has access to confidential information.

How to Terminate an Employment Contract Early

If an employee wants to terminate their employment contract early, they must follow the proper procedures to avoid legal consequences. These may include:

1. Reviewing the Contract: The employee should review the employment contract to understand the terms and conditions of early termination. The contract may include notice periods, termination fees, or other conditions that must be met.

2. Notifying the Employer: The employee should notify the employer of their intention to terminate the contract early, explaining the reason for their decision.

3. Negotiating Terms: The employee may negotiate terms with the employer to avoid any legal consequences.

4. Documenting Everything: The employee should document all communication with the employer, including emails, letters, and phone calls, to protect themselves in case of any legal action.


Terminating an employment contract early can have serious consequences for both the employee and the employer. Employees should carefully review their contract and follow the proper procedure to avoid any legal action. If you are considering terminating your employment contract early, consult with a legal professional to understand your options and the potential consequences.