Ask an HR Pro: Can I Fire an Employee for Looking for Another Job?

Discovering an employee is keeping an eye on the job market shouldn't really surprise you, especially recently, but you don’t normally learn about it until they’ve given their two weeks’ notice. However, you might have caught wind that an employee is looking for a job before they’ve officially quit, or even spotted them job searching at work. It’s definitely happening – according to iHire’s 2024 Talent Retention Report, 23.1% of employees surveyed said they had searched for a new job while “on the clock” at their current job.

Your first instinct may be to let that employee go and find a new one, but is that really the best move? Is it even legal, or would it be considered wrongful termination? In this month’s Ask an HR Pro, we asked Chrisanne Bowden, iHire’s Principal HR Business Partner, to weigh in.

Can I Fire an Employee for Looking for Another Job?

“In most cases, the short answer is yes,” Bowden said. “You can terminate somebody if you learn they're looking for another job, but it may not be a good idea for many reasons.”

Firing someone because they are looking for another job would fall under not for cause termination for most workplaces. That means the employee didn’t commit a serious breach of conduct, such as stealing, doing drugs at work, or breaking their contract. Bowden said to be careful when firing without cause.

“It can be challenging to prevent any kind of discrimination claim with a not for cause termination, so if your employee is an older worker or a member of another protected group you could face some form of legal action.”

But that’s not the only reason to be cautious. You could end up hurting yourself in the long run through decreased engagement and potentially even higher employee turnover.

“Terminating in this manner will likely cause the employee to be eligible for unemployment benefits, which could extend out for a very long period of time and impact your overall experience rating,” Bowden warned. “Finally, anytime you terminate not for cause, you are likely impacting your overall employee engagement. Your remaining workforce feels insecure in their roles, thus making them more likely to move on as well.”

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What If an Employee Is Job Searching at Work?

Bowden did clarify that you may have grounds for a termination with cause if the employee is looking for a job while they’re supposed to be working, especially if it affects their performance.

“In fact, most employee handbooks address this by having a policy that company time and equipment should be used for company business only,” she said. “It's not uncommon for employees to actively engage in job searches on company time. It’s hard to argue that the employee’s performance wouldn’t be impacted if any work time is used on the hunt for a new job. If it can be proven that this is occurring, it’s certainly grounds for termination.”

What Should You Do Instead of Firing?

If your employee is only looking for jobs and hasn’t officially quit, the best option is to talk to them. Stay interviews are a powerful tool for determining what pain points a worker may be experiencing and can give you a path forward to keep them around. Our report also found pay raises, more flexible schedules, clear growth/advancement opportunities, and training and professional development opportunities as the top things an employer could offer to convince an employee to stay if they got an offer elsewhere.

“If you allow them to be open and honest, without the fear of retaliation, you can learn a lot about what they need for job satisfaction,” Chrisanne advised. “You don’t have to restrain yourself to a stay interview for this one employee, either. Consider holding one for all your top personnel to reduce employee turnover.”

If they already have one foot out the door and a proactive approach isn’t going to cut it, exit interviews are the next best thing. These allow you to get a candid assessment of your company’s work environment, identify problem areas, and improve staff retention.

For more retention advice, head to our Employer Resource Center. You can also book a free consultation with Chrisanne or another member of our Outsourced HR Services team for personalized guidance. Whether you could use on-call support or assistance with a one-time project, our HR experts can help!