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As such, if you do not promptly return their property, your former employer could have grounds to file a civil lawsuit against you. In some extreme cases, your former employer may also take criminal action in order to ensure the prompt return of company property, such as a company vehicle.
Only six western StatesAlaska, California, Idaho, Nevada, Utah, and Wyomingrecognize all three of the ma- jor exceptions. 4 Three southern StatesFlorida, Georgia, and Louisianaand Rhode Island do not recognize any of the three major exceptions to employment at will.
According to the Fair Work Act 2009, an employer can terminate an employment contract if: It is a genuine redundancy. The termination is not harsh, unjust or reasonable. The termination is in accordance with the Small Business Fair Dismissal Code (contact our small business lawyers if you have any questions).
Employers should consider consulting with their legal counsel if they would like to obtain an employee's written authorization to withhold pay until the employer's property is returned or if they wish to pursue the matter through the courts.
If the employee terminates and does not return the property, you may be tempted to hold back their final pay until they do return the item. However, withholding the employee's final paycheck is against the law.
An employment contract can be terminated at any time by mutual consent.
If there is no appropriately drafted clause or agreement, the employer would have to make a claim in the civil courts against the employee for "trespass to goods" in failing to return the company property.
The exact rules on termination depend on the specifics of your contract. Usually, a contract states that both parties have the option of ending the employment relationship, but the employee needs to give at least two weeks notice before leaving the job.
An employer can only make an automatic deduction from wages in limited circumstances, such as where the contract of employment allows for reasonable costs to be taken to make good any loss or damage to property caused by the employee's wilful act, carelessness or negligence.
Typically, this type of agreement requires the employee to disclose any such inventions to the employer, to "assign" (legally transfer) ownership rights in such inventions to the employer, and to assist the employer in getting a patent on any such inventions.