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You should still have a contract of employment.
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Ok. Let me start over. This isn't about contracts. It's customary to give two weeks notice at your place of employment. Further, a company will deem you as 'rehirable' if you give two weeks. The reason this is important is future companies may call asking if I am 'rehirable', which can influence another company's hiring decision. I work in a state where companies may fire you for any reason (accept illegal reasons like race, etc.), and I may quit for any reason.
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I don't know how regulations work in US, but back here in Brazil, if something similiar happened (here it is 30 day notice) and they didn't want you to stay for the notice period, they would either have to fire you and pay all applicable fines of firing someone, including the 30 day notice payment or they would just ask you to stay home and pay you as you were working during that period.
To alcohol! The cause of, and solution to, all of life's problems - Homer Simpson
----
Our heads are round so our thoughts can change direction - Francis Picabia
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The latter is the thing that non-stupid companies in the US will do as well. Unfortunately some people don't realize that burnt bridges obstruct traffic both ways. 
Did you ever see history portrayed as an old man with a wise brow and pulseless heart, waging all things in the balance of reason?
Is not rather the genius of history like an eternal, imploring maiden, full of fire, with a burning heart and flaming soul, humanly warm and humanly beautiful?
--Zachris Topelius
Training a telescope on one’s own belly button will only reveal lint. You like that? You go right on staring at it. I prefer looking at galaxies.
-- Sarah Hoyt
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This  :
Dan Neely wrote: Unfortunately some people don't realize that burnt bridges obstruct traffic both ways.
To alcohol! The cause of, and solution to, all of life's problems - Homer Simpson
----
Our heads are round so our thoughts can change direction - Francis Picabia
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I agree,especially because other employees at the company will observe what happens to people who give their two weeks notice. If they see people being screwed, they will remember that when it is their time to move on. So the company will burn themselves in the long run by not being able to maintain orderly handovers of responsibility.
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I've lived and worked in TX and FL (both work-at-will states), and every company I've heard of that will release an employee immediately after giving two weeks notice has gone ahead and paid them out for those two weeks. Since I've literally seen dozens of companies do this in both states, I think there has to be a legal reason (if not a requirement, then it at least makes things look better if you were to file suit or something like that). If you know someone that works in HR, I'd give him/her a call. Depending on your income level, it might be worth paying a lawyer a hundred bucks or so for a consultation.
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In another reply I mentioned that I gave my two weeks notice, finished my current project two days later, and the next day, was told to leave and only paid for the two days I worked during my notice period. This particular case was in Florida, so unless the law in Florida has changed since 2000, it would appear that there is no legal requirement to pay an employee for non-worked notice time.
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I live in Florida. The way it works, as I have been told, is that once the two week notice has been given the company can honor it or can move your last day to any day they want within that two week period. They are only required to pay for actual work done, not the entire two week period. So when you put in your two week notice, the company can say we accept your resignation but are making it effective immediately, so you are out two weeks of pay.
modified 15-Jan-14 10:50am.
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"I work in a state where companies may fire you for any reason"
you still have rights, and one of those is compensation in lieu of notice.
and you might want to ask your states employment/labour ministry/board/committee/code, as it seems you are being screwed and don't have an issue with that.
My employer can fire me anytime, anyone's can, but unless it's for stealing or screwing his wife I must be given notice or pay in lieu, and where I am from pay in lieu can work out to a good chunk, so after a couple of years the boss is better off just letting me do his wife, it will cost him less.
If i tell my boss I am quitting in two weeks and he says don't bother coming in, I am still going to get paid for at least two weeks.
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Unreal....
What is the company?
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You really can't protect yourself completely. It is the right thing to do to give at least a two week notice when leaving a company and if they decide to let you go earlier, that's their call and right as the employer (or at least it should be). You just have to deal with what happens.
Having some money stashed away (emergency fund as Dave Ramsey calls it) can make this a minor issue. It's not necessarily easy but it gives you some stability so your not living paycheck to paycheck.
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What a quaint notion - an employment contract? I've never seen such a thing in my life...
Will Rogers never met me.
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If you lived in a civilised country 
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In truth? You don't.
You protect yourself by saving such that you assume this is what will happen.
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Technically, in the US most states say that if you leave a job involuntarily you are entitled to unemployment benefits, even if you have another job lined up. So if you do get fired, the first thing you should do is file for unemployment until you actually start work at the new place.
Also, if you do get fired, call the new place up and say "hey, I'm available early", a lot of places will take the opportunity to get you on board quicker. Most companies don't hire because they need people in a month or two, they need people now and its painful until those people get on board.
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It depends upon the company. One large company I worked for only did new employee onboarding / orientation on alternating Mondays. If your two weeks notice at your previous company made you available on the wrong Monday, you had to wait until the next Monday.
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A lot of companies do that with important positions: when you hand in your notice, that is the last time you will be on the premises, if only to reduce the damage you could do to the company from that time on.
Think about a sales droid: when he hands in his notice he becomes a liability to the company and can't meet customers as their representative.
With development it's less common (certainly in the UK) partly because most companies don't feel that development is (1) important, or (2) a role from which you could do any damage.
We both know that that's horse apples: but then the people who make these decisions aren't technical.
However, in the UK there is a minimum notice period with nearly all full-time jobs (and it's often related to the frequency of pay: monthly wage equals 4 weeks notice) and it applies to both sides. They can't bin you without paying you up to the end of the notice period except for gross offences (which should be listed in your employment contract), any more than you can leave tomorrow without them getting upset and doing whatever they can to get back at you - probably via any wages you would be owed.
Yes - contact the new company and say "they have released me early: I can start Monday if thats good for you" but it's worth reminding the old company of their side of the bargain and see if you can get some money out of them up to at least the end of the notice period as well.
I know one friend of mine who had a 8 weeks notice in his contract, but was let go when he handed in his notice on the Friday. Monday, he started the new job, collected dual wages for two months and used the company car from the old company until the new company car arrived! 
Never underestimate the power of stupid things in large numbers
--- Serious Sam
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OriginalGriff wrote: when he hands in his notice he becomes a liability
But isn't he always? If he hasn't handed in his notice yet, all you know is that he hasn't handed in his notice just yet, but he might do so at any moment.
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You could think of it that way!
But in practice it's different: when someone has handed in his notice he shows he has no further interest in the future of the company: his thoughts are focus on the new companies success instead. So all his future actions are suspect as there is no leverage the company can apply even if he comes in wearing just swimming trunks and perches on the MD's desk all day blowing kisses! 
Never underestimate the power of stupid things in large numbers
--- Serious Sam
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OriginalGriff wrote: he comes in wearing just swimming trunks and perches on the MD's desk all day blowing kisses
Please tell me that's a true story 
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No, not as far as I know. But one ex-colleague did bring a sleeping bag and curl up under his desk all day.
Never underestimate the power of stupid things in large numbers
--- Serious Sam
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True story: One summer when it was extremely hot, one of my colleagues recevied a written note from our department head, declaring (quoted from memory, this is 20+ years ago, but the meaning is preserved):
"It is marginally acceptable to come to work wearing nothing but swimming trunks and a T-shirt.
It is NOT acceptable to come to work in a T-shirt so long that there can be doubts whether you are actually wearing swimming trunks or not."
(My colleague didn't even wear his wristwatch that day, and he walked barefoot. He did wear swimming trunks under his T-shirt, but nothing else. It was his way to protest against the poor office ventilation - his office was at the sunny side of the building (mine was opposite, so I could wear 'normal' clothes.)
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OriginalGriff wrote: However, in the UK there is a minimum notice period with nearly all full-time jobs (and it's often related to the frequency of pay: monthly wage equals 4 weeks notice) and it applies to both sides. They can't bin you without paying you up to the end of the notice period except for gross offences
It works exactly the same way back here in Brazil, I wonder if there are regulations that protect the employee in US.
To alcohol! The cause of, and solution to, all of life's problems - Homer Simpson
----
Our heads are round so our thoughts can change direction - Francis Picabia
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Reading your post made me laugh out loud.
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