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

What should you do if you find out that an employee is looking for another job before they’ve officially quit… or even spot them job searching while at work?

It can happen: In iHire’s 2025 Talent Retention Report, 13.5% 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, but is that really the best move? Is it even legal, or would it be considered wrongful termination?

We asked Chrisanne Bowden, iHire’s Principal HR Business Partner, to weigh in on this tricky situation.

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 or breaking their contract.

“You should 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,” continued Bowden.

But that’s not the only reason to be cautious. You could end up hurting yourself in the long run through decreased engagement and trust with your remaining team members.

“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. “And, anytime you terminate not for cause, you are likely impacting other employees. Your remaining workforce feels insecure in their roles, making them more likely to search for other opportunities 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.

“Most employee handbooks address this by having a policy that company time and equipment should be used for company business only,” Bowden said. “It’s hard to argue that the employee’s performance wouldn’t be impacted if work time is used for job searching. 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 yet, a great 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 that a positive work environment, health insurance, commitment to a healthy work-life balance, 401(k) options/retirement plan, and professional development/upskilling opportunities are the top five perks that retain workers.

“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,” Bowden advised. “You don’t have to limit yourself to holding stay interviews just with unhappy employees, either. Consider meeting with all your personnel on a regular basis to get their feedback and reduce employee turnover.”

If an employee already has 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 take action to improve staff retention.

Explore our library of Ask an HR Pro articles for more expert advice. You can also book a free consultation with our HR Services team for personalized guidance. Whether you could use on-call support or assistance with a one-time project, we can help!