Key Takeaways
- Your physician employment contract controls how you can leave.The agreement may address notice, termination rights, repayment obligations, and other requirements that apply when you resign.
- Restrictive covenants can affect what you do after leaving.Non-compete and non-solicitation provisions may limit where you can practice or whom you can contact after your employment ends.
- The circumstances surrounding your departure can matter. Some contract provisions apply differently depending on whether you resign, are terminated, or leave because your employer has breached the agreement.
Will My Physician Contract Let Me Leave My Job?
Leaving a healthcare position is not always as simple as giving two weeks’ notice. Your physician employment agreement may include specific resignation requirements, including how much notice you must provide, how you must deliver it, and what happens after your employment ends.
An employment contract may also contain provisions that continue after you leave. This is especially true for physicians. Restrictive covenants, confidentiality obligations, patient-related provisions, repayment requirements, and other post-employment terms can affect your next job or your ability to open or join a practice.
If you are a physician considering leaving your current position, review your contract before giving notice to understand your obligations and identify potential problems before they become disputes.
Start With the Termination Provisions
Many employment agreements allow either party to terminate the relationship with advance written notice. The required notice period may be 30, 60, or 90 days or longer. Other agreements may contain an initial employment term or different termination provisions depending on the circumstances.
Pay close attention to:
- The required notice period
- How notice must be provided
- Whether the contract automatically renews
- Whether there are different rules for termination with or without cause
- What happens to compensation, benefits, or bonuses when employment ends
- Whether you have repayment obligations
You should also check whether your employer can terminate the agreement without notice or whether certain events trigger immediate termination.
Considering giving notice? Before you resign, have your physician employment contract reviewed so you understand your notice requirements, termination provisions, and any obligations that could affect your departure. Jackson LLP offers contract reviews for physicians, with a written summary of the provisions that matter to you. Book your free initial consultation today.
What If I Have a Non-Compete?
A non-compete, sometimes called a covenant not to compete, is a type of restrictive covenant that can limit where or how you practice after leaving an employer.
For physicians, a non-compete might restrict practicing within a certain geographic area for a specified period after employment ends. The language may also define the types of medical services or practices covered by the restriction.
Whether a non-compete can be enforced depends on the agreement, the circumstances, and applicable state law. No single rule determines the enforceability of every physician non-compete.
The details matter. A restriction covering a small geographic area may have different practical consequences from one tied to numerous employer locations across a large region. The length of the restriction and the circumstances that trigger it also matter.
If your contract contains a non-compete, review the provision before you resign rather than assuming it either applies or does not apply.
Non-Solicitation Clauses Can Also Follow You
Not every restrictive covenant prevents you from practicing medicine. A non-solicitation provision may instead restrict whom you can contact or solicit after leaving.
Depending on the language, a non-solicitation provision could address patients, employees, referral sources, or other business relationships. The provision may also contain exceptions or specify what conduct is prohibited.
For a physician leaving a practice, this can raise practical questions. Can you contact former patients? Can you recruit a colleague to join your new practice? Can you announce your new practice publicly? The answers depend on the specific language of the agreement and applicable law.
A contract review can identify these restrictions and explain what they may mean for your plans before you act.
Does It Matter Why You Are Leaving?
Some employment contracts distinguish between different types of termination. For example, a restrictive covenant may apply if you resign voluntarily or are terminated for cause but not under other circumstances. Other provisions may provide different rights depending on who terminates the agreement and why.
Your circumstances may also affect repayment obligations, bonuses, benefits, or other financial provisions in the contract.
For that reason, review the termination provisions together with the restrictive covenants. Looking at a non-compete by itself may not tell you whether or when the restriction applies.
Other Contract Terms to Review Before Resigning
Restrictive covenants are important, but they are not the only provisions that can affect your departure.
Before giving notice, consider whether your agreement addresses:
- Signing bonuses, relocation payments, or other compensation that may have to be repaid
- Patient records and medical records
- Confidentiality and proprietary information
- Malpractice insurance and tail coverage
- Medical staff privileges
- Ownership interests or equity
- Unpaid compensation, bonuses, or benefits
- Notice requirements and the method for providing notice
- Post-employment obligations
You may also have agreements or amendments outside your primary employment contract. A bonus agreement, shareholder agreement, restrictive covenant agreement, or other document may contain terms that affect your departure.
Should You Have Your Contract Reviewed Before Giving Notice?
If you are considering leaving, having an attorney review your healthcare employment agreement before you submit your resignation can give you a clearer picture of your obligations and options.
A contract review can address questions such as:
- Can I resign now, or do I need to wait?
- How much notice do I have to provide?
- What happens if I do not provide the required notice?
- Does my contract contain a non-compete or non-solicitation provision?
- What circumstances trigger those restrictions?
- Could I continue practicing in the same area?
- Do I owe money back to my employer?
- What obligations continue after my employment ends?
The answers depend on the language of your agreement and the law that applies to your situation. Reviewing your contract before you give notice gives you time to consider your options.
Review Your Contract Before You Resign
If you are considering leaving your physician job, review your employment contract before giving notice so you know what comes next. The terms of your agreement may affect how much notice you must provide, whether a restrictive covenant applies, whether you may owe money to your employer, and what obligations continue after your employment ends.
Jackson LLP reviews physician employment contracts and can explain the provisions that may affect your departure and future practice. We can also discuss questions about non-competes, non-solicitation provisions, termination requirements, and other post-employment obligations.
Schedule a complimentary 15-minute consultation with Jackson LLP to discuss your employment contract and plans for leaving your current position.Â
Free Attorney Consultation
Free Attorney Consultation
Frequently Asked Questions About Physician Contract Reviews
Can a physician resign from an employment contract?
Many physician employment contracts allow resignation with advance notice, but the specific requirements depend on the contract and applicable state law.
How much notice must a physician or nurse practitioner give before leaving a job?
The required notice period depends on the employment agreement and may vary based on the circumstances of the departure.
What is a restrictive covenant in a physician employment contract?
A restrictive covenant is a contractual provision that limits certain activities during or after employment. Common examples include non-compete and non-solicitation provisions.
Can a physician’s non-compete be enforced after leaving a job?
Enforceability depends on the contract, applicable state law, and the circumstances surrounding the employment relationship and departure. Review a non-compete before assuming it is or is not enforceable.
What should I do before resigning from a physician employment contract?
Review the termination provisions, restrictive covenants, repayment obligations, and other post-employment terms before submitting your resignation. An attorney can review the agreement and explain how those provisions may apply to your circumstances.
Can an attorney review my employment contract before I resign?
Yes. An attorney can review your employment agreement and identify provisions that may affect your resignation, future employment, practice location, and post-employment obligations.
