Resigning is the one way of leaving a job where you control the date, which means most of the money questions can be settled before you give notice. This checklist goes through them in the order they usually come up.
1. Your cash cushion
Work out your essential monthly costs (rent or mortgage, groceries, utilities, insurance, minimum debt payments) and how many months your savings would cover if the next pay cheque came late. A move straight into a new job needs less cushion than a career change, a return to school or a switch to self-employment, where income can take months to start. The emergency fund calculator turns your expenses into a target.
2. EI after quitting
Quitting voluntarily usually means no EI regular benefits, unless you had just cause to leave and no reasonable alternative. What counts, and the evidence that helps, is covered in whether you can get EI if you quit. If you plan to rely on that route, gathering the records (emails, complaints to HR, incident reports) is easier before your last day than after.
3. When your benefits end
Group health, dental, life and disability cover often stop on your last day or at the end of that month, and life cover may carry a short window to convert to an individual policy. The end dates, conversion rights and replacement options are in keeping benefits after leaving a job.
| Benefit | What to confirm with HR or the plan booklet |
|---|---|
| Health and dental | The exact end date, and whether pending claims can still be submitted |
| Prescriptions | Whether refills before the end date are covered |
| Group life | Whether it can be converted, and the deadline; life insurance through your employer compares it with your own policy |
| Disability | Whether cover can continue; individual disability insurance is the usual replacement |
| Employee assistance program | When access ends |
4. Group RRSP, matching and pension money
| Item | What to check before leaving |
|---|---|
| Group RRSP | How to transfer the balance to your own RRSP, and any fees |
| Employer RRSP match | Whether employer contributions are subject to a vesting period; how employer RRSP matching works covers vesting and what happens when you leave |
| DPSP | The vesting terms; the group RRSP vs DPSP comparison explains how the two differ |
| Defined contribution pension | Your transfer options and the plan’s deadline to choose |
| Defined benefit pension | A statement of your deferred pension and any commuted value option |
How an employer match shows up on your T4 is covered in whether an employer RRSP match is taxable. Leaving shortly before a vesting date can cost unvested contributions, which is worth comparing with your planned last day.
5. Your contract
| Clause | Why it matters |
|---|---|
| Resignation notice | Employment standards law in some provinces, and many contracts, require the employee to give notice too |
| Non-compete and non-solicitation | May limit where you work next or who you contact; Canadian courts enforce these only when reasonable in scope, geography and duration |
| Signing bonus or relocation clawback | May have to be repaid if you leave within a set period |
| Training cost repayment | Some agreements require repayment of courses or certifications |
| Intellectual property | Work created on the job may belong to the employer |
6. Tax on your last pay
| Item | What to know |
|---|---|
| Final pay cheque | Taxed through payroll like any other pay |
| Vacation pay owed | Taxable employment income in the year it is paid |
| A payment on leaving | Usually taxable; a resignation normally doesn’t bring severance pay, which is owed when the employer ends the job |
7. Bridging the gap
| Option | Trade-off |
|---|---|
| New job lined up | The gap between your last and first pay day is the main risk |
| Freelance or contract work | Invoices can take weeks or months to be paid |
| TFSA withdrawal | Tax-free; the room comes back on January 1 of the following year |
| RRSP withdrawal | Fully taxable, with tax withheld at source and the room lost |
| A partner’s income | Covers more if the budget can run on one income |
Many people draw on cash and TFSA savings before RRSP money because of the tax cost of an RRSP withdrawal.
8. Documents to collect
| Collect before you leave | Why |
|---|---|
| A letter confirming your dates and title | Mortgage, rental and immigration applications ask for it |
| Your Record of Employment | Needed for any EI claim; the EI application guide explains how employers issue it and how to check it |
| Final pay stubs | A record of what was paid and deducted |
| Benefits end dates in writing | Avoids gaps in cover |
| Pension and group RRSP transfer forms | Plans set deadlines for choosing |
| Performance reviews and references | Harder to get after you leave |
If a final pay cheque or vacation pay doesn’t arrive, an employment standards complaint is the free way to recover it.
Checklist
- Savings cover your essential costs until the next income starts
- Next income source confirmed, or a bridge plan in place
- Benefit end dates confirmed and replacement cover arranged
- Contract checked for notice, clawback and non-compete terms
- Group RRSP, DPSP and pension options obtained in writing
- Copies of reviews, references and records saved
- Resignation letter prepared with the notice your contract or province requires
More on employment rights and workplace benefits is in the workplace rights hub.