If I own a small business but feel that my client will not renew my contract with them, what is my obligation regarding giving notice to my employees?

UPDATED: Sep 29, 2022

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If I own a small business but feel that my client will not renew my contract with them, what is my obligation regarding giving notice to my employees?

I have a service contract for valet parking at a local hospital. My company has held this contract for 9 years..The current contract expires next month. Since the hospital has merged, they claim service contracts will be consolidated. I have asked but not been provided a response as to whether I will get a new contract. What is my obligation, if any, with regard to notice to my employees? As of today I have had no response to my request for contract renewal info from the hospital and don’t think I will be granted a new contract. I am afraid of not giving employees notice if I don’t hear soon.
Any information is appreciated

Asked on September 13, 2015 under Employment Labor Law, Michigan


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 7 years ago | Contributor

You never have to provide notice as a  small business to your employees unless there is a written employment contract with them requiring you to provide notice. Otherwise, without a contract, they are employees at will and employees at will may be terminated or laid off at any time, without any prior notice. That's the law you have to decide for yourself whether you are comfortable not providing notice or feel that morally you should provide some, but it would be your choice whether to do so. Good luck to you and your employees.

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