Speaking as a Canadian, if you don't fire them you are just a gutless piece of wormdust.
Ditto on that.
Dara,
They've already quit. And they've called and given a two day notice of taking the day off. According to our company policy I CANNOT fire them, unless we'd like to hand over our company to them, with the blessing of the court.
This is California. If there are any CA,NV,AZ,TX folks on here, I would have to say, they may understand this a little better. We are literally at the pointy end of the spear, and we live it every day.