Updated July 28, 2026. Quick answer: Shares already purchased are yours and their holding-period clocks keep running after you leave. Contributions accumulated toward a purchase that has not happened yet are typically refunded in cash rather than used to buy shares.
Three different things, three different answers
| What | What happens |
|---|---|
| Shares already purchased | Yours. Both holding clocks continue. |
| Contributions not yet used | Usually refunded in cash, no shares purchased |
| The offering period itself | Ends for you at termination |
The clocks do not care that you left
Qualifying treatment needs two years from the offering date and one from purchase. Neither resets or accelerates on termination — so shares bought shortly before you leave can still reach qualifying treatment long after, if you hold them.
Leaving days before a purchase date usually forfeits that purchase entirely and returns your contributions as cash. If the stock has risen since the offering date, that discount is the thing you are walking away from — price it before setting a last day.
Sources
IRC §423(a)(2) (employment requirement); IRC §423(a)(1); Treas. Reg. §1.423-2.
This states what the cited authority says. It is not tax advice.