diff --git a/pkg/daemon/agent/daemon.go b/pkg/daemon/agent/daemon.go
index 83d367481..90963a6e7 100644
--- a/pkg/daemon/agent/daemon.go
+++ b/pkg/daemon/agent/daemon.go
@@ -61,10 +61,7 @@ func BuildWorkspaceDaemonConfig(
 	// build info isn't required in the workspace and can be omitted
 	platformOptions.Build = nil
 
-	shutdownAction := config.ShutdownActionStopContainer
-	if mergedConfig.ShutdownAction != "" {
-		shutdownAction = mergedConfig.ShutdownAction
-	}
+	shutdownAction := mergedConfig.ShutdownAction
 
 	daemonConfig := &DaemonConfig{
 		Platform: platformOptions,
diff --git a/pkg/daemon/agent/daemon_test.go b/pkg/daemon/agent/daemon_test.go
index c80202cf4..e0483433a 100644
--- a/pkg/daemon/agent/daemon_test.go
+++ b/pkg/daemon/agent/daemon_test.go
@@ -15,9 +15,9 @@ func TestBuildWorkspaceDaemonConfig_ShutdownAction(t *testing.T) {
 		want           string
 	}{
 		{
-			name:           "defaults to stopContainer when empty",
+			name:           "passes through empty value from merged config",
 			shutdownAction: "",
-			want:           config.ShutdownActionStopContainer,
+			want:           "",
 		},
 		{
 			name:           "preserves none",