What does termination of employment mean?
Termination of employment refers to the end of an employee’s job, either voluntarily or involuntarily. Reasons for termination include downsizing, poor performance, or layoffs.
By Douglas Wade, Attorney
Email | Call (800) 484-4610
Have a quick question? We answered nearly 2000 FAQs.
Table of Contents
What Does Employment Termination Mean?
The conclusion of an employee’s employment with a corporation is referred to as a termination of work. A worker may be removed from their position voluntarily or as a result of an employer’s decision. There are several reasons why an employer might go ahead with the termination of an employee’s employment, such as downsizing, subpar performance, or layoffs.
If a worker’s position hasn’t been officially ended with an announcement of termination and they aren’t working due to sickness, leaves of absence from work, or furlough, they are still regarded as employed.
Important Points
- The term “termination of employment” describes how an employee’s employment with a corporation ends.
- An employee may be terminated voluntarily if they decide to quit on their own.
- When a business reduces staff, performs job cuts, or dismisses an employee, it is considered an involuntary termination.
- Since severance payments are optional, a business is not required to provide them to workers whose position is terminated.
- If an employee is jobless due to circumstances beyond their control, they may be qualified to collect unemployment benefits.
The Procedure for Voluntary Termination
Any time they choose, a staff member may willingly leave their position with a corporation. When someone wants to take an absence from work, retire from employment, begin a company of their own, or pursue a better job elsewhere, they typically do this.
Another circumstance that could lead to voluntary termination is constructive dismissal, also known as constructive discharge. This indicates that the worker quits their job because they were left with no other option. For a variety of reasons, such as inadequate pay, discrimination, a new job site that is more distant than the worker can safely commute, and extended hours of work, they may have been subjected to severe duress and challenging working conditions.
Constructive dismissal also includes the practice of forcing a worker to leave after being given a warning to do so or face termination. The worker may be eligible for benefits or compensation if they can demonstrate that the company’s activities were illegal while they were employed.
When an employee leaves the job of their own volition, they can be required to give written or verbal notice of their resignation or an advance notice period. A 2-week notice of termination is often required by most sectors for employees. Sometimes an employee provides notification when they leave the company, and other times they don’t offer any sort of notification at all, like when they quit or don’t show up for work.
Important: Your current group medical plan may provide you with 18 months of COBRA health insurance if your work changes as a result of a shift in hours, termination, or layoff. Should you decide to stick with the identical plan, you will be paying the entire monthly cost.
How Involuntary Terminations Work
When a worker is fired, laid off, or dismissed by their employer, it is known as an involuntary termination of service.
1. Downsizing and Layoffs
Unlike employees who get fired, those who are laid off typically leave the company for no reasons of their own. Employers frequently choose to reduce headcount or lay off staff members in order to reduce operational expenses, reorganize, or simply because they no longer require a worker’s skill set. Layoffs can be permanent due to restructuring choices, or they can necessitate companies to temporarily stop particular roles, as was the situation throughout COVID-19.
2. Being Fired
Typically, low performance at work, inappropriate behavior, or an attitude that is out of step with the company’s values result in an employee’s termination from their position. Additionally, unethical behavior that goes against the company’s guidelines could result in their termination.
Some states have laws recognizing at-will employment, which allow an employer to fire a worker without cause if they are not meeting performance standards or breaking business policies. In actuality, the employer is not required to provide a justification for the worker’s termination.
3. Illegal Termination
While employment-at-will agreements do not mandate warnings or justifications for a termination, a company is prohibited from terminating an employee for a number of reasons, such as:
· Refusing to put in more time at work than what is laid out in the agreement
· Taking time off
· Notifying the HR division about a situation or an individual
· Industry regulators receive whistleblower messages
In such cases, an employee can’t be fired. A company may face legal repercussions for wrongfully terminating a staff member for using their legal liberties when they did so in violation of the law.
An employer may also be in violation of the law if they fire an employee due to discriminatory factors including their nationality, disability, religion, color, age, gender, or sexual orientation. If an employer is proven to have fired an employee improperly, they may be forced to pay the victim compensation and/or allow them to return to the workplace.
4. Termination with Justification
Employers have the option to terminate a worker for a specified reason in addition to at-will employment. If an employee is let go for any reason, the company must place them on a sixty or ninety-day job improvement plan during which they must strengthen their commitment to their job. In the event that the testing phase ends without the employee showing improvement, they may be fired for reason and discharged with prejudice.
A company may fire a worker without cause in specific circumstances. This suggests that the worker’s termination was due to factors other than incapacity, disloyalty, or improper behavior at work. The worker can be brought back for a comparable position in the future under such circumstances.
5. Termination Compensation
A notification of termination and payment, sometimes known as severance pay, may be given by some businesses to their staff members. This is typical of workers who are fired without cause after more than 3 months of employment. When a corporation offers severance, it usually does so either as a result of a confidential agreement reached with the staff member or because it is outlined in the manual for workers. Recall that the FLSA (Fair Labor Standards Act) does not mandate severance payments.
Federal law does not require employers to issue a final paycheck to a terminated employee right away. State regulations, on the other hand, may differ and require the business to give the impacted worker their last payment as soon as possible along with any accumulated and unused vacation time.
Unemployment compensation may be available to anyone who loses their job due to no error of their own. For those who are jobless and searching for work, each state manages a UI (unemployment insurance) program that provides them with temporary financial support. Comprehensive information regarding benefits for unemployment insurance is available from the U.S. DOL (Department of Labor).
Quick fact: It’s usual to refer to the final day with the company as your termination, separation, or end date.
Is Getting Fired the Same as Getting Terminated?
If you get fired, that means your employment is over. Your employer ought to inform you of the specific reasons behind your termination. For misbehavior, subpar work, or just because you’re no longer an appropriate match for the job or company, you might lose your job.
Which Are the Most Common Causes of Termination?
For misconduct, subpar work performance, breaking corporate policy(s), stealing, causing damage to business property or using company resources for personal purposes, insubordination, taking excessively many unpaid sick days, or persistent tardiness, employers have the right to terminate an employee.
Certain businesses incorporate ethical provisions into their contract of employment, requiring workers to adhere to specific standards both within and beyond the workplace. Therefore, it can be sufficient grounds for terminating an employee if their social media behavior violates these guidelines.
What Constitutes a Wrongful Termination?
When a worker is fired for conduct that is illegal under employment regulations, such as retaliation, discrimination, or whistleblowing, it is known as wrongful termination.
Wrongful termination is also committed by employers who fire workers for refusing to comply with specific instructions, such as performing risky or illegal work. Employment rules are also allegedly broken by businesses that alter working circumstances abruptly, ultimately compelling a worker to quit or face termination.
Those who have been unlawfully fired have the option to sue their previous employers.
How Do You Combat Employment Termination?
If the cause for your termination was a valid one, like restructuring or property theft, you might not be entitled to contest the termination. You do have some options, though, if you think your termination was unjustified.
Ensure that you know why you are being let go. Should the situation permit, file an appeal with the company you work for or the human resources division of the business. Request copies of all the paperwork you have—your employment file, the contract of employment, and any correspondence you and your boss may have regarding your job performance. Speak to a representative if you are a member of a union. For legal representation in court, should you have an argument, you can also speak with an employment attorney.
The Final Word
The grounds for the breakup of an employee-employer relationship are numerous. While some workers may choose to resign from their positions voluntarily, others may lose their jobs due to misbehavior, subpar work, or other circumstances.
If your employment was terminated, you have rights. For example, if you decide to quit on your own volition, you can withdraw your resignation. Furthermore, if you lose your work for no apparent reason, you are entitled to file a claim for unemployment insurance. If you feel that your employer prejudiced against you or retaliated against you for taking a period of absence, you may be able to pursue legal action against them. If some of these sound familiar, make sure you consult an employment attorney.
Have a quick question? We answered nearly 2000 FAQs.
See all blogs: Business | Corporate | Employment
Most recent blogs:
See all blogs: Business | Corporate | Employment