What is Termination of Employment?
Termination of employment signifies the end of an employee’s tenure with a company, which can be initiated by the employee or employer. Various reasons may lead to an employer-initiated termination, including downsizing, subpar job performance, or job redundancy.
Employees on illness-related leaves, absences, or furloughs remain technically employed unless formally terminated with a notice of termination.
Key Takeaways
- Termination of employment signals the conclusion of an employee’s service.
- Employees might voluntarily terminate their employment for better opportunities or personal reasons.
- Involuntary terminations include layoffs or firings often due to economic constraints or employee misconduct.
- Severance packages are discretionary but offer financial cushioning post-termination.
- Eligibility for unemployment benefits applies to those unemployed without any personal fault.
How Voluntary Termination Works
Employees can choose to leave their employment for various reasons, such as finding a better job, retiring, starting a new venture, or opting for a sabbatical.
Voluntary terminations may also stem from constructive dismissals where due to untenable working conditions (e.g., low salary, harassment, heavy commute, long hours), an employee decides to resign.
Forced resignations, termed as ‘constructive discharge,’ can occur if the working conditions are significantly adverse, leading to potential compensation or benefits claims.
Generally, employees are expected to give notice, typically two weeks before termination. Exceptions include immediate resignations or job abandonment.
A significant change in employment status could also make you eligible for COBRA coverage under your present healthcare plan for 18 months, bearing the full premium cost.
How Involuntary Termination Works
Employers may initiate termination through layoffs or firings.
Layoffs and Downsizing
Layoffs often result from uncontrollable facets like economic downturns, organizational restructuring, or loss of necessary skill consumption, and could either be temporary, like during the COVID-19 pandemic, or permanent.
Getting Fired
Poor performance, inappropriate behavior, or ethical misconduct could result in an employee being fired. In ‘at-will’ employment states, employees could be dismissed without a given reason.
Illegal Dismissals
Despite the ‘at-will’ classification, dismissals for excess work refusal, leaves of absence, company complaints, or whistleblowing are unlawful. Discrimination-based wrongful termination allows the affected employee’s pursuit of legal restrain and compensation.
Termination for Cause
Employers have the right to dismiss employees for specific reasons which often include lapses in performance post a prescribed improvement period. In non-prejudice terminations for reasons unrelated to insubordination or misconduct, rehiring remains an option.
Termination Compensation
Some companies offer severance packages under agreed arrangements and aren’t federally mandated. State laws surrounding final paycheck disbursements and unused vacation remuneration vary.
Eligible dismissed employees might secure unemployment benefits temporarily, following the respective state’s policies and the Department of Labor guidelines.
Is Getting Terminated the Same as Getting Fired?
Yes, getting terminated overlaps with getting fired, contingent on employer-specific reasons ranging from job performance to policy violations or poor job synergy.
What Are the Main Reasons For Getting Fired?
Reasons encompassing job performance issues, policy breaches, misconduct, theft, property damage, insubordination, and excessive unapproved absences can lead to termination and moral clauses might also implicate modern-day social media conduct as plausible grounds.
What Is Wrongful Termination?
Wrongful terminations violate employment law standards, like discrimination, retaliation, or unsafe work refusal. Legal recourse remains an option for unjust terminations.
How Do You Fight Termination of Employment?
Responses to perceive unjust terminations include understanding rationale, pursuing internal appeal avenues, gathering justifying documentation, union representation, and, finally, legal counsel.
The Bottom Line
The dynamic evolvement of employee-employer relationships spotlights terminatory variedness. State and federally governed rights might safeguard against illegal dismissals, setting up potential legal remediation avenues. Consult employment laws to lodge any breach claims.
References
- CFI. “Voluntary Termination”.
- SHRM. “What You Need to Know About Termination of Employment”.
- U.S Department of Labor. “FAQs on COBRA Continuation Health Coverage for Workers”.
- Nolo. “Wrongful Termination: Retaliation & Whistleblowing”.
- U.S. Department of Labor. “Termination”.
- U.S. Department of Labor. “Severance Pay”.
- U.S. Department of Labor. “Last Paycheck”.
