Termination of Employment
When a person is no longer employed by an employer for a variety of reasons, this is known as “termination of employment”. The termination of employment indicates that an employee’s contract of employment with the employer has been ended, regardless of the length or terms of that contract.
Though employment can be ended in a variety of situations, including when an employee resigns, retires, or is laid off, when an employer takes action to end employment, it is called a “termination.” Termination can be either voluntary or involuntary. Involuntary termination is usually the result of failure to adhere to workplace policies and regulations, failure to meet certain standards of performance, or due to misconduct or disregard for workplace safety rules.
Employers must take certain steps when terminating an employee, most importantly, notifying the employee in writing of the decision to terminate their job. Employers must also adhere to local and federal regulations when it comes to the dismissal process and payment of benefits, including the Fair Labor Standards Act and the Family and Medical Leave Act, both of which have rules that employers must meet when dismissing employees.
When an employee is terminated, they are typically entitled to receive notice of termination, unemployment benefits, and severance pay. Notice of termination may include the reasons for the termination, the amount of any compensation the employee may be due, and the date of termination. The notice must be in writing to the employee, and must be provided to the employee at least 30 days prior to the date of their termination from the company.
Employees who were terminated through no fault of their own may be eligible for unemployment benefits, though the amount and type of benefits will vary depending on the state in which the termination occurred. Severance pay is usually provided to employees who are terminated due to layoffs or restructuring. How much severance an employee may receive will depend on the length of service with the company and any agreements previously made in the employee’s contract.
Terminations of employment can be a stressful and upsetting time for both employers and employees. Employers should remember to be clear and concise when communicating decisions to employees. Most importantly, employers must take the necessary steps to protect their own interests and the interests of their employees to ensure the termination is handled properly and legally.
