What is Employee Termination?

‘Employee termination’, also known as employee separation, is the process by which an employer ends the employment relationship with an individual worker. This can occur for various reasons, including:

Voluntary Termination: When an employee chooses to leave the organization on their own accord, typically by resigning or retiring.

Involuntary Termination: When an employer decides to terminate an employee’s employment, often due to reasons such as poor performance, violation of company policies, downsizing, or economic reasons.

Termination with Cause: This occurs when an employee is dismissed for a specific reason, such as misconduct, insubordination, or a breach of employment contract terms.

Termination without Cause: When an employee is let go without a specific reason, typically in accordance with employment-at-will principles, where either the employer or employee can end the employment relationship at any time, for any reason that is not unlawful.

Employee termination involves several important steps, including notifying the employee, conducting exit interviews if necessary, collecting company property, settling any outstanding compensation or benefits, and ensuring compliance with employment laws and regulations to protect the rights of both the employee and the employer.

It’s crucial for employers to handle employee termination with sensitivity, fairness, and adherence to legal requirements to minimise potential legal liabilities and maintain a positive reputation as an employer.