What Are The Four Types Of Termination?

Breaking the news to an employee about a contract termination is not an easy task. Although it might be appropriate if the employee in question has violated any company’s terms or laws.

Either way, it might always come as a shock to an employee who did not see it coming. So it is important to manage the termination of employment carefully. And in this article, we explain the types, the meaning of termination, and a list of helpful steps to do just that.

What Is Employment Termination?

Employment termination is the process of ending a job contract. In some cases, termination of contracts is done voluntarily by the employee while sometimes a termination letter is handed to the employee by the company.

Types Of Termination Of Employment

If you think ending a contract only requires a termination letter, then you might want to find out four other ways a job could end:

1) Involuntary Termination: This type of termination occurs when the employer separates the employee from their job. For involuntary termination, there are two ways an employer can end a contract;

• With cause: Involuntary termination with cause means firing an employee for a particular reason. This may be a result of violating the company’s policies, poor performance at work or even harassing other staff members. Sometimes the employee in question is given a warning but in severe cases, immediate termination will take place without unemployment compensation.
• Notice of termination: Unlike the first stated above, the employee plays no fault in this. This type of termination of employment occurs either because the company needs to lay off some employees due to a lack of financial funds or business restructuring. Employees in such cases should be provided with unemployment benefits going forward.

2) Voluntary Termination: Voluntary termination occurs when an employee decides to quit their job. This could be a result of finding a new job, personal reasons, or a shift in their career goals. Regardless of the reason from the above, the employee in question is not eligible for unemployment compensation since it was solely their intention to quit.

3) Mutual Termination of Employment: This happens when both parties, the employer and employee consent to a termination of contract. Depending on the situation mutual termination may require obligated resignation where the employee would be paid only after resigning.

4) At-Will Employment: Employment at will does not involve an agreed contract. This means an employer can end the work at any time without reason likewise the employee is not mandated to work as well.

However, the agreement and state laws for at-will employment differ, so ensure to check with your local department of labor for more details.

Constructive Discharge vs Wrongful Termination

Constructive discharge occurs when an employee voluntarily quits their job due to a toxic work environment. If the employer creates an unbearable or unhealthy working environment, the employee could request termination of contract.

Such harsh conditions include discrimination, harassment, bullying, and an overwhelming workload. For this reason, the employee is eligible for severance pay or unemployment compensation and might forward a lawsuit.

While wrongful termination happens when an employer fires an employee unlawfully without proper notice of termination of employment. This means for any reason which is illegal under the law. For example, disregarding employment agreements, racial discrimination, or an employee’s unwillingness to partake in an illegal act. An employee in such a case can order a lawsuit against the particular employer.

The similarities are the harsh working conditions or discrimination to which the employee is subjected. Although when it comes to constructive discharge the employee decides on the termination of contract due to a toxic work environment while during wrongful termination the employer fires the employee without valid reason or cause after the employee was subjected to unlawful activities.

Steps For Cautious Termination of Employment

As earlier stated, termination of employment can come unexpectedly to an employee. So it’s best to deliver this carefully especially if the employee has no fault to play. Here are some steps to help you:

• • • Determine the specific reason for ending the job contract.
    • Ensure all termination policies are kept and adhered to.
    • Revisit and review the employee’s profile just to be sure it is the right step to take.
    • Break the news gently to the employee more so in the form of a private meeting.
    • Prepare unemployment compensation if necessary.
    • Offer a decent send off which could include feedback from both you and the employee.

Conclusion

Understanding the different types of employment termination would put you at little risk when calling off a job. This helps to avoid legal prohibition, lawsuits and protect your rights.

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