Termination of employment

From ArticleWorld

Termination of employment can occur in a number of ways, the most common being lay offs and involuntary termination.

Terminology

• Involuntary termination is the most drastic form of termination and is also known as firing, sacking, shit-canning or canning. It occurs for many reasons, namely: work performance that is sub-par, frequent absence, insubordination or the inability to interact with coworkers, inappropriate behavior, illegal activities and more. It is often the last step of several in which the employee had previously been warned.

• De facto firings are considered a voluntary termination and help the company avoid paying increased unemployment costs.

• Discriminatory, or retaliatory, termination occurs due to an employee’s physical or mental disability or his or her race, gender or sexual orientation. A retaliatory termination occurs when the manager or supervisor wants to act against the employee. These types of termination are considered a violation of federal law.

• Forced resignations occur in order to avoid the risks and costs of firing an employee. This allows an employee to make a more graceful exit and is common among people in high-profile positions.

• Changes of conditions occur when a company degrades an employee’s working conditions in hopes of forcing him or her to leave on his or her own accord.

• One can also be laid off or downsized, which occurs not due to performance but because of a company’s economic needs. An employee who is laid off may later be hired by the same company if the situation changes.

Depending on the circumstances, some companies will offer an employee a severance package or unemployment benefits.

Risks

Firing an employee is considered a risky and expensive practice. Some form of extensive documentation is required in case the employee brings about a wrongful termination suit). Fired employees often sue their former employers, offer trade secrets or expose any illegal doings within the company.

A company’s unemployment costs (the benefits they are required to pay to terminated employees) increase according to the number of workers who are laid off or fired.