Termination

Terminations can occur for a range of reasons, both voluntary and involuntary. The type of termination, however, determines the employee’s future relationship with the employer (or lack of one).

Being Fired

 

Being fired is an involuntary form of termination and is usually thought to be the employee’s fault and considered a sign of failure. It can hinder the job seeker’s chances of finding new employment, particularly if the person has been fired from earlier jobs. Prospective employees don’t always include jobs they were fired from on their résumés. As a result, employers may view unexplained gaps in employment or an applicant’s refusal to provide references from previous employers as red flags, or reasons to be cautious.

Being Laid-Off

A less severe form of involuntary termination is often referred to as a layoff. Usually a layoff isn’t strictly related to personal performance but is instead the result of economic cycles or the company’s need to restructure itself, the firm itself going out of business, or a change in the operations of the employer.

Layoffs may occur as a result of downsizing (a reduction in the size of the workforce) or redundancy (eliminating positions that aren’t needed). Such layoffs are not technically classified as firings; laid-off employees’ positions are terminated and not refilled, because either the company wishes to reduce its size or operations or otherwise lacks the economic stability or operational need to retain the position. In some cases, laid-off employees may be offered back their old positions with the firm when the economic outlook improves, though by that time the former employee may have already moved on to a new job.

Attrition

Attrition is the departure of employees from the organization for any reason (voluntary or involuntary) including resignation, termination, death or retirement. Some companies resort to attrition as a means of reducing their workforce. Under such a plan, the company doesn’t force anyone to leave, but those who depart voluntarily are not replaced. Sometimes companies offer an incentive for voluntarily leaving. This happens when the employer give workers the option to resign in exchange for a voluntary severance package which usually includes a monetary payment.

Mutual Agreement Termination

Some terminations occur as a result of mutual agreement between the employer and employee. It may be a matter of debate as to whether such terminations are really mutual. In many of these cases, the employer wants the employee to quit but decides to offer a mutual termination agreement in order to soften the firing (as in a forced resignation). There are also times when a termination date is agreed upon in an employment contract before the employment starts.

Forced Resignation

Firms that want an employee to leave of their own accord, but don’t wish to pursue firing, may degrade the employee’s working conditions, hoping that they will leave “voluntarily.” The employee may be moved to a different geographical location, assigned to an undesirable shift, given too few hours if part time, demoted, or assigned to work in uncomfortable conditions. Companies may use other forms of manipulation to force an employee’s resignation, often so they won’t have to document a legitimate reason for termination in jurisdictions without at-will employment. At-will employment is a term used to describe employment relationships where an employee can be dismissed by an employer without warning and for any (or no) reason and without having to establish a reason for termination such as poor performance or insubordination. Likewise, the employee can leave without notice or reason. With a few exceptions, employees who leave voluntarily usually cannot collect unemployment benefits.

However, employers should think carefully before using such tactics. The actions taken by the employer may be considered constructive discharge because the employer creates a hostile or intolerable work environment. Constructive discharge is illegal and the employer risks a lawsuit by taking actions to force someone to quit.

Rehire Following Termination

Depending on the circumstances, one whose employment has been terminated may or may not be able to be rehired by the same employer. If the decision to terminate was the employee’s, the willingness of the employer to rehire is often contingent upon the relationship the employee had with the employer, the amount of notice given by the employee prior to departure, and the needs of the employer.

In some cases, when an employee departed on good terms, they may be given special priority by the employer when seeking rehire. An employee may be terminated without prejudice, meaning that the former employee may be rehired readily for the same or a similar job in the future. This is usually true in the case of a layoff. Conversely, a person can be terminated with prejudice, meaning that an employer will not rehire the former employee to a similar job in the future. This judgment can be made for a number of reasons including incompetence, misconduct, insubordination, or attitude.