Here are some basic definitions used in terminations. These definitions may be vary somewhat than those contained in federal or state laws and regulations since they are not stated in legal terms.
Termination
Employees may terminate or separate from your company under several scenarios,
voluntarily or involuntarily. Whether the conclusion of the employment relationship is
the employer's or the employee's choice is sometimes not relevant. What is important is that
all parties are treated fairly and with mutual respect.
Resignation
An employee resigns from the company based on his or her own decision. This is also
referred to as voluntary termination. Even though an employee resigns of their own free will,
you should still have a termination meeting and an exit interview. It is also a good idea to
ask for a written notification of resignation. This is an accepted business practice and
provides written documentation for your files.
There are a number of reasons the termination may be involuntary:
Poor performance
An employee has consistently exhibited poor performance compared to performance criteria. When
terminating for poor performance, be certain you have documented that the employee had been
advised of performance deficiencies, given a reasonable amount of time to correct the
deficiencies, and documented that the employee has failed to make the necessary corrections.
Termination for Cause
An employee's conduct is in serious violation of company policy or the employee has acted in a
manner that significantly jeopardizes company or fellow employees. When terminating for cause,
be certain that the employee's action is thoroughly documented.
Layoff
A temporary interruption of the employment relationship occurs because of a lack of work. If
the termination is the result of a reduction in workforce (layoff), verify that the
employee's selection has been fair and legal - and that it has been documented.
