Employee termination, also known as employee suspension, is done when an employee is not fulfilling his responsibilities and hence, is fired or dismissed from the job by the employer. But, sometimes if the employee on various grounds decides to leave his present company can also be labeled as part of employee termination.
Employee termination is an extreme step taken by employers as it carries a lot of stigma. Generally, if a person has been terminated from their job, it becomes challenging for them to find another job.
Now that you know the employee termination definition, dive in and understand different types of employee termination, employee termination policy, and much more.
Types of Employee Termination
Here are the four types of employee suspension you should know about:
- Voluntary termination: The termination is brought by the employee himself where he/she may not enjoy the job anymore, is not getting along with their employers or colleagues, going for higher education, spouse has found a better job in a different part of the country, lack of growth/upskilling opportunities and so on.
- Involuntary termination: Employers decide to expel their employees on the grounds of a business slowdown, cost-cutting, weak employee performance, not being capable of the job anymore, and so on.
- Employee At Will: Employers have the right to suspend the employee anytime for any reason. That means employees will have no other option but to leave the company. In such cases, employers ensure to document the reason for termination to show it as proof in the future (if required).
- Mutual Termination: Both employers, as well as employees, mutually agree to the termination. Since both parties are on the same, this termination is considered the easiest and hassle-free out of all.
After the outbreak of Coronavirus, 49 percent of organizations considered layoffs and more than one-third froze new hires.
Common Reasons For Employee Termination
The reasons for employee termination differ from company to company but we have listed some common reasons below.
From Employer’s Viewpoint:
- Low Performance: Employees are expected to be the pillar of a business. When employers see an employee performing poorly for a long period of time (even after so many warnings), they decide to suspend them.
- Violation of Company Rules: Every employee is asked to read and accept the rules of the company on his or her joining day. Violating them can not just lead to termination but also several legal consequences.
- Harassment: Harassment can be sexual, physical, mental, or emotional.
- Leaking Confidential Information: Employees who leak vital data to competition are asked to leave the company right away. This rule applies to almost every organization across India.
From Employee’s Viewpoint
- Better Job Option: Most employees leave the organization when they find a better option elsewhere.
- No Growth: From lack of upskilling opportunities to no promotion/increment, employees lose their interest due to several reasons.
- Bad Relationships with Colleagues: Employees may find it difficult to work with a particular individual/team.
- Personal Problems: The employee may have to shift to any other state/country or prepare for an important examination.
According to a survey by Microsoft, 41 percent of working individuals globally thought about handing their notice during the COVID pandemic.
Step-by-Step Guide For Employee Termination
Here are the steps that should be taken while terminating an employee:
- Take a Final Decision: If no warning has been given, employers should take a step ahead and give a warning before deciding to terminate the employee. If low performance is the reason, try to put him/her in a PIP for a month. Choose termination only when nothing works.
- Tell Them The Reason: Employers should have the courtesy to inform the employee that s/he is being suspended. No matter what the reason is, employers should be considerate/professional enough to tell the employee in person or via mail.
- Do the Paperwork: After informing him/her, make sure to complete the paperwork. Employee termination policy must be given. Get his/her signatures on the agreement as consent for the policy.
- Clear the Dues: Before saying the final goodbye, employees should clear every due of the employee. Employers who take termination as an opportunity to save money by not giving dues often tarnish their own name in the market.
- Send-off Properly: Employers should give a good send-off to the terminated employees. Just wishing them luck in their future endeavors is also a great gesture. If possible, employers should also take his/her exit interview.
To sum it all, termination is the scariest word for every working individual out there. Not to forget, even employers hate this process equally. Avoiding a termination is not as challenging as it seems. Employees just need to be their best selves, value the company’s rules, and respect their term members. Likewise, employers should try to offer the best working conditions and learning/growth opportunities to their employees.