Voluntary Termination
In a voluntary termination, an employee resigns from his or her job. Resignations occur for a variety of reasons that may include: a new job, a spouse or partner’s acceptance of a new job in a distant location, returning to school, an opportunity to take on a managerial role, and retirement. Voluntary termination can also happen when an employee stops showing up for work and doesn’t notify management. With valued employees, employers expend efforts on employee retention in their aim to limit preventable turnover. This is a significant objective of employers as the cost of employee turnover is expensive.
Involuntary Termination
In an involuntary termination, an employer fires the employee or removes the employee from his or her job. Involuntary termination is usually the result of an employer’s dissatisfaction with an employee’s performance or an economic downturn. Involuntary termination can also occur in the form of a layoff if the business is unprofitable or overstaffed. Reasons for involuntary termination of an employee range from poor performance to attendance problems to violent behavior. Occasionally, an employee is a poor fit for the job’s responsibilities or fails to mesh with the company’s culture. Involuntary termination, such as a layoff, can occur because an employer lacks the financial resources to continue an employment relationship. Other events that can trigger an involuntary termination may include mergers and acquisitions, a company relocation, and job redundancy. Used appropriately, the PIP is the employer’s last-ditch attempt to communicate the needed performance improvements to the employee. But the PIP, and any escalating disciplinary measures, also provide documentation that demonstrates that the employer made an effort to salvage the employment relationship.
Additional Factors in Employment Termination
Several additional factors are relevant to involuntary employment termination, including at-will employment and termination for cause.
Employment at Will
In states that recognize employment at will, an employee may be fired for any reason, at any time, with or without cause. Employers do not even have to give a reason for why the employee is terminated from his or her job.However, employers are advised to keep documentation for up to a year after termination in the event the employee files a lawsuit.
Termination for Cause
In other instances of employment termination, the employment is terminated for a reason which is given to the employee and stated in the termination letter. Termination for a cause can occur in such situations as:
Violation of the company code of conduct or ethics policy Workplace theft or fraud Intoxicated or under the influence of while at work Patterns of incompetence Harassment of other employees or customers Excessive absences and tardiness
