Reasons for a Termination of Employment

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    Resignation

    • An employee can resign, or terminate his own employment, for a number of reasons. For example, he might be unhappy with his job, he might have received a better offer elsewhere, he might be moving or he might have other personal reasons for leaving. If the employee resigns, the employer should have an exit interview to determine the cause, and the employer also should ask for the resignation in writing and retain that documentation.

    Layoff

    • If there is a lack of work, if the company is undergoing financial problems or if a particular job no longer is needed, the company might lay off employees. The employer must ensure the layoff is fair and legal. For instance, under the Worker Adjustment and Retraining Notification (WARN) Act, employers must give employees advance notice of plant closings and mass layoffs. This gives the employees and their families time to adjust to the employment loss and to seek alternative support, such as unemployment benefits.

    Merger/Buyout

    • A merger or a buyout usually requires changes within the organizational structure, which might affect employment. Although the employer is not legally required to do so, some employers offer a severance package to employees terminated under these circumstances.

    For Cause

    • The employer can terminate the employee if she violates the company policy or behaves in a manner that jeopardizes the company or her coworkers. For instance, if she falsifies her time card or physically attacks a coworker, the employer can terminate her for cause. The employer should thoroughly document the employee's behavior when terminating for cause.

    Poor Performance

    • The employer can terminate the employee if he consistently fails to meet the standards associated with his position. Before terminating the employee, the employer should advise him of his performance deficiencies and give him a reasonable amount of time to correct them. The employer also should document the steps taken before the termination occurred.

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