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Concept Version 8
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Terminations

Terminations occur in a variety of ways, both voluntary and involuntary, and determine the employee's future relationship with the employer.

Learning Objective

  • Explain the various methods of termination of one's work


Key Points

    • Being fired is generally thought of as the employee's fault, and therefore is mostly considered dishonorable and a sign of failure. Being laid off is a less severe form of involuntary termination because it is most often caused by economic cycles or the company's need to restructure itself.
    • Firms that wish for an employee to exit on his or her own accord but do not wish to pursue firing, may degrade the employee's working conditions, hoping that he or she will leave "voluntarily. " This type of forced resignation is considered illegal in certain areas.
    • Whether a person's ability to get a new job is negatively impacted by the termination or the person has the possibility to return to the former company in the future depends on the nature of the termination.

Term

  • Dismissal

    Dismissal is where the employer chooses to require the employee to leave, generally for a reason which is the fault of the employee. The most common colloquial term for dismissal in America is "getting fired" whereas in Britain the term "getting the sack" is used.


Example

    • Rehire post-termination: Public school teachers in New York who are laid off are placed on a preferred eligible list for employment in the school district where they were laid off for seven years. If a teacher who was laid off applies to fill a job opening, he or she is given priority over other applicants.

Full Text

Terminations can occur in a variety of methods, both voluntary and involuntary. The type of termination will determine the employee's future relationship (or lack of) with the employer.

Being Fired

To be fired is generally thought of to be the employee's fault, and therefore is considered in most cases to be dishonorable and a sign of failure. Often, it may hinder the new job seeker's chances of finding new employment, particularly if he or she has been fired from earlier jobs. Job seekers sometimes do not mention jobs which they were fired from on their résumés; accordingly, unexplained gaps in employment, and refusal to contact previous employers are often regarded as "red flags. "

Being Laid-Off

A less severe form of involuntary termination is often referred to as a layoff. A layoff is usually not strictly related to personal performance, but instead due to economic cycles or the company's need to restructure itself, the firm itself going out of business, or a change in the function of the employer. In a postmodern risk economy, such as that of the United States, a large proportion of workers may be laid off at some time in their life, and often for reasons unrelated to performance or ethics.

Often, layoffs occur as a result of "downsizing", "reduction in force", or "redundancy. " These 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 to retain the position. In some cases, a laid-off employee may eventually be offered their old position again by his or her respective company, though by this time he or she may have found a new job.

Attrition

Some companies resort to attrition as a means to reduce their workforce. Under such a plan, no employees are forced to leave their jobs. However, those who do depart voluntarily are not replaced. Additionally, employees are given the option to resign in exchange for a fixed amount of money, frequently a few years of their salary. Such plans have been carried out by the United States Federal Government under President Bill Clinton during the 1990s, and by the Ford Motor Company in 2005. However, "layoff" may be specifically addressed and defined differently in the articles of a contract in the case of unionized work.

Mutual Agreement Termination

Some terminations occur as a result of mutual agreement between the employer and employee. When this happens, it is sometimes debatable if the termination was truly mutual. In many of these cases, it was originally the employer's wish for the employee to depart, but the employer offered the mutual termination agreement in order to soften the firing (as in a forced resignation). But there are also times when a termination date is agreed upon before the employment starts in an employment contract.

Forced Resignation

Firms that wish for an employee to exit on his or her own accord but do not wish to pursue firing, may degrade the employee's working conditions, hoping that he or she 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. Other forms of manipulation may be used and often these tactics are done so that the employer won't have to fill out termination papers in jurisdictions without at-will employment. In addition, with a few exceptions, employees who voluntarily leave generally cannot collect unemployment benefits. Such tactics may amount to constructive dismissal, which is illegal in some jurisdictions.

Gen. David H. Petraeus Retires August 2011

Most military or armed forces personnel are subject to a type of forced resignation. Retirement age for military personnel is between 55 to 65, no matter their level of performance.

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, he or she may be given special priority by the employer when seeking rehire. An employee may be terminated without prejudice, meaning that the fired 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 can be for many reasons, including: incompetence, misconduct, insubordination or "attitude. "

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