what is termination of employee

What’s employee termination?

Learn about Employee termination with Philadelphia

Definition: Employee Termination

When an employee’s employment with an employer ends, it is called employee termination. This can happen for several causes and via numerous methods.

Movie Case Study


The scene shows Andrew Backket’s boss Charles Wheeler. He is being questioned on why Andrew was fired from the company, where he worked as a senior associate.Charles explains that even after a lot of investment in Andrew, he was incompetent and couldn’t deliver.

However, this wasn’t true, Andrew Beckket (played by Tom Hanks) sued his former employer because he believed they fired him as he was gay and had AIDS. The company set him up to make him look incompetent and fired him later.

Types of terminations

Voluntary termination

It occurs when an employee voluntarily leaves their position. This can be the result of retiring, quitting, or accepting a different work offer.

Involuntary termination

The termination of employment by the employer is known as an involuntary termination. Typical causes include:


Usually brought on by downsizing, restructuring, or economic factors; they are not always connected to an employee’s performance.


Usually brought on by poor performance, misbehavior, policy violations, or other grounds for termination,.

Mutual Consensus:

Occasionally, there is a consensus between the employer and the employee over the appropriate course of action for ending the employment relationship.

Important Factors in Employee Termination:

Time of Notice:

The duty to give notice before to termination may apply to either side, depending on the terms of the employment contract or business policy.

Severance money:

Employers may provide laid-off or fired workers with severance money. The conditions of severance pay differ according to employment agreements and corporate policy.

Exit Interview:

Organizations frequently hold exit interviews to learn more about the reasons behind a departing employee’s decision, as well as to acquire information on working conditions and possible areas for development.

In order to prevent wrongful termination claims, terminations must adhere to labor laws and regulations. This entails abiding by anti-discrimination legislation, fulfilling contractual duties, and delivering final payouts on schedule.


In order to stay out of trouble with the law and keep up-to-date employment records, employers usually keep a record of the reasons for termination and the steps taken.

Effects of Termination:

Termination can significantly impact employees’ emotional health, professional advancement, and financial security, or all of them can be impacted by losing their jobs.

If a termination is not handled appropriately, it may hurt team morale, result in expenses for severance and hiring, and even give rise to legal issues.

Firing an employee is a big part of human resources management and needs to be done carefully while abiding by the law and ethical principles.

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