What is Employee Termination Policy?
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Employee Termination or Employee Separation is an employee's way of getting departed from their employment and putting an end to the employee's period with a company or business. Employee termination may be done voluntarily by the employee himself or it may be decided by the employer based on the employee's performance and contribution to the organization. Employee termination can also happen on the grounds of a morality check, layoff, or dismissal by the employer.
At the end of the contract that has been offered by the employer, an employee may find himself terminated if the contract doesn't get a renewal of the work period. Usually, employees or employers give each other one to three months notice period or payment of salary in exchange for ending the contract or work period.
Employee resignation and employee termination are two different terms. Resigning usually happens in the way of an employee saying that he wants to quit his services to the company. However, the employee's resignation must happen on a good note so that he can get a reference letter or recommendation letter that can be used to get future work. There are different types of work termination such as voluntary termination, wrongful termination, end of temporary work duration, and involuntary termination.
If you are an employer who is planning to terminate your employee's contract for various reasons, you need to be firstly humane and have an empathetic understanding towards your employee. You need to provide your employees a helping hand in finding employment opportunities that fit their work experience and expectations before telling them goodbye to your company. Effective leaders or employers are the ones who release employees from the work opportunities at their organization on a good note without hampering their future growth.
Firing an employee is one of the worst things that an employer or leader can do. It not only affects the business growth to some extent if the employee has been a good performer but also spoils relations with other team members. That is the reason firing should be the last resort and made use only when the worst situation occurs like a company going under huge financial losses, the company going to be taken over by another firm that doesn't need your staff, etc. However, ensure that the firing or termination of an employee is fair and transparent. You need to mention the accurate reasons and document the same in order to put your employee's careers on hold by removing them from your organization.
You can even convey the reasons for the employee's termination by writing a mail or letter to them that makes them understand how to improve on their work areas or make some behavioral changes that will get effective business results. You can launch their career improvement plan wherein they get enough exposure to train and develop their skills and provide you with positive work results. However, if all the things fail and you are left with only an option to terminate the employee's contract, do not be harsh but be polite and part ways amicably.