CandleFocus Glossary Editor
Termination of Employment refers to the ceasing of an employee’s job at a company. Termination can be voluntary or involuntary. A voluntary termination of employment is when a worker willingly leaves their job for whatever reason, usually because they have applied and been accepted for a different job, are relocating, or desire to pursue a different occupation or career path. An involuntary termination of employment occurs when a company experiences a downsizing, undergoes layoffs, or ceases to employ a certain worker. The worker no longer has a job with the company and is considered unemployed.
In order to ensure a smooth transition out of a job and to protect the company, the worker and the company may negotiate a severance package. A severance package is a consideration provided by the company to the worker in the event of termination, usually in the form of an amount of money. This serves to help the worker acquire a means of financial support during the period when they are no longer employed. A severance package can also include other provisions such as a gradual transition from their job, career advice, and other job benefits. The worker also may be provided with a letter or certificate of reference. Although a severance package is often offered, it is not mandatory.
Those who are unemployed through no fault of their own may be eligible to receive unemployment benefits depending on the country or state in which they reside. Generally, a person must meet certain eligibility criteria in order to be accepted for unemployment benefits. This can include having held a job for a certain length of time, having earned a certain amount of wages, or being able to prove they are actively searching for a new job.
Terminating an employment is a significant life event. It is important for employers and workers alike to know the legal ramifications of terminating a job and to understand the exact terms and agreements of any severance package. In some cases, termination of employment may be handled through an employment lawyer. Knowing the ins and outs of termination policies, severance packages, and unemployment benefits can help workers make empowered decisions about their career paths and help companies ensure that their employees are treated fairly.
In order to ensure a smooth transition out of a job and to protect the company, the worker and the company may negotiate a severance package. A severance package is a consideration provided by the company to the worker in the event of termination, usually in the form of an amount of money. This serves to help the worker acquire a means of financial support during the period when they are no longer employed. A severance package can also include other provisions such as a gradual transition from their job, career advice, and other job benefits. The worker also may be provided with a letter or certificate of reference. Although a severance package is often offered, it is not mandatory.
Those who are unemployed through no fault of their own may be eligible to receive unemployment benefits depending on the country or state in which they reside. Generally, a person must meet certain eligibility criteria in order to be accepted for unemployment benefits. This can include having held a job for a certain length of time, having earned a certain amount of wages, or being able to prove they are actively searching for a new job.
Terminating an employment is a significant life event. It is important for employers and workers alike to know the legal ramifications of terminating a job and to understand the exact terms and agreements of any severance package. In some cases, termination of employment may be handled through an employment lawyer. Knowing the ins and outs of termination policies, severance packages, and unemployment benefits can help workers make empowered decisions about their career paths and help companies ensure that their employees are treated fairly.