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Home > Termination of employment


An individual can face termination of employment, or job loss, for one of many reasons.

The most drastic termination of employment is "firing" or "sacking", known in technical terms as "involuntary termination". (It can also, although not as often, be reffered to as "dropping", "trimming" or "shedding".) To be fired or sacked, as opposed to being laid off, is generally thought to be dishonorable and a sign of failure. However, in today's society, it is also highly common. A large proportion of Americans will be fired at some time in their life, and not always because of any moral failing or lack of a work ethic.

Firing an employee is expensive and risky in that firings require extensive documentation (in the event of a wrongful-termination lawsuit), and because fired employees may sue their former employers, disclose trade secrets to competitors, or expose illegal practices. Finally, in the United States, unemployment benefits are financed by companies, and a firm's unemployment costs increase with each worker laid off or fired. Therefore, more common are de facto firings, which are classified as "voluntary" termination. An official notice of firing is sometimes referred to as a Pink Slip.

1 Types of termination

1.1 Forced resignations

To allow the dismissed employee to "save face", the employer requests the employee to resign "voluntarily" from his or her position. If the employee chooses not to resign, the processes necessary to fire him or her will be pursued, and the employee will usually be fired. Therefore, employees in this position often resign to exit at least somewhat gracefully.

When major executives of major companies do this, it is often ubiquitous for them to say to the media that it is "to spend more time with their familyThis article is about the domestic group. For other uses, see Family (disambiguation). Ouagadougou, Burkina Faso in 1997 A family is a domestic group of people, or a number of domestic groups linked through descent (demonstrated or stipulated) from a comm", though this is often not the case. This euphemismA euphemism is a word or phrase which people use in place of terms which they consider to be more disagreeable or offensive to themselves and/or to their audience. The linguistic taboo may be an unspeakable name for a deity, such as Persephone, Hecate, Ne is also common in British politics, when a government minister is forced out of office.

1.2 Changes of conditions

Firms that wish for an employee to exit on his or her own accord, but do not wish to pursue firing or forced resignation, 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 shiftShift may refer to a movement the shift key on a keyboard, harking back to typewriter days the analogue for literal strings, for example barrel shifter the analogue in mathematics, for example a shift operator derived meanings of change, such as red shift, given too few hours, demote d, or relegated to a menial taskIn common language, a task is part of a set of actions which accomplish a job; the sense is that 'useful work is getting done'. Task analysis is the analysis or a breakdown of exactly how a task is accomplished, such as what sub-tasks are required. This i or small cubicle instead of a more comfort able office. Other forms of manipulation may be used, such as being unfairly hostile to the employee, and punishing him or her for things that are deliberately overlooked with other employees.

Such tactics may amount to constructive dismissal, which is illegal in some jurisdictions.

1.3 Layoffs and furloughs

Finally, termination of employment can happen as a result of layoffs, also known as "downsizing" or "redundancy", which are not firings. A laid-off employees' job is terminated and not re-filled, because the company wishes to reduce its size or operations, not for performance-related reasons. In rare cases, laid-off employees are re-hired by their respective companies, though by this time they have usually found new jobs.

See also: furlough





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