Involuntary termination occurs when a company (as opposed to an employee) initiates the termination of an employment relationship. It is often the result of cost-cutting measures such as downsizing or poor work performance or inappropriate workplace behavior by the employee. Below we will dive deeper into the reasons your company might use involuntary termination and cover some of the legal considerations and other impacts associated with that decision.
Reasons for Involuntary Termination
Involuntary termination happens for many reasons, and the business usually determines these factors. Below are some of the most common motives for terminating employees.
Impacts of Involuntary Termination
When you terminate someone, that employee may be entitled to certain disclosures and benefits they would not be entitled to if they quit voluntarily. There are also things you need to prepare for to keep your employee engagement high.
Voluntary vs Involuntary Termination
A voluntary termination occurs when an employee leaves your company by their choice, whereas an involuntary termination occurs when you decide to terminate an employee.
Type of Termination
Employee quits to go work at another company
Employee on a performance improvement plan learns they are not meeting minimum job standards and quits
Employer unilaterally determines to lay off employee
Employer terminates employee for inappropriate workplace behavior
Looking for something more? Read our article on employee management tips and tools.
Countless reasons why companies terminate employees exist. Most states and cities do not require an employer to give an employee a reason for their termination because of the employment-at-will doctrine. However, some states and cities are passing laws requiring employers to provide employees with a reason for their termination, so make sure your company follows proper practices. Managing involuntary terminations effectively and legally is crucial to protecting your small business and keeping your staff engaged.