The Termination/Separation of Employment Policy outlines the procedures and conditions under which an employee’s association with the company ends. It addresses both voluntary and involuntary dismissals, detailing reasons, processes, and legal considerations to ensure fairness and compliance during the separation process.
This Termination/Separation of Employment Policy template is ready to be tailored to your company’s needs and should be considered a starting point for setting up your employment policies. A termination/separation of employment policy may also be referred to as an employee termination policy or termination of employment policy.
This termination/separation of employment policy should include:
Our Termination/Separation of Employment policy refers to the event that an employee ceases to be part of the company’s workforce. It is beneficial for all parties that the employment separation process is as clear as possible so misunderstandings and distrust between the employee and the company can be avoided. The company is bound to handle any cases of termination of employment as dictated by law with discretion, professionalism and official documentation.
This termination/separation of employment policy applies to all prospective or current employees of the company in regards to possible separation of employment.
The company will observe all legal dictations referring to termination/separation of employment and will avoid “implied contracts” and unnecessary terminations.
Termination of employment happens when the contract of an employee is discontinued due to their or the company’s actions.
The dismissal of an employee from their job duties may be categorized as voluntary or involuntary.
Voluntary dismissal may include the following:
Involuntary dismissal may include the following:
Discharge for cause refers to immediate termination of employment due to an employee’s misconduct. Any kind of disciplinary action or progressive discipline that results in termination may be considered “for cause”. Other wrongful behaviors or actions that result in immediate dismissal are also considered “for cause”. Examples of such termination of employees include circumstances where an employee:
The list is not exhaustive therefore, discharge for cause remains at our company’s discretion. It must however always reflect an unacceptable behavior or action that violates legal or company guidelines and may result in financial and non-financial damages for the company, other employees or society.
Discharge without cause can occur when the company decides that the services of an employee are no longer needed. In general, this does not refer to an employee’s conduct. Reasons for discharge without cause may be layoffs, rearrangement of a department or redefining of a position. In cases an employee must be terminated without cause, the company is obliged to give notice a specified amount of time prior to the date of termination depending on time of service, age of employee or position. If the employee has to stop working before the date of termination, the company will still provide compensation for the time remaining, specified as “pay in lieu of notice”.
The company may compensate the terminated employee for accrued vacation time when appropriate. Severance pay may apply to cases of discharge without cause but not discharge for cause.
The company is bound by the law to refrain from wrongful dismissals of employees. Wrongful dismissal may occur in cases when:
The company expects all employees with the right of terminating subordinates to strictly refrain from discharging someone without adequate reason or without giving notice. Such an occurrence may be damaging for the company’s respectability and may result in disciplinary action. Discharge on grounds of discrimination or filed health and safety complaints is unlawful termination prohibited by legislation.
Constructive dismissal refers to an employee that has been forced to resign due to an employer’s intentional or unintentional unlawful or hostile behavior (e.g. breach of contract). It will not be practiced by any means by the company which is committed to maintain a relationship of honesty and fairness between itself and employees.
In cases of resignation, the employee must submit an official written resignation letter to the immediate supervisor. A notice is expected by the employee consistent with the minimum notice requirement, so the company can arrange alternatives for handling the remaining workload of the position. The resignation letter must be copied and submitted to the Human Resources department.
In cases of involuntary dismissal, the supervisor must submit an employee termination document to the human resources department at the date of separation or before that. Discharge for cause justifies immediate suspension until the necessary documentation for termination has been gathered. In some instances, a termination meeting with the employee, supervisor and a human resources officer may be scheduled.
In cases of discharge without cause, the employer must officially notify the employee of the termination a specified amount of time in advance. When severance pay is appropriate it will be officially stated in writing.
At all times, proper employee records will be kept containing all relevant documentation. A lawyer will be consulted prior to termination so the company can ensure the legality of its actions.
| Disclaimer: This policy template is meant to provide general guidelines and should be used as a reference. It may not take into account all relevant local, state or federal laws and is not a legal document. Neither the author nor Workable will assume any legal liability that may arise from the use of this policy. |
For additional termination templates, see our Sample Termination Letter for Employees.
What is an example of a termination/separation of employment policy? The policy provides a comprehensive framework detailing the procedures and specific reasons for ending an employee's association with a company. It encompasses both voluntary resignations and involuntary dismissals, ensuring a structured and transparent approach to the separation process. Why is a termination/separation of employment policy important? Such a policy is crucial as it offers clarity and structure to the separation process. It ensures that both the company and the employee are protected legally, and it upholds the principles of fairness, transparency, and respect during potentially challenging employee departures. What should a termination/separation of employment policy include? A well-structured policy should clearly define the different types of dismissals, whether voluntary or involuntary. It should outline the specific procedures and documentation required for each scenario, and importantly, it should address all legal considerations to prevent wrongful dismissals. What is constructive dismissal? Constructive dismissal refers to situations where an employee feels compelled to resign due to the employer's actions or behavior, which may be unlawful or create a hostile work environment. It's a form of involuntary resignation where the employer's conduct forces the employee's decision. How should resignations be handled? When an employee decides to resign, they should submit a formal written resignation letter to their immediate supervisor. This letter should be copied to the Human Resources department. Adhering to the minimum notice requirement ensures a smooth transition and minimizes disruptions.
