Employing an individual in an organization is a difficult and cumbersome process. A lot of money and effort is spent to recruit a person with the matching skills and qualifications needed for a particular job description. As soon as the employee is made part of the team, he is given an agreement to sign that contains all the terms and conditions of doing the job in that organization. These rules and regulations may include the following elements:
- Job description of the employee along with personal details
- Salary Package and any perks
- Dress code and discipline issues
- Date of joining and time of contract
- Terminations rules.
Among the important clauses, the most important element is about employment termination.
What is an employment termination form?
An employment termination form is an official document used by an employer to state the reason for terminating an employment contract with an employee. This form serves as evidence of termination for both the employer and employee and can be used for legal purposes to ensure that the employee has been terminated for valid reasons.
Employment termination can be voluntary or involuntary, i.e., the employee may be willing to terminate the contract or not. Voluntary termination occurs when an employee wants to end their job for better opportunities and join another company. Following involuntary termination, termination forms protect employers by stating the valid reason for termination as compared to wrongful acts or allegations.
Possible reasons to design this form?
The employment termination form is devised for the following crucial purposes:
- Legal requirements: employers are bound by law to provide a reasonable justification for terminating any employee’s contract without a valid reason. Employees can claim their unjustified termination in court; therefore, all official documentation must be prepared beforehand to tackle these unforeseen circumstances.
- Job opportunities: employees seeking job opportunities at other companies need to submit a termination form from their previous place of employment.
- Administrative: The HR department of every business keeps tabs on all aspects of the employment of every employee; therefore, a termination form is crucial for closing the case of an exiting employee to finish records.
Letter Sample File: 189 KB
Some parts or sections of the form
Key elements of an employment termination form are given as follows:
- Employee’s information: name, date of joining, employee number, job description, timings, rank, and other details of the employee are mentioned in detail to ensure identification.
- Termination: The end date of employment along with details of voluntary or involuntary termination are provided. Moreover, in some cases, employees are responsible for working two or more months after the notice of termination to give the employer time to find a replacement.
- Reasons: reasons for termination, i.e., inability to handle work, insubordination, failure to understand the basics, etc., are mentioned to avoid legal cases.
- Final comments: employees are responsible for leaving behind all the items that were provided by the company for carrying out work. These items may include laptops, motor vehicles, stationery, and other items of official worth. Moreover, all essential documents regarding clients and projects should be handed over to the assigned administrative personnel.
- Compensation: matters regarding salary and endowment funds are discussed to ensure that the rights of employees are intact and justice has been served.
- Signature: Employment termination forms are then signed by both the employer and the employee, which indicates the consent of both parties to the above-mentioned terms and conditions.
The significance of using the form
The employment termination form has the following benefits for both parties:
- It ensures that a particular employee has been terminated, and the company will not be responsible for his actions anymore.
- It helps employees understand the subject and seek more opportunities at different businesses.
- The employment termination form protects employers from being dragged into the middle of lawsuits by being unfair to their employees and it supports employees in claiming their worth at work, i.e. they are terminated on solid grounds, the notice period between the first warning and termination was adequate, etc.
As it was said earlier, an employment termination can be both voluntary and involuntary, depending on the employee and organizational relationship. In both cases, it is a formal process that requires standard operating procedures to be adhered to. Any individual who wishes to get his employment terminated from the organization must fill out the employment termination form and submit it to the designated authorities for any required action.
Termination of an employee may include some emotional and legal consequences. So to minimize any adverse effects of the termination process, the situation should be dealt with very carefully and diligently. The employment termination form should be a comprehensively written document that should contain all the relevant details along with the reason for leaving the organization and terminating the employment contract.
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