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Understanding Terminations

Oct 1, 2020

Understanding Layoffs, Business Closures, Shutdowns, Separation Agreements in accordance with state laws. Please keep in mind the Worker Adjustment and Retraining Notification Act as well as the Older Workers Benefit Protection Act. It is important to understand how to process a layoff, reduction in force, or closure the appropriate way.

Understanding Terminations

Voluntary = Decided by Employee; an employee submits a written or verbal notice of resignation, including intent to retire, or when an employee is absent without notice for three (3) consecutive workdays which is considered Job Abandonment and coded as Voluntary Resignation.

 

  • Resignation: An employee resigns due to compensation, job related, another career opportunity, advancement, relocation, or personal reasons
  • Retirement: When an employee decides to retire; age specifications

 

Involuntary = Decided by Employer; an employee is released from their job duties by the Employer based on a variety of reasons, with or without cause.

With Cause

  • Layoffs, Business Closures, Shutdowns
  • Discharge or Termination due to Performance, Misconduct, Violations by law or policy
    • Behavioral yet not before counseling and warning to correct
    • Unlawfulness; violation of policies or laws
  • Mutual Separation: Terms agreed upon by Employer and Employee

 

Without Cause

  • Medical: These are unavoidable terminations due to medical reasons / no accommodations
  • Death: This is an unavoidable termination due to death of an employee
  • End of Assignment: An assignment such as project based, internship, or contracted employee is completed or ended

 

Discretionary, based on certain factors should be reviewed such as length of service, level of responsibility, reason for separation, etc. however no employee is entitled to severance pay upon termination.

 

Understanding Layoffs, Business Closures, Shutdowns, Separation Agreements in accordance with state laws. Please keep in mind the Worker Adjustment and Retraining Notification Act as well as the Older Workers Benefit Protection Act. It is important to understand how to process a layoff, reduction in force, or closure the appropriate way.

 

Final Pay: An employee who resigns or is discharged is paid through their last day worked or resignation period. Vacation or PTO Balances should be paid out in accordance with State laws. In the case of an employee’s death, the final pay will be paid to the deceased employee’s estate or as otherwise required by state law.

 

Health and dental insurance for terminated employees will terminate the last day of the month in which the termination becomes effective, unless otherwise noted in a written separation agreement. Short- and long-term disability and life insurance will be terminated on the date of termination.

 

Layoffs, Business Closures, Shutdowns, Separation Agreements will be paid per the terms of the agreement and in accordance with state laws.