Legal Definitions - Termination

Termination refers to the ending of an employment relationship that is initiated by the employer or occurs due to circumstances beyond the employee's voluntary decision to leave their job.

Here are some examples illustrating different scenarios of termination:

• Example 1: Performance-Based Dismissal

  A software engineer, Maria, consistently fails to meet her project deadlines despite receiving multiple warnings and opportunities for improvement. After a final performance review, her company decides to end her employment.

  This illustrates termination because Maria's employment ended due to the employer's decision based on her work performance, not because she chose to resign.

• Example 2: Misconduct-Related Dismissal

  David, a retail store manager, is discovered to have repeatedly violated company policy by giving unauthorized discounts to friends and family. Following an internal investigation, the company immediately fires him for gross misconduct.

  This is an example of termination because David's employment was ended by the employer due to his actions, which constituted a breach of company rules, rather than his own choice to leave.

• Example 3: Position Elimination Due to Restructuring

  A large manufacturing company decides to streamline its operations by consolidating several regional administrative offices into a single central hub. As a result, the entire accounting department at one of the regional offices, including Sarah, the lead accountant, has their positions eliminated.

  This demonstrates termination because Sarah's employment ended due to a business decision by her employer to restructure and eliminate her role, not because she voluntarily resigned.