The average employee has 10 jobs by the time they reach age 42. Job termination can occur for three main reasons. Understand the three types of employee termination as you evaluate your career.
Voluntary Termination
- Find a new job
- Get married
- Move away from the area
- Go back to school
- Switch careers
- Retire
Typically, you can choose to leave your job for any reason at any time. This voluntary termination occurs when you resign from your job.
You can also resign because of personnel or professional reasons. Maybe you don’t get along with a boss or co-worker, experience bullying, or don’t care for changes in your job responsibilities.
Involuntary Termination
- Your employer is dissatisfied with your performance
- Slow economic times force downsizing
- The company is purchased by another organization or moves headquarters
- The company is overstaffed
- You do not mesh with the company culture
- The job responsibilities are too advanced
You could lose your job if your employer decides to fire or remove you from your job. You always have the right to know why you are being involuntarily terminated unless you are an at-will employee; in that case, your employer can generally end employment for any reason allowed by law.
Your supervisor may provide coaching or a Performance Improvement Plan (PIP) that outlines the improvements you need to make, documents your response, and shows the employer attempted to help you remain in their employment.
If you believe the firing was unlawful or you have related concerns, you may also review options such as Wrongful Termination Insurance (EPLI) for organizational risk considerations.
Mutual Termination
Sometimes you and your employer agree to part ways. No one is at fault; you simply both agree to move on. Together, you will agree on an exit strategy, which may include training your replacement.
How to Handle a Termination
The steps you take before or after a termination depend on which type affects you. One important step is ensuring both you and your employer are following employment laws and protections against discrimination or retaliation.
Also consider reviewing relevant coverage and risk areas that may affect a transition, such as Termination of Work Coverage and employment exposures like Hiring (insurance exposures).
Keep in mind that your future hireability may depend in part on the reference you receive from your current employer. When possible, end your employment relationship on a positive note. If you need help evaluating options, you can talk to an agent about next steps.
An employment termination is part of many people’s working careers. It can allow you to find a job that’s better suited for your talents, skills, and interests. Understand the three types of termination as you prepare for job success.
Frequently Asked Questions
Can I be fired for any reason?
In many places, at-will employment allows termination for many reasons, but employers cannot legally fire you for discriminatory reasons or as unlawful retaliation.
What is a Performance Improvement Plan (PIP)?
A PIP documents performance issues, sets expectations and timelines for improvement, and records the employer’s efforts to help an employee succeed.
Should I ask for a written reason when I'm terminated?
Yes, asking for documentation of the reason for termination can be useful for future job searches and if you need to assess legal or insurance-related options.
What is mutual termination and how is it different?
Mutual termination is an agreed separation with no assigned fault, often including a planned exit strategy and timelines agreed by both parties.