Termination of Employment: Types, Processes & Key Issues
This paper examines the termination of employment as a multifaceted organizational and social phenomenon. It identifies and explains seven key issues associated with ending an employment relationship: layoffs, resignation, dismissal, exit interviews, return of company property, transfer or relocation, and severance pay. Drawing on scholarly sources, the paper explores how each form of termination differs in terms of who initiates it, the conditions under which it occurs, and its implications for both the organization and the broader society. The paper also considers how economic pressures such as organizational restructuring and downsizing shape modern employment termination practices.
- Introduction to Employment Termination: Defines employment termination and its general forms
- Layoffs and Organizational Downsizing: Examines mass layoffs and their societal impacts
- Resignation and Dismissal: Contrasts voluntary resignation with employer-led dismissal
- Exit Interviews and Return of Company Property: Covers offboarding procedures and feedback collection
- Transfer, Relocation, and Severance Pay: Explores relocation complexity and severance benefit variability
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What makes this paper effective
- Provides a clear, organized taxonomy of employment termination types, making complex HR concepts accessible and easy to compare.
- Integrates direct scholarly quotations to support each major point, grounding practical workplace issues in academic research.
- Connects individual-level events (e.g., resignation, dismissal) to broader organizational and societal consequences, demonstrating analytical range.
Key academic technique demonstrated
The paper demonstrates effective use of classification as an analytical framework. By systematically categorizing the seven forms of employment termination and distinguishing them by who initiates the action and why, the author creates a structured comparative analysis. Each category is supported with at least one scholarly citation, showing how academic evidence can anchor descriptive workplace concepts.
Structure breakdown
The paper opens with a brief introductory section establishing context (economic crisis, restructuring) and defining employment termination. It then moves through seven numbered subsections—layoff, resignation, dismissal, exit interview, return of company property, transfer/relocation, and severance pay—each self-contained but connected by the overarching theme. This listicle-style academic structure suits informational papers where comprehensiveness and clarity are prioritized over linear argumentation.
Introduction to Employment Termination
As economic crises continue to take their toll on populations, more and more economic agents are turning to restructuring processes in order to enhance their financial stability. One specific application of organizational restructuring is the downsizing of staff as a means of reducing workforce expenditures. Aside from downsizing, however, the termination of employment can occur in other ways as well, and it is linked to decisions, choices, and consequences. Employment termination specifically refers to the end of an employment relationship between an individual and an organization; it can be initiated by the employee, by the employer, or it may be a mutual decision.
The most notable issues related to the termination of an employment relationship are the following: layoff, resignation, dismissal, exit interview, return of company property, transfer/relocation, and severance pay.
Layoffs and Organizational Downsizing
A layoff occurs when the decision to terminate employment is made by the organization, typically generated by a lack of sufficient work to require the efforts of the entire staff. Layoffs are generally troublesome due to the scale at which they occur — they tend to happen in large numbers as a result of organizational problems. Mass layoffs take the form of downsizing, and this phenomenon generates a series of problems both within the organization and within society at large. Within society, the number of unemployed individuals increases, deepening the socioeconomic problem of unemployment and placing additional strain on the state budget. Within the organization, problems manifest as lowered employee morale and a persistent sense of job insecurity (Mollica and Gray, 2001).
Resignation and Dismissal
Resignation occurs when the employment contract is terminated at the desire of the individual employee. Mass resignations are uncommon, and when an individual resignation does occur, it can be attributed to a range of personal and professional factors — such as the prospect of a better position at another company, or ongoing frustration with the current work environment. The typical mechanism involves the employee submitting a written resignation to the employer. Generally, the employer accepts the resignation and the departure is amicable. Nevertheless, there are situations in which the employer does not accept the resignation and the employment relationship continues, or is eventually terminated under more tense circumstances. In cases involving public positions, resignations can take on a political dimension; they may be submitted as a gesture or statement, and may be refused in order to protect the public institution and its image (Glant, 2002).
Dismissal is another means of terminating an employment contract, distinguished by the fact that the choice belongs to the employer and is usually the result of an employee's misconduct or underperformance. The cause may be technical — related to job tasks and performance — or disciplinary in nature. The rate of dismissal varies across organizations depending on their characteristics and internal policies. While some organizations register high rates of dismissal, others maintain minimal rates, with the variance attributed to organizational differences. As Dell'Omo (1997) notes:
"Numerous arguments have been advanced suggesting that this variation in dismissal usage is due to differences across firms in human resource policies and procedures as well as other organizational characteristics. For example, Steiber and Rogers (1994) argue that where organizations place few restrictions on managerial authority, dismissal is used to excess. Others argue that low dismissal rates are observed where the disciplinary system provides substantial protection from unfair dismissal. According to this argument, managers in such settings are often unwilling to use dismissal even where justified, because of the difficulties and risks associated with terminating an employee."
References
Dell'Omo, G.G., 1997, Managerial use of dismissal: organizational-level determinants, Personnel Psychology, Vol. 50, No. 4.
Glant, T., 2002, Against all odds: Vira B. Whitehouse and Rosika Schwimmer in Switzerland, American Studies International, Vol. 40, No. 1.
Knouse, S.B., Beard, J.W., Pollard, H.G., Giacalone, R.A., 1996, Willingness to discuss exit interview topics: the impact of attitudes toward supervisor and authority, Journal of Psychology, Vol. 130, No. 3.
McGough, L.S., 2003, Starting over: the heuristic of family relocation decision making, St. John's Law Review, Vol. 77, No. 2.
Mollica, K.A., Gray, B., 2001, When layoff survivors become layoff victims: propensity to litigate, Human Resources Planning, Vol. 24, No. 1.
Pita, C., 1996, Advance notice and severance pay provisions in contracts, Monthly Labor Review, Vol. 119, No. 7.
Schroeder, J.G., 1999, At-will employees get enhanced protection from termination, Defense Council Journal, Vol. 66, No. 3.
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