Termination of employment means when the employee is relieved of his duties and responsibilities either voluntarily or involuntarily.

Voluntary termination means when an employee resigns or reaches the retirement age.

Involuntary terminations mean when the employee is fired from the job for a variety of reasons like non-performance, irregular attendance, misconduct, gross negligence (for instance leaking of sensitive information) or cases when the employee is found guilty of sexual harassment or discrimination.

Generally, the process of termination is laid down in the employment contract which needs to be signed by both the employee and the employer at the start of the employment.

Typically, a notice of specific duration or salary instead of the notice is to be provided in case of termination.

Labour laws of each state are different and will supersede the employment contract provisions in case of any conflict between the contractual provisions and the state labor laws.

It is advisable that the employment contract be constructed in such a way that it is in sync with the legal provisions to save time and money.

Click here to download a sample termination letter

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