Separation of Employment vs Termination explains how resignations, layoffs, and absconding differ and affect HR decisions and documentation. Gain practical HR tips for handling exits, safeguarding company interests, managing expatriate employees, and minimizing legal risk in employee separations.
By Brad Nakase, Attorney
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One of the most significant and vital tasks performed by the HR department is employee separation. If this procedure is not managed effectively, it may result in a number of legal issues. Additionally, these are the hardest talks for managers and staff to have. Manager discussion scripts can be useful, but you must first be familiar with the jargon, especially the Separation of Employment vs Termination distinction.
The process of terminating an employee-employer relationship is known as employee separation. According to the circumstances surrounding the departure, there are several ways in which this separation can take place. A typical definition of an employee is:
Recruitment is the first step in the relationship between employees and their employers. It includes the selection process and induction. Through phases like performance oversight, career growth, and professional advancement, the relationship changes during the duration of employment. Employee separation, the last stage of this relationship, can happen involuntarily. It can occur via layoffs or termination, or voluntarily, through resignation. It is essential to comprehend employee separation. It signifies the end of the job relationship and usually entails legal & procedural issues.
The following three factors may be the cause of the separation between an employer and employee in typical situations. They will be discussed in the following paragraphs.
In addition to the aforementioned, the connection between an employer and employee may also be terminated through a monetary or economic downturn, during layoffs, during mergers, acquisitions, or takeovers, or during any other legal action taken by the state or federal government.
The procedure of separation & the documentation involved also vary depending on the sort of employee the company has employed, whether they are local, foreign-born, or a national of another country, or if they were recruited through outsourcing organizations.
1. Resignation
The most popular method of separation is this one. In an effort to pursue better prospects, such as a greater opportunity at a better salary package in a recognized company (or better-known company) in the same city and country, or in another town or country, the employee quits his job and engagement with his employer. Therefore, a worker quits or voluntarily ends their job for:
Sometimes an employee leaves on their own volition. They usually give a resignation. This notification is sent as a letter to the worker’s direct management or human resources. Understanding the Separation of Employment vs Termination helps HR teams handle voluntary exits respectfully.
2. Involuntary Termination
Employees typically have a negative opinion of this process. An employer has the authority to end the employment agreement of a worker through an involuntary termination. More often, this is referred to as firing. An employer may terminate an employee’s employment contract for a variety of reasons, but some typical ones are as follows:
The Separation of Employment vs Termination framework ensures HR differentiates between voluntary exits & employer-driven dismissals accurately.
3. Absconding
It is the least ethical, unforeseen, and disrespectful process of terminating a contract/agreement of employment. An employee does not report to work. He does not desire to renounce his possessions. There is a necessity to understand the intentions and motivations of any employee who decides to abscond. It is also known as runaway. Workers may flee under any or all of the following conditions or circumstances:
Understanding the Separation of Employment vs Termination helps HR professionals treat absconding cases appropriately.
When an employee notifies management or the head of the department of his resignation, HR should set up the initial meeting with him. To avoid the appearance that “no one truly cares,” the meeting should ideally be planned within a 24-hour period. Since the department is impartial, the HR Manager (Staff Relationship Manager) or a higher-ranking official should conduct the meeting to determine the underlying reason for the separation.
Give the division’s head your thoughts following the discussion, and let him know if you agree with the resignation. Following your notice of resignation, many employers also request that you undertake a worker exit meeting and/or questionnaire.
After the resignation is approved, notify the finance, payroll, and information technology departments and give the relevant employee a “letter of acknowledgment of resignation.”
In the present case, the department head will be tasked with the responsibility of coordinating the task allocation procedure, projects, and task distribution to the other team members.
It has been demonstrated that when an employee resigns and chooses to leave the company, they become less devoted, sincere, and committed to their work. Instead of them coming to the office and squandering the time of those who are committed to their job and the assets of the business, it is essential to release them as quickly as possible.
Human Resources should direct the information technology team to monitor any outbound emails from the employee separation system on the day the resignation letter is accepted. The worker should have his IT rights and permissions revoked, and he shouldn’t have the right to send emails to any additional email address outside of the office. No file on his machine should be accessible for him to copy, change, or remove.
HR should request that the employee in question acquire a no-due letter from each of the relevant departments.
On the worker’s last day of employment, HR should determine the total amount owed to them and make the payment. The business should also send him the letter of release on the final day of employment.
The Separation of Employment vs Termination understanding guides HR in applying consistent standards.
The procedure is going to be the same even for foreign workers, with the exception that there will be additional parties involved. Since it is the employer’s duty, every effort should be made to make sure that everything goes as smoothly as possible until the person’s last day with the company. As a result, the HR department should additionally notify the following divisions within the organization:
One may contest an involuntary termination in court. As a result, effort must be taken to record every instance that resulted in an individual’s involuntary termination.
The company should ensure that the right procedure is adopted in case of disciplinary measures. The employee was given both written and verbal warnings, and the whole episode is duly recorded.
Some documents will be required in the case of non-performance or involuntary termination:
The following parties have a role in the involuntary termination procedure:
The business is expected to seize all the belongings of the employee. The employee should be issued a letter of dismissal that clearly states the reasons why they were dismissed.
The employer might decide to pay the employee during the period of notice (it depends on the severity of the matter). For instance, he must be compensated for the period of notice in the event of non-performance, but not in the event of theft, misconduct, or disciplinary action. He must be reimbursed for the whole sum owed.
Expatriate Workers
One of the trickiest methods of separation is this one.
1. Local worker
Attempt to contact the employee through his cell phone, in case he did not appear to work, and had not reported where he was to you.
Make any attempt to call him at his home number in case he is not calling back, or he has a faulty cell phone. Even when that is not effective to assess the situation, discuss with his colleagues.
Assume that the staff member has fled if you are unable to obtain any information about him. Send him three formal notices beginning on the following day of his disappearance, and each additional notice thereafter every three days, in accordance with the employment regulations of the various countries. Remove his name from the employee payroll if he doesn’t respond immediately.
Take away his workstation, computer, drawer, etc., on the very first day he vanished. Analyze every email sent from his personal device and to whom, with the assistance of the Systems & Networking department. Stop paying him right now.
Seek legal assistance to recoup your expenses and/or any other goods or products that were given to him, including ID cards, laptops, corporate credit cards, houses, cars, and access cards, as appropriate.
2. Expatriate worker
The employee failed to report to work and was not updating on his location. Make a call to him on his cell phone or any other number provided by the company. Get in touch with his colleagues to get an idea of what takes place in case he is not calling back, his cell phone is not working, and his home is not responding to him. Confirm whether or not that person is still living in the country or has already left. Put a stop to his pay.
Report the incident to the police. Sudden absence could be explained in several ways. An accident, escaping out of the country, taking company secrets, or getting involved in a criminal or civil crime. Reporting the issue to the police is crucial for every reason and the company’s safety.
Provide a copy of the law enforcement report to the nation’s passport and immigration office. Additionally, send a copy to the nation’s high commission or consulate. Additionally, notify the employee’s financier, health insurance company, landlord, and any additional service providers.
Seek legal assistance to recoup your expenses and/or any further goods or products that were given to him, including laptops, corporate credit cards, ID cards, access cards, and other items as appropriate.
The Separation of Employment vs Termination concept is more than just a procedural distinction. The procedures outlined in this piece are not sector- or company-specific; rather, they are only the general guidelines that must be adhered to in the event of any separation. Businesses may decide to take a stricter or more relaxed stance, depending on the employment regulations that apply in the countries where they conduct business. This procedure is more cordial and morally righteous.
Whatever you may do, a worker will leave the company once he decides to leave it. If not today, tomorrow. When the employer decides to terminate the working relationship, he can rethink whether the accusations leveled against the worker are serious or not.
As previously said, absconding is a crime in and of itself; only cowards engage in this behavior; they simply give up without even trying. In a bid to bring out the best in you and make you a master, these folks flee from life’s realities and obstacles.
Whenever you, as an employee, decide to leave the firm, find a more suitable and professional way of doing so.
When you, as an organization, decide to terminate the employment of an employee, you see that you must maintain a chronological list of all the events and must also have all the needed documentation. Regretfully, the decision to quit cannot be contested in any court because it is regarded as an employee’s right; nevertheless, the decision to terminate can.
Separating employees is a lengthy procedure that does not involve making judgments all at once. Be precise. Act professionally.
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