There are two types of job terminations:

Voluntary: A voluntary termination of employment is a decision made by the employee. Voluntary termination includes resignation or retirement. Involuntary: Employment termination is involuntary when an employee is terminated by the employer.

Involuntary termination may be due to the employee’s actions or behavior, in which case they are terminated for cause. However, involuntary termination might also happen if the company downsizes or lays off workers, conditions which are outside of the employee’s control. Many employers have established procedures that managers must follow in order to terminate an employee. Typically, supervisors will be asked to document any problems, develop a performance plan to address issues, and formally warn employees prior to terminating them. Warnings often follow a continuum of severity beginning with a verbal warning, proceeding to a written warning, and ending with a final warning. Warning letters reference specific problem behaviors, attitudes, ethical or legal transgressions, and performance issues. Goals for improvement are specified, and time frames for enactment of changes are established. Warning letters detail consequences, including termination, for failure to meet expectations.

At-Will Employment

In the U.S., most jobs are considered to be at-will employment, which allows employers the freedom to dismiss employees and employees the freedom to leave companies, each without providing notice (although it’s often given as a courtesy). The exceptions are jobs that are covered under employment contracts and dismissals for illegal reasons.

Wrongful Termination

Illegal dismissal happens when an employer fires an employee in a way that breaks an employment contract or an employment law. Such termination is deemed wrongful, and includes the following reasons:

Racial or religious discriminationRetaliation or paybackActing as a whistleblower

If you believe you’ve been dismissed illegally, you can file a claim and take your case to court. If you win the case, you may receive monetary compensation for being wrongfully dismissed. In lieu of compensation, another remedy is to reinstate you at the company. In addition to any compensation you win, the law can also justify charging the employer for punitive damages. In the United States, punishment can vary on account of the countless state and federal laws surrounding this topic.

After Termination

Once an employee has been terminated, they may be able to collect certain kinds of payments:

Unemployment: Your ability to receive unemployment and other benefits after being dismissed may depend on the reasons provided for your dismissal, as well as your state. You may be unable to collect unemployment if you are fired. Severance pay: Some companies may offer severance pay, particularly if the dismissal is due to company-related changes, such as restructuring or downsizing. Health care: You may be eligible to continue group health benefits for a period of time after a job loss.