A2- Termination Management Flashcards
Types of Termination
Voluntary:
-retirement
-Resignation
-redundancy
Involuntary:
-dismissal
-Redundancy
Retirment
occurs when an employee decides to give full-time or part-time work and no longer be part of the labour force.
Resignation
The voluntary ending of employment by the employee ‘quitting’ their job
Why do ppl resign?
Promotion with another business
Start their own business
Boredom
Change of lifestyle
Redundancy
occurs when a person’s job no longer exists, usually due to technological changes, a business restructure, or a merger or acquisition
can also occur cuz of:
Business closure
Technological changes
Organisational restructure
Merger or acquisition
Business relocation
Voluntary v Involuntary Redundancy
Voluntary - Employees nominate themselves because they are willing to leave the organisation
Involuntary - Employees are forced to leave the organisation against their will
rights of employees
procedures to be followed by the HRM include:
-Providing the redundant employee with relevant information
-Time off leading into the final day
-Redundancy pay (severance pay) ; dependant upon the term of employment
-Annual leave or long service leave owed
Dismissal
occurs when the behaviour of an employee is unacceptable and a business terminates their employment. There are two types of dismissal: summary and on notice
Summary dismissal
when an employee commits a serious breach of their employment contract. No notice is required.
Dismissal on notice
When an employee is not performing the job satisfactorily.Poor performance may be identified during an appraisal or performance process
Unfair dismissal
when an employee is dismissed because the employer has discriminated against them in some way, such as firing someone because she is pregnant
Managing the termination process
Managers should be trained to handle dismissals in a manner that:
-Takes account of the legal and financial implications
-minimises the trauma for both parties
-does not have adverse effects on the morale of the remaining staff
Entitlement issues
the rights to benefits that employees have when leaving the workplace, either on a voluntary or an involuntary basis
Examples
AL or LSL owed
Salary owed
Termination statement
Redundancy payment
Transition considerations
Issues relating to the process of changing from one job to another or from one set of circumstances to another
Transition considerations- Retirement
Retirement: the transition considerations that may be offered involve a gradual reduction in days worked over a period of time to allow the employee to make a smooth transition to retirement.