Termination management Flashcards
what are the types of termination management
retirement, redundancy, resignation, dismissal,
what is retirement (Voluntary Termination)
occurs when an employee decides to
give up full-time or part-time work and is no longer a part of the workforce. (There is no hard and fast retirement age in Australia)
what is Redundancy (Voluntary or Involuntary Termination)
when a person’s job is no longer required to be performed, usually due to technological changes, a merger or takeover and the employee must leave the business
what is resignation (Voluntary Termination)
Resignation is voluntary termination that occurs when an employee chooses to leave the business, usually to go to another job. A period of notice normally needs to be given to the employer
what is dismissal (Involuntary Termination)
Dismissal is when the behaviour/work performance of an employee is unacceptable and it becomes necessary for a business to terminate the employment contract of that employee.
what is summary dismissal (Involuntary Termination)
Summary dismissal occurs when a serious breach of the employment contact occurs for example when an employee engages in criminal activity, drunkenness or assaults another employee. (No notice is given to terminated employee
what is dismissal on notice (Involuntary Termination)
Dismissal on notice is when an employee’s work performance is not satisfactory and the employee is given a period of notice (Usually 4 weeks or based on the award/contract) or is paid in lieu of notice.
what is unfair dismissal (Involuntary Termination)
Unfair Dismissal is when an employee has been dismissed because the employer has
discriminated against them.
what are advantages of Retirement, Redundancy, Resignation
there will be fewer employees, therefore lowering the wages cost of the business and if a business is successful in reducing its employment levels to maintainable levels, the business is more likely to
succeed in the long term.
what are disadvantages of Retirement, Redundancy, Resignation
usually the terminated employees have formed friendships with other employees so the loss of those employees could lower morale and productivity for the remaining employees. Also if the termination happens suddenly, the remaining employees might end up with additional stress or workload.
what are advantages of dismissal
it removes an unproductive employee who is not capable of performing the job successfully or whose behaviour is not up to standard. Another advantage is that the dismissal of a poorly performing employee will often be a relief to other staff members who may have had to
do additional work to cover the poor work effort of the dismissed employee.
what are disadvantages of dismissal
It can take a long time to be able to correctly dismiss an employee because the HRM must provide
multiple warnings and make attempts to support, retrain or rectify the behaviour or attitude of the poorly performing employee. This uses
up the time of the HRM who loses productivity for other areas of their role. Another disadvantage is that with dismissal, it can leave remaining employees feeling job insecure with the feeling of remaining employees that they could be the next to be forced to leave.
what are employee entitlement considerations
when a business has a legal obligation to provide payments to employees who are ‘separating/not continuing their positions within a business’
what are examples of employee entitlement considerations
Holiday pay/unpaid wages, a period of notice, long service leave owing
what is employee transit considerations
where a business has a moral obligation to provide support to employees who are ‘separating/not continuing their positions within a business
examples of employee transit considerations
Support towards retirement by offering the employee part-time work to help them ‘transition’ into retirement
Psychological counselling to help an employee adjust to their new circumstances of losing their job through
redundancy or retiring from their job.
Financial counselling to assist with managing a large lump sum payment (redundancy payout)
