Termination management Flashcards
Retirement
Retirement is an individual deciding to leave the workforce as they no longer wish to work. This is voluntary termination.
• the employee must advise their employer in writing of their intention to retire. while a period of notice must be given by the employee, it often happens that the end date is negotiated between the parties.
• Regardless of whether the employee is resigning or retiring they are entitled to receive from the employer their entitlements such untaken annual leave and long service leave
• Transition issues
o Those retiring will often face issues with the transitions. A business can make this easier by offering services such as counselling or investment advice, along with lifestyle planning.
o It is important that a business plan to transition period if they have a workforce where many employees are nearing retiring age. Succession planning is an important aspect here so that when experienced employees retire, the business has competent people to sept into vacant roles
Retirement entitlements
o Employees are paid superannuation during their time of employment and they are entitled to access this once they hit retirement age set by the government. Some employees may also be entitled to a pension
Retirement transition issues
o Those retiring will often face issues with the transitions. A business can make this easier by offering services such as counselling or investment advice, along with lifestyle planning.
o It is important that a business plan to transition period if they have a workforce where many employees are nearing retiring age. Succession planning is an important aspect here so that when experienced employees retire, the business has competent people to sept into vacant roles
Redundancy
Redundancy is an employee no longer working for a business because there is insufficient work or their job no longer exists. This is involuntary termination. Redundancy can occur as:
• An employer is closing part or all of its business
• An internal organisational restructure occurs.
• New technology is introduced
• A business is relocating
• The business cannot afford to pay the current level of employees that they have
Redundancy entitlements
o Those that face redundancy are entitled to a redundancy package which is a financial payment based on how long they have been working for the business. The amount they receive will be outlined in their workplace agreement. Employees are also entitled to Time off work to attend job interviews and look for new employment.
Redundancy transition issues
o This can be a major change for employees and it is important that the business support them in this transition. Organisations can offer support by providing counselling, career counselling and extra training to help improve their employability
Resignation
Designation is an employee voluntarily terminating their own employment, usually to take another job position elsewhere.
• The employee should notify the employer in writing of their intention to resign and advise the ending date.
• An exit interview is recommended, as it helps to highlight if there are any problems in that business which have led to dissatisfaction causing the resignation and which need to be rectified by the business
Resignation entitlements
o Wages or salary still owing
o Accrued annual leave
o Long service leave
Resignation transition issues
o A manager can offer resume writing or interview training to employees to improve their employability
Dismissal
Dismissal is the involuntary termination of an employee who fails to meet required standards or displays unacceptable or unlawful behaviour. It is informally known as the firing or sacking of employee.
• A business must insure that it has conducted appropriate counselling and disciplinary procedures before dismissal takes place.
• An employer must provide a written notice of termination and reasons for such termination
Dismissal entitlements
o Employees are entitled to full payment for the work they have completed as well as entitlements such as annual leave and any payments for the notice given.
o It is important that a business knows their legal obligation when dismissing employees to avoid unfair dismissal.
o Unfair dismissal is where employee has been dismissed in a harsh, unjust or unreasonable matter
Dismissal transition issues
o A manager can introduce counselling and financial services to ease the uncertainty of leaving staff. They can also provide networking support in the form of contact that an employee can use to gain employment.
