Termination vs Resignation

Termination vs. Resignation

There is a lot of uncertainty in the business world. On one hand, where employers are figuring out how to manage the employee cost, on the other hand, employees are trying to comprehend the aspects associated with termination & resignation.

Termination and Resignation – What’s the difference?

Termination refers to the end of the duration of an employee's service at his firm. This can be classified into voluntary and involuntary

• Involuntary termination occurs when the employer decides that an employee's service is redundant to the firm. This is also colloquially referred to as 'being fired' or 'getting sacked'.
• Voluntary termination, on the other hand, is the occasion where the employee himself decides to opt-out of his job and this is analogous to resignation.

Involuntary termination can be further classified based upon the grounds for termination. You can get dismissed or fired due to your incompetence, faux pas, or when you fail to adhere to your firm's rules and work ethics. Lay-off is the other type of involuntary termination. Layoffs usually occur due to the unfortunate economic turndown of your company. This downsizing is usually done for business and economic reasons and has very little to do with an employee's performance. Getting laid - off doesn't risk your chances of getting a new job, whereas getting fired does affect your chances of getting employed again.

Resignation

It is mandatory to be extremely ethical and follow the conventional resignation format when quitting a job. Take your time to make the right decision. It is advisable to resign from your job only when you already have a better offer in your hands.

• Make sure you are confident about your decision.
• It is necessary to produce a written resignation letter to your employer at least two weeks before your intended last day at work.
• Ensure that your line manager/ supervisor and HR are intimated regarding your resignation.
• Schedule a meeting with your manager in person to discuss your resignation in advance.
• See that you sincerely thank your employer for the opportunity and for the experience you've gained working at their company.
• Offer to help with the training process required for your replacement.
• Assure your employer that all your current projects would be consummated before your resignation.
• It might be necessary to seek legal advice depending upon the nature of your job and your position held.

Keeping aside personal reasons like opting to study further, relocation and family issues, here are a few other reasons to consider quitting from your current job.

One of the most popular reasons people quit from a job is because they have a better offer in their hands that would boost their career graph

• You feel that your working environment is toxic and stressful.
• You detest your job and feel like you are not cut out for it.
• You realize that you are constantly bringing home negative energy from work.

Employer - Termination Rules

It is unfeasible for an employer to simply fire an employee. The employer might have to face several legal and reputational issues when they fail to follow due process. There are a few termination rules for employers to abide by when terminating an employee's service.

• The employee must be provided with one month's notice in writing before termination.
• An employee cannot be fired without stating the valid reason for his termination.
• The employer must pay compensation to the employee equivalent to fifteen days' average pay for every completed year of service.
• The employer cannot sack an employee due to his health issues.
• An employee cannot be terminated when she seeks maternity leave or because she is pregnant.
• An employer cannot fire an employee without obtaining mutual consent.

There are also some guidelines to follow when lying off your employees. It is mandatory to mention the firm's lay off policies in the employment contract. The employees must be notified about redundancy and they also have a provision to claim redundancy pay. Lay off is done due to the company's economic downturn and doesn't depend on the employee's incompetence. It usually depends on the 'Last In First Out' policy.

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Employee Rights

• The employer must provide an agreement that contains all the terms and conditions regarding their job before hiring an employee.
• The employee should never be denied his request to take leave if the reason is genuine. There are four types of leaves:
• Casual leave (leave took due to unexpected reasons- due to emergencies).
• Sick leave (due to accidents, sickness, and other health-related reasons).
• Paid leave (every employee is entitled to get periodic paid holidays that they can opt for any time).
• Other leaves (unpaid leaves that could result in deduction of your salary)
• They must never be denied a timely salary.
• The maternity benefit act states that women employees should be given a minimum of 36 weeks of paid maternity leave.
• They must be given prior notice (4 to 6 weeks) before getting terminated. The vendor termination rules must be abided.
• The employees must be given assurance that they would get protection against sexual harassment and that legal action would be taken immediately when an employee faces harassment.
• The Constitution contains the Industrial Employment (Standing Order) Act (1946),
• Industrial Disputes Act (1947), Payment of Gratuity Act (1972), Maternity benefit Act (1961), Provident Fund Act (1952) among others.

Retirement and Employment Provident Fund

The age for retirement for government employees ranges from 60 to 65, whereas it is around 58 for employees in the private sector. We know that government employees get benefitted from pension schemes after retirement. So, are there any similar schemes to benefit private-sector employees?

This is where the Employee Provident Fund (EPF) comes into play. This was launched in the year 1952. Every company operating with more than 20 employees is qualified to come under the EPF scheme. It includes both public and private sectors. About 12% of every employee's salary gets contributed to the EPF every month. This way the employee would still have financial security even after retirement by withdrawing the amount in his EPF account. Having an EPF account also allows an employee to enjoy tax concessions.

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