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Termination of Employment

Termination of employment is the ending of the working relationship between an employer and an employee, which can happen in several ways and is shaped by the contract and the applicable law.

Part of the employment law cluster in the employment knowledge graph — connected to occupations, documents, hiring guides, career guides, country guides and employment law.

What termination of employment means

Termination of employment is the point at which the working relationship ends. It can be initiated by the employer, by the employee, or happen by agreement or because a fixed term or task has finished. Each route carries its own expectations around process, notice and documentation.

Because ending a job affects both sides, many jurisdictions set rules on how it can be done fairly, what notice or process is needed and what records should be kept. The aim is an orderly close to the relationship that respects the rights of both parties.

Key concepts

  • Resignation: the employee chooses to end the relationship.
  • Dismissal: the employer ends the relationship.
  • Mutual agreement: both parties agree to part ways.
  • Expiry: a fixed-term contract or task reaches its end.
  • Notice: advance warning given before the relationship ends.
  • Final arrangements: settling outstanding matters and returning property.
  • Documentation: confirming the end of employment in writing.

The employer perspective

  • Follow a fair process appropriate to the reason for ending employment.
  • Give the notice required by the contract and local law.
  • Keep clear records of the reasons and steps taken.
  • Settle outstanding matters and arrange the return of property.
  • Confirm the end of employment and any reference arrangements in writing.

The employee perspective

  • Understand the notice you must give or are entitled to receive.
  • Follow any agreed resignation process and keep a copy in writing.
  • Check what happens to outstanding leave and final matters.
  • Return company property and complete any exit steps.
  • Ask about references and confirmation of your employment dates.

How this varies

The notice required, the process for a fair ending and the protections that apply differ between countries and can change over time. Some jurisdictions distinguish strongly between resignation, dismissal and expiry, with different rules for each.

Because these specifics vary and are updated, confirm the current rules with the official labour authority or a qualified adviser in the relevant country before relying on any particular process.

Common misunderstandings

  • Treating all ways of ending employment as if they followed the same rules.
  • Skipping a fair process where one is required.
  • Overlooking the notice the contract or law requires.
  • Failing to document the reasons and steps taken.
  • Assuming a verbal resignation needs no written confirmation.

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For general informational purposes only — not legal advice. This page explains widely-recognised employment concepts at a general, educational level and is not legal, employment-law, immigration, tax or payroll advice, nor an interpretation of any specific law. Employment law differs by jurisdiction, sector and contract and changes over time; this page contains no specific statutory figures, notice periods, salary or compensation data, case law or fabricated statistics. Always confirm current requirements with the official government authority named on this page and a qualified professional before acting.
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FAQ

Frequently asked questions

What is termination of employment?

It is the ending of the working relationship between an employer and an employee, which can happen through resignation, dismissal, mutual agreement or the expiry of a fixed term or task.

What is the difference between resignation and dismissal?

Resignation is when the employee ends the relationship, while dismissal is when the employer ends it. Each tends to follow different rules and processes.

Is notice always required?

Notice requirements depend on the contract and local law and vary by jurisdiction. Some situations have specific notice rules — confirm the current requirements with the relevant authority.

What should be documented when employment ends?

It is common to confirm the end of employment in writing and keep records of the reasons and steps taken. Final matters and any reference arrangements are usually addressed too.

What happens to outstanding leave when employment ends?

How outstanding leave is handled depends on the contract and local rules, which vary by jurisdiction. Check the position that applies where the work is performed.