I. Voluntary Separation
Voluntary separation occurs when an employee chooses to end their employment.
A. Resignation
This is the most common form of voluntary separation, where an employee decides to leave their position for any reason.
Definition: The voluntary end of employment initiated by an employee.
Process & Best Practices:
Notice: It is standard professional courtesy for an employee to provide at least two weeks' written notice. This allows the company time for knowledge transfer and to begin the recruitment process, ensuring a smoother transition. While often not legally required, failing to provide notice may affect eligibility for rehire.
Implementation: The resignation should be submitted in writing (email is acceptable) to the employee's direct manager, who must then notify Human Resources (HR).
Employee Responsibilities: During the notice period, the employee is expected to continue performing their duties and assist in transitioning their responsibilities. An exit interview with HR is typically scheduled.
B. Retirement
This is a specific type of resignation available only to employees who meet certain criteria.
Definition: The voluntary end of employment initiated by an employee who meets the company's criteria for retirement, typically based on a combination of age and years of service.
Key Differentiator: Unlike a standard resignation, retirement grants the employee access to specific retirement benefits, such as a pension, retiree health plans, or specific 401(k) distribution options.
Process: Employees considering retirement should contact HR well in advance (ideally 3-6 months) to understand their eligibility, review benefit calculations, and complete the necessary paperwork.
C. Job Abandonment
This is a resignation by default, occurring when an employee stops coming to work without any communication.
Definition: An employee is considered to have voluntarily ended their employment after an absence of three or more consecutive working days without any notice to their manager.
Process:
After the first missed workday without notice, the manager should make and document reasonable attempts to contact the employee (e.g., phone calls, emails).
If no contact is made by the end of the third consecutive day, the separation is processed as a voluntary resignation due to job abandonment.
Practical Application: The "three-day rule" is a common business standard. However, managers have the discretion to consider extenuating circumstances (e.g., a medical emergency that prevented contact) if the employee later provides a valid reason for their absence. Proper documentation of contact attempts is crucial to protect the company from potential wrongful termination claims.
D. Failure to Return from Leave
This is a specific form of job abandonment related to an approved leave of absence.
Definition: Failure to return to work on the agreed-upon date after a Company-approved leave of absence (e.g., FMLA, personal leave, military leave) will be considered a voluntary end of employment.
Process: HR must confirm the official end date of the leave. If the employee does not return to work or make contact on the next scheduled workday, the company can process the separation. This action must be handled carefully, especially with medically-protected leaves, to ensure compliance with laws like the ADA and FMLA.
II. Involuntary Separation
Involuntary separation occurs when the Company chooses to end the employment relationship. These actions must be handled with care and thorough documentation.
A. Discharge (Termination for Cause)
This is a termination initiated by the company due to an employee's actions or performance.
Definition: An involuntary end of employment initiated by the Company due to a violation of policy, misconduct, inappropriate behavior, or unsatisfactory performance.
Process & Implementation:
Progressive Discipline: For issues of unsatisfactory performance, companies often use a progressive discipline process (e.g., verbal warning -> written warning -> final warning -> termination). This demonstrates a good-faith effort to help the employee improve and is a cost-effective way to mitigate legal risk by creating a clear, documented record.
Investigation: For allegations of serious misconduct (e.g., harassment, theft), a prompt and impartial investigation must be conducted before a termination decision is made.
HR Consultation: All discharge actions must be reviewed and fully documented by managers in consultation with HR to ensure the decision is fair, consistent, and legally defensible.
Unethical/Illegal Considerations:
Wrongful Termination: A discharge that violates public policy or an employment contract can lead to a wrongful termination lawsuit. Common examples include terminating an employee for discriminatory reasons (related to race, gender, age, etc.), as retaliation for whistleblowing, or in breach of a written contract. These lawsuits can be extremely costly in terms of legal fees and damages.
B. Reduction in Force (Layoff)
This is a "no-fault" termination based on business needs rather than individual performance.
Definition: The elimination of one or more positions due to business or economic conditions, such as restructuring, budget cuts, or the elimination of a department.
Process & Legal Requirements:
Selection Criteria: The criteria for selecting employees for a layoff must be objective, job-related, and non-discriminatory. Common criteria include seniority, skills, or elimination of an entire role. Applying these criteria inconsistently or in a discriminatory manner is illegal.
WARN Act: The federal Worker Adjustment and Retraining Notification (WARN) Act requires employers with 100 or more employees to provide 60 days' advance notice of mass layoffs or plant closings. State-specific "mini-WARN" acts may have additional requirements.
Severance & Benefits: Companies often offer a severance package in exchange for the employee signing a release of legal claims. Laid-off employees are also eligible for unemployment benefits and the right to continue health insurance coverage under COBRA.
C. Death
Employment ends automatically upon the death of an active employee.
Definition: The automatic end of employment due to the death of an employee.
Process: HR will work with the employee's designated emergency contact or estate representative to process the final paycheck, pay out any accrued benefits (like unused PTO), and facilitate the claims process for any company-provided life insurance.
III. Related Concepts and Procedures
A. Final Paycheck
The timing and content of the final paycheck are governed by state law. Some states require payment on the employee's last day, while others allow it to be processed on the next regular payday. The final check includes all wages owed and, depending on state law and company policy, payment for accrued but unused vacation or PTO.
B. Constructive Discharge
This is a critical legal concept where an employee's resignation may be treated as a termination.
Definition: Occurs when an employer makes an employee's working conditions so intolerable that a reasonable person in that situation would feel compelled to resign.
Practical Example: If a manager subjects an employee to constant harassment that goes unaddressed by the company, or demotes a top performer to a demeaning role to force them to quit, the employee's subsequent resignation could be legally considered a constructive discharge.
Legal Implications: This is an illegal act. If proven, the resignation is treated as a wrongful termination, exposing the company to the same legal and financial damages.