What is the difference between firing and termination

Typically, a termination because of misconduct or poor job performance will result in immediate termination. However, if a company is severing employment for economic reasons, the company may provide the worker with advance notice so that the worker can make preparations for the future. Employees who leave for other job opportunities typically give a standard two-week notice, but this can be more or less depending on the situation. Employees do not pay for the ability to resign!

But, in some cases an employer will provide some form of compensation to account for the job loss. Typically known as severance pay, this compensation varies depending upon the company and the reason for termination. For instance, the company may offer severance pay if it is downsizing or is forced to lay off workers for economic reasons. Severance pay allows workers to have some reserve cash on hand once employment ends and while they seek new employment.

When an employee resigns and gives proper notice, he can still receive his normal compensation up until his final day of employment. Under the Consolidated Omnibus Budget Reconciliation Act or COBRA, employees who have their employment terminated have the right to continue their health insurance benefits by continuing to pay the health insurance premium.

Generally this includes paying the portion the employer had previously paid, also. Why this matters: There are some risks that come with saying you were laid off when you were actually fired for performance or policy violations. Being fired means that the company ended your employment for reasons specific to you. Getting laid off is different, and means that the company eliminated your position for strategic or financial reasons and not through any fault of yours.

Common reasons for being fired include poor performance, violation of company policies, failure to learn the job after being hired, or failure to get along with team members. You may also hear this referred to as terminated. Most often, terminated means fired. On the other hand, a layoff is typically something that happens to more than one person at a time and is triggered by company changes, restructuring, acquisitions, financial struggles, pivots in the business model, economic downturn, etc.

Getting fired is an event specific to you, and is due to something within your control work performance, communication, ability to work with the team, ability to learn the job quickly, attitude, etc. Company A acquires Company B. Both companies provide scheduling software for home cleaners and maid services. Company A wanted Company B for its technology and customer base. However, they already have their own customer support team which is capable of handling all customer service needs.

Layoffs are a common part of business in many industries and are nothing to be ashamed of or anxious about sharing. The company went through a restructuring and our person team was let go. The company acquired another firm and decided our group was redundant. Seven other people were laid off, too. Both are a temporary work stoppage without pay.

A termination, unlike a layoff, is a permanent work stoppage. When someone is terminated, his or her employer does not hope to bring them back, rather the employer is seeking to cut ties with that person entirely, forever. Notice is measured in units of time. Calculating the appropriate notice owed to an employee is an art, and there is no fixed formula. Call us for a free consultation and we calculate how much notice you are entitled to. In short, a layoff is a tool for employers to temporarily stop paying employees while termination is when an employer fires someone.

Contact Dutton Employment Law for advice on the issues of layoffs and terminations. We assist employees and employers and will provide a free minute consultation. Jeff is an employment lawyer in Toronto. Jeff is a frequent lecturer on employment law and is the author of an employment law textbook and various trade journal articles.