• Employers should create clear termination policies to help negate the effects of employee termination, especially if the termination is involuntary.

When an employer/manager decides to end a person’s employment, this is known as an involuntary termination.

Employers should carefully weigh whether terminating an employee is in the company’s best interest. Certain types of involuntary termination often lead to litigation and arbitration. Terminated employees are rarely happy with the company being left behind.

A few categories fall under involuntary termination, including:

• Wrongful termination
• Downsizing
• Layoffs
• Plants closing

Since involuntary termination of employment always has an adverse effect on the employee and the organization, it’s necessary for managements to receive clear termination policies. Employers should insist these policies be followed for any termination of employment.