• Voluntary termination is decided by the employee.

When an employee decides to leave a job voluntarily, this is commonly known as voluntary termination. This definition of termination differs from a layoff or a firing, in which the decision to end employment was made by the employer or another party, rather than the employee.

Employees choose to leave jobs for a variety of reasons. Common reasons include:

• A change in personal circumstances such as family demands;
• Going back to school;
• Dissatisfaction with working conditions such as a hostile supervisor, lack of recognition of work performance, and lack of autonomy, challenge, or work relationships (among others); and
• A new job that offers higher remuneration or improved career prospects.

Voluntary termination can also occur during recessionary times, or even during times when a particular firm is under duress. In these cases, a company may ask some employees to voluntarily resign to reduce the number of layoffs needed. Employers may offer the employee that is leaving voluntarily an improved exit package, including extra weeks of severance pay, longer coverage of health insurance, and other benefits.