Employee exit management

Employee exit management is the process used within many businesses to terminate employees contracts in a professional manner. It applies to employees who have resigned and those that have been terminated by the company.

When an employee is terminated there are a number of considerations that an organization needs to make in order to cleanly end the relationship between the company and the employee. The company as a legal entity has a responsibility to the employee which may extend beyond the period of employment and this is the primary focus of the exit procedure.^[1]

As part of computer security, the process will also ensure that access privileges are revoked when a person leaves, and may also cover other issues such as the recovery of equipment, keys and credit cards to ensure that security integrity be maintained.

Termination of Contract

Employees may terminate their contract by resigning or an employer may terminate the contract by dismissing an employee.^[2]

Short term Employment

Short term employment is when an employee is hired for less than one year. These will normally end automatically once the end date is reached. However, the employer may wish to end the contract earlier or extend the contract.

Temporary Contract

A temporary contract is usually around 3 months long. Employers may recruit temporary employees during busy periods such as Christmas. At the end of the temporary contract the employer may wish to offer a permanent position or extend the temporary contract. Temporary contract will also automatically end once the end date is reached.

Contractor basis

Employees maybe hired on a contractor basis for the completing of a certain task. Once the task is completed or the event takes place the contract ends.this type of contract employees falls under seasonal works.

Dismissal

Dismissal is when you end the contract of an employee. This must be done in a fair way.

There are different types of dismissal:^[3]

Fair dismissal- Based on the reason and the process of dismissal
Unfair dismissal- Based on the reason and the process of dismissal
Constructive dismissal- This is when a serious breach of contract has been carried out and therefore the employee must resign in response to the employer’s conduct.
Wrongful dismissal- This is where you break the terms of an employee’s contract in the dismissal process, e.g. dismissing someone without giving them proper notice.

If the employer dismisses you from 6 April 2009 onwards, they should follow the procedures which are laid out in the Acas Code of Practice on disciplinary and grievance procedures.

The procedure should have the following steps:^[4]

Letter- The employer should send you a formal letter explaining the situation.
Meeting- The letter should be followed by a meeting to discuss everything face to face.
Verdict- The employer should then write to you expressing their final decision.
Appeal- You then have the right to appeal against your employer’s decision

For Conduct or Performance Reasons

An employer may dismiss you if you are unable to complete the job to the required standard or you have the capability to complete to a high standard but for some reason or another you are unable to.

There is no specific process by law an employer must follow in order to dismiss an individual however it must be carried out fairly.

Misconduct includes persistent lateness or unauthorised absence. It is based on serious misconduct or gross misconduct. Serious misconduct includes poor performance for which the employee should be provided with a formal warning which states that not improving could lead to dismissal. Gross misconduct includes theft, physical violence, serious insubordination and gross negligence for which the employee may be dismissed immediately.^[5]

Due to Illness

An employee may be dismissed due to medical reasons. The employer must pay for the employee whilst dismissed for a period not exceeding 20 weeks. The employer may wish to provide the employee with alternative work for the period of time, which is suited to your medical needs.^[6]

Redundancy

Redundancy is when you dismiss an employee because you no longer need anyone to do their job.^[7]

Liquidation and Administration

Both company Liquidation and Administration can lead to the end of the company. Company administration intention is to help the company repay its debts and avoid insolvency. Liquidation is when the company is forced to sell all of its assets before the company vanishes as a whole. This will result in the employees being made redundant.^[8] You’ll normally be entitled to statutory redundancy pay if you’re an employee and you’ve been working for your current employer for 2 years or more.

You’ll get:^[9]

Half a week's pay for each full year you were under 22
One week’s pay for each full year you were 22 or older, but under 41
One and half week’s pay for each full year you were 41 or older

Length of service is capped at 20 years and weekly pay is capped at £475. The maximum amount of statutory redundancy pay is £14,250.

References

Employment
Classifications	Casual Contingent Full-time Part-time Self-employed Skilled Independent contractor Temporary Tenure Unskilled Wage labour
Hiring	Application Background check Business networking Contract Cover letter Curriculum Vitae (CV) Drug testing e-recruitment Employment counsellor Executive search Induction programme Job fair Job fraud Job hunting Job interview Labour brokering Overqualification Onboarding Personality-job fit theory Person-environment fit Probation Reference Résumé Simultaneous recruiting of new graduates Underemployment Work-at-home scheme
Roles	Co-op Employee Employer Internship Job Permanent Permatemp Supervisor Volunteer
Worker class	Blue-collar Gold-collar Green-collar Grey-collar Pink-collar White-collar
Career and training	Apprenticeship Avocation Career assessment Career counseling Career development Coaching Creative class Education Continuing education Continuing professional development E-learning Employability Further education Graduate school Induction training Initial Professional Development Knowledge worker Licensure Lifelong learning Practice-based professional learning Professional association Professional certification Professional development Professional school Reflective practice Retraining Vocational education Vocational school Vocational university Mentorship Occupational Outlook Handbook Practice firm Profession Tradesman Vocation
Attendance	Break Career break Furlough Gap year Leave of absence Long service leave No call, no show Sabbatical Sick leave Time clock
Schedules	Four-day week Eight-hour day Flextime Overtime Retroactive overtime Shift work Telecommuting Working time Workweek and weekend
Wages and salaries	Income bracket Income tax Living wage Maximum wage National average salary World Europe Minimum wage Canada Hong Kong Europe United States Progressive wage Singapore Overtime rate Paid time off Performance-related pay Salary Salary cap Working poor
Benefits	Annual leave Casual Friday Day care Disability insurance Health insurance Life insurance Parental leave Pension Sick leave Take-home vehicle
Safety and health	Epilepsy and employment Human factors and ergonomics Industrial noise Protective clothing Occupational burnout Occupational disease Occupational exposure limit Occupational health psychology Occupational injury Occupational stress Repetitive strain injury Sick building syndrome Work accident Occupational fatality Workers' compensation Workplace phobia Workplace wellness
Equality	Affirmative action Equal pay for women
Infractions	Corporate abuse Accounting scandals Corporate behaviour Corporate crime Control fraud Corporate scandals Discrimination Dress code Employee handbook Employee monitoring Evaluation Labour law Sexual harassment Sleeping while on duty Wage theft Whistleblower Workplace bullying Workplace harassment Workplace incivility
Willingness	Civil conscription Conscription Dead-end job Extreme careerism Job satisfaction Organizational commitment McJob Refusal of work Slavery Bonded labour Human trafficking Labour camp Penal labour Peonage Truck system Unfree labour Wage slavery Workaholic Work aversion Work ethic Work–life balance Downshifting Slow living
Termination	At-will employment Dismissal Banishment room Constructive dismissal Wrongful dismissal Employee exit management Exit interview Layoff Notice period Pink slip Resignation Letter of resignation Restructuring Retirement Mandatory retirement Retirement age Severance package Golden handshake Golden parachute Turnover
Unemployment	Barriers to Employment Depression Great Depression Long Depression Discouraged worker Frictional unemployment Full employment Graduate unemployment Involuntary unemployment Jobless recovery Phillips curve Recession Great Recession Great Recession job losses List of recessions Recession-proof job Reserve army of labour Types of unemployment Unemployment Convention Unemployment benefits Unemployment extension Unemployment insurance Unemployment rates Employment rates Employment-to-population ratio Structural unemployment Technological unemployment Wage curve Youth unemployment
See also templates Aspects of corporations Aspects of jobs Aspects of occupations Aspects of organizations Aspects of workplaces Corporate titles Organized labor

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