Termination Policy Template

Termination Policy

Purpose of Termination Policy

This Termination Policy sets out the principles and processes used by [Company Name] when employment ends. The policy exists to ensure terminations are handled consistently, professionally, and with respect for the rights and dignity of employees, while protecting the legitimate business interests of [Company Name].

Scope

This policy applies to all employees, including full time, part time, temporary, and contract workers employed or engaged by [Company Name], unless a separate agreement or policy specifically applies.

Types of Termination and General Rules

• Resignation: Employees are asked to provide written notice of resignation. The customary notice period is stated in employment agreements or company practice. Managers may accept a shorter or longer notice period where operational needs require an agreement between the employee and manager.
• Termination by Employer: Termination may be for cause or without cause. Termination for cause will follow an appropriate investigation and documentation. Termination without cause may be used for performance, conduct, or operational reasons and will follow the approval process below.
• Redundancy or Reduction in Force: Business restructuring that results in job elimination will follow objective selection criteria and will include consideration of alternatives to termination where practicable.
• Mutual Agreement: Employment may end by mutual agreement with terms recorded in writing.

Notice, Severance, and Final Pay

Notice periods, severance entitlements, and final pay will be provided as set out in the employee’s contract, company policies, and applicable requirements. Final pay will include earned wages, unused accrued vacation or paid time off where applicable, and any other amounts due according to company policy. Where applicable, benefits continuation and timing of benefit termination will be communicated to the employee.

Offboarding and Return of Company Property

Employees leaving [Company Name] must complete the offboarding process, which generally includes:

• Returning company property such as keys, ID cards, devices, and documents
• Revocation of system access and collection of credentials
• Completion of an exit interview where practicable
• Confirmation of forwarding address for final pay and tax forms

Documentation and Recordkeeping

All termination actions and supporting documentation must be maintained in the employee’s personnel file. Documentation should state the reason for termination, notices given, approvals obtained, return of property, and any settlement terms. Records will be retained in accordance with company record retention practice.

Approval Process

Requests to terminate employment, exceptions to standard notice or severance practices, and proposed termination settlements require prior review and approval by HR and the relevant approving manager. Approvals should be documented in writing. Where termination follows a disciplinary process or performance management, HR must review the case file before termination decisions are finalized.

Role of Managers and HR

• Managers are responsible for initiating termination requests, documenting performance or conduct issues, conducting exit conversations professionally, and ensuring return of company property.
• HR is responsible for advising on applicable policy, reviewing documentation, ensuring consistent application of the policy, coordinating approvals, preparing termination paperwork, communicating final pay and benefit impacts, and conducting or arranging exit interviews.

Non-Compliance

Failure to follow this policy may expose [Company Name] and individuals to operational, financial, or reputational risk. Non-compliance with required approval or documentation procedures may result in disciplinary action for managers or employees responsible for the omission. HR will review non-compliance incidents and recommend corrective measures.

Note

This policy may be updated periodically to reflect business needs or changes in practice. Employees should consult HR for clarification about how this policy applies to a specific situation or for assistance during the termination and offboarding process.