Employee Termination Policy

Employee Termination Policy

Company Name: [Company Name]
Effective Date: [Effective Date]
Policy Owner: [Policy Owner]
Approved By: [Approved By]
Probation Period: [Probation Period]

PURPOSE & SCOPE
- This policy defines the Organization's framework for managing involuntary termination of employment, ensuring that all termination decisions are made fairly, consistently, and in compliance with applicable employment laws.
- This policy applies to all employees of the Organization regardless of employment type or grade. Termination of independent contractors and consultants is governed by their respective service agreements.
- No employee shall be terminated without the prior written approval of the HR department and the relevant authority as defined in the Organization's termination approval matrix.

GROUNDS FOR TERMINATION
- Termination for cause may be initiated when an employee engages in serious misconduct, including but not limited to fraud, theft, harassment, insubordination, breach of confidentiality, or violation of the Organization's code of conduct.
- Termination for poor performance may be initiated after the employee has been placed on a formal Performance Improvement Plan and has failed to meet the defined performance standards within the specified remediation period.
- Termination during the probationary period may be effected with a shorter notice period as specified in the employment agreement, provided the employee has received documented feedback about performance concerns during the probation.
- Termination due to redundancy or business restructuring shall be managed in accordance with the Organization's Layoff and Retrenchment Policy and applicable statutory requirements regarding consultation, selection criteria, and severance.

TERMINATION PROCESS & PROCEDURAL SAFEGUARDS
- Before any termination is effected, the HR department shall conduct a thorough review of the case to verify that all procedural requirements have been met, that documentation is complete, and that the termination is consistent with the Organization's past practices.
- The employee shall be given a reasonable opportunity to respond to the allegations or performance concerns before a final termination decision is made, except in cases of gross misconduct where immediate suspension pending investigation is warranted.
- The termination meeting shall be conducted by the HR department in the presence of the employee's manager. The meeting shall be handled with professionalism and sensitivity, and the employee shall be provided with a written termination letter detailing the effective date and final settlement terms.

SEVERANCE & FINAL SETTLEMENT
- Employees terminated without cause or due to redundancy shall be entitled to severance pay as defined in their employment agreement, the Organization's severance schedule, or applicable statutory requirements, whichever is most favourable.
- The final settlement shall include all outstanding salary, accrued and unused leave encashment, pro-rated bonuses where contractually required, severance pay where applicable, and any other amounts due under the employment agreement.
- Where the Organization offers a separation agreement in connection with a termination, the employee shall be given a minimum of 21 calendar days to review the agreement and 7 calendar days to revoke their acceptance after signing.

APPEALS & POLICY COMPLIANCE
- An employee who believes their termination was unjust or procedurally deficient may file a written appeal with the Head of Human Resources within 10 business days of receiving the termination notice.
- Managers who initiate or execute a termination without following the procedures prescribed in this policy shall be subject to disciplinary action, including formal counselling, written warning, or further sanctions as appropriate.
- This policy shall be reviewed at least annually by the policy owner in consultation with Legal Counsel to ensure continued compliance with evolving employment legislation and alignment with the Organization's business practices.