Reasons for Early Termination of Employment


Many jobs will have a probation period lasting several months for new employees. During this period, the employer can often terminate the employment of an employee without giving much of a reason or continuous benefits. The word "termination" covers both employees leaving the company voluntarily and the employer letting an employee go, according to Small Business Notes, but it is typically used to refer to involuntary termination. There can be numerous reasons why an employer decides to terminate an employee early.

Needs of the Business

The business may discover that the job position the employee is currently working is not needed in order to operate the business. While some companies will offer the employee another position in the company, smaller businesses may not have other positions available or may not have the budget to keep an extra employee on the team. Since the employee may have been the last employee to join the team, the employee is often the first one to be let go. The business owner will ensure that the employee knows that the termination has nothing to do with the employee’s performance or abilities, but more about the needs and budget of the business.

Poor Employee Performance

The employer may terminate an employee’s employment because of small details pertaining to poor employee performance. For example, employee tardiness, poor performance on projects and tasks, general incompetence, lack of contributions in teamwork settings, or working slowly and missing deadlines. Poor employee performance does not mean that the employee is breaking any company rules, but can mean that she is not performing as expected. Many companies will provide warnings, but if this happens during the probation period early in the employment phase, the employer may not see the necessity of a warning.

Violation of Company Policies

An employer may also terminate the employment of a new employee if the worker has violated or broken company rules and regulations. Examples of these include lying about education or experience on the resume, being negligent when working with machinery or other employees, violating strict company rules and policies, harassing other workers, violation of safety regulations, stealing from the company, using unauthorized property or tools, damaging company property, or sleeping on the job. Some employers may also fire employees if they have been convicted of a crime or use alcohol or drugs on the job.

Closing of the Business

The business may also terminate an employee because the business is closing, being sold or going bankrupt. The employer may not have an option to terminate the employees, but as with the first section, this termination has nothing to do with the employee’s capabilities, performance level or skills. When a business is sold to a new owner, the new owner may keep some employees on the team, depending on what direction the new business owner wants to take the business.

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