What Is Voluntary Termination?
You might come across the term voluntary termination in different contexts, but it most often means an employee's own choice to quit a job. This is different from situations where the employer decides, like in a layoff or firing.
It can also mean voluntarily ending personal financial agreements, such as a car lease or cell phone plan, or even larger institutional ones like credit default swaps and interest rate swaps.
Understanding Voluntary Termination
When an employer initiates termination, it could be a layoff, firing for cause, or downsizing. But if it's employee-initiated, that's voluntary termination. You might decide to leave for many reasons, like family needs, going back to school, or issues at work such as a difficult boss, no recognition, or lack of challenge.
A frequent reason is moving to a better job with higher pay or prospects, which happens more in good economic times than during recessions. In tough times, companies downsizing might encourage voluntary resignations by offering better packages, like extra severance or extended health benefits, to avoid more layoffs.
If you voluntarily leave, you usually won't get unemployment benefits unless it's for a good cause, like unsafe conditions, and this varies by location. Remember, people often leave supervisors, not jobs, due to conflicts in style, respect, or communication.
The Process Involved in Voluntary Termination
If you're voluntarily terminating, it typically starts with telling your supervisor verbally or in writing. Failing to show up for three days without notice might be seen as job abandonment.
You should give at least two weeks' notice—it's professional and gives the company time to find a replacement while you prepare to leave. Once you submit your resignation, expect your supervisor to send it to HR with your end date and reason.
HR will then handle returning company property, final expenses, benefits summary, and an exit interview. Supervisors might fill out a termination summary for HR.
Special Considerations
Voluntary termination isn't just for jobs; it can mean canceling a financial contract, like a cell phone plan. You might face penalties, but if the benefit outweighs the cost, it could make sense.
Key Takeaways
- Voluntary termination is your decision to leave a job or end a contract early.
- It's not the same as being fired, laid off, or downsized, since you make the call, not the employer.
- Some companies in downsizing offer better exit packages for voluntary resignations to cut down on layoffs.
- Ending a contract early, like with an internet provider, counts as voluntary termination too.
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