The Employment Termination Policy serves as a crucial governance document ensuring consistent and legally compliant handling of employment separations. It is essential for organizations operating in the United States to maintain clear termination procedures that comply with federal regulations and varying state laws. This policy addresses both voluntary and involuntary terminations, incorporating requirements from key legislation such as the Civil Rights Act, ADEA, and ADA. Organizations should implement this policy to minimize legal risks, ensure fair treatment of departing employees, and maintain proper documentation of termination processes.
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1. Purpose and Scope: Defines the policy's objectives and who it applies to within the organization
2. Definitions: Defines key terms used throughout the policy including types of termination, notice period, etc.
3. Types of Termination: Defines and explains voluntary termination, involuntary termination, retirement, and other separation categories
4. Notice Requirements: Details required notice periods for different types of termination and consequences of failure to provide notice
5. Final Pay and Benefits: Outlines procedures for final compensation, benefits termination, and COBRA notification
6. Return of Company Property: Process for returning company assets, equipment, and documents
7. Compliance Requirements: Overview of legal compliance requirements including federal and state laws governing termination
1. Severance Pay: Details of severance package eligibility, calculation, and payment terms
2. Exit Interview Process: Procedures and requirements for conducting exit interviews
3. Remote Worker Termination: Special procedures and requirements for terminating remote employees
4. Mass Layoff Procedures: Specific procedures and WARN Act requirements for mass layoffs or facility closings
1. Schedule A - Exit Checklist: Comprehensive checklist of steps to be completed during the termination process
2. Schedule B - Property Return Form: Template for documenting the return of company property
3. Schedule C - Final Pay Calculation Sheet: Template for calculating final compensation including unused PTO, bonuses, and deductions
4. Schedule D - State-Specific Requirements: Appendix detailing varying state requirements for termination procedures
5. Schedule E - Sample Termination Letters: Templates for various types of termination notification letters
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