Terminated Meaning Explained: A Complete Guide for Job Seekers

by Hiration

The word termination is generally taken with a negative connotation to it in the professional world.

However, being terminated from a job doesn’t necessarily mean that you were fired or kicked out of your job.

According to the U.S. Bureau of Labor  Statistics (BLS), in 2023, about 1.4 million workers were separated from their jobs due to layoffs or discharges, with many attributed to business conditions rather than individual fault.

Oftentimes,  being terminated from a job could be due to reasons that aren’t under your control or it is simply because the term of the contract with the company you’re working for ended.

Read on to get clarity on terminated meaning and FAQs related to it.

Terminated Meaning

Termination of employment refers to the end of a work contract or term between an employee and a company.

And while some use the word termination synonymous with being fired, that is not always the case.

An employee can be terminated from a job for multiple reasons like wrongful termination, furlough, redundancies, job performance, downsizing, etc.

And depending on the location and its prevalent state employment laws, terminated employees are entitled to a final paycheck within 24 to 72 hours post-termination.

Additionally, based on the terms of employment, terminated employees can also be entitled to severance pay according to the Fair Labor Standards Act (FLSA).

Also Read: What should you do next if you were laid off from your job?

Voluntary Termination Meaning

Voluntary termination can be defined as resignation or when an employee willingly terminates their employment with an employer for various reasons.

Apart from getting better opportunities, an employee can choose voluntary termination when he/she isn’t left with any other choice.

For instance, when the work environment is toxic, or the employee faces harassment or difficult working hours with less pay, the employee is left with no other choice than to hand in their resignation.

Such scenarios are also known as constructive dismissal.

Also, if a staff member is handing in a voluntary resignation, they must provide advance notice to their employers verbally and in writing.

Depending on the terms of employment, the notice period can vary anywhere from 2 weeks to 3 months.

The Consolidated Omnibus Budget Reconciliation Act (COBRA) also qualifies employees for health insurance coverage under an employee’s current group health plan for around 18 months post-resignation.
Also Read: How to explain your reasons for leaving a job during an interview?

Involuntary Termination Meaning and Types

Involuntary termination occurs when a worker is let go from the job at the hands of the employer due to poor performance or other reasons that might or might not be due to the fault of the worker.

Unlike voluntary termination, involuntary termination can be classified into various types,  depending on the reason for termination.

Given below is a breakdown of the different types of involuntary termination:

Layoffs and/or Downsizing

Unlike workers who are fired, layoffs happen through no fault of the employee.

Corporations may lay off employees or downsize their workforce to cut down on budget, reduce operating costs, and even restructure their business.

A report from KRQE found downsizing or layoffs account for nearly 40% of involuntary terminations, often due to economic or structural reasons

Other reasons for layoffs or downsizing can include the following reasons:

  • Automation of the responsibilities of a role
  • Relocation
  • Mergers & acquisitions
  • Buyouts
  • Business closing
  • Decreased operations
  • Outsourcing options

Getting Fired

A worker is usually fired from a job for the following reasons:

  • Inadequate work performance
  • Bad behavior or a negative attitude
  • Not a cultural match for the organization
  • Unethical conduct and dishonesty
  • Breaches company policies and terms of employment

And depending on the at-will employment laws that are prevalent in the state, an employer can dismiss or terminate a worker without prior warning in case their work performance is not up to the mark or if they violate company policies.

Plus, it is not even mandatory for employers to even provide a reason for firing a working staff member.

Illegal Dismissals

Although the at-will employment laws give a lot of leverage to employers, they cannot fire employees for the following reasons:

  • For declining to work more than the specified hours according to the contract
  • Taking a leave of absence
  • Telling on a colleague or reporting an incident to the higher authorities or HR
  • Whistleblows

In case an employee fires a worker under these scenarios, the employer can face legal action in court and can be liable for wrongful or illegal termination.

Apart from this, other illegal terminations can occur when the company cites discriminatory reasons based on caste, religion, sex, age, nationality, race, and sexual preference for their dismissal.

If found guilty, the employers are entitled to pay compensation to the wronged worker and reinstate them into the organization.

Pro Tip: If you feel that you were wrongly terminated from a job, you can appeal the decision with your employer or the company's human resources department. Ensure that you have copies of your employment contract, your employment file, and proof of communication between you and the employer regarding your performance.
Also Read: How to become a ploy-professional after a lay off?

Termination for Cause

Some companies include a termination-for-cause clause in their terms of employment or contract, which entitles the employee to an improvement schedule of 60 or 90 days within which period they must improve their work performance and prove their worth before the company can fire them.

In case the worker fails to show substantial improvement in their work ethic before the end of this probation period, employers can then dismiss the employee.

Also read: How to explain layoffs and career gaps during interviews?

Termination Compensation

Although the Fair Labor Standards Act (FLSA) doesn’t require employers to offer severance or termination pay to employees who are involuntarily terminated, a few employers do provide the same.

However, employee termination laws can be different for different states and can not only mandate employers to pay a final paycheck immediately but also include unused and accrued vacation days pay to employees who are terminated involuntarily.

Additionally, if the worker is terminated from the job without a fault of their own, they can be eligible for unemployment benefits and financial assistance till they find a job.

Also Read: What are some signs that you should quit your job?

Terminated Meaning - FAQs

  1. What does it mean to be terminated?

It refers to the end of someone’s employment, either voluntarily or involuntarily, depending on the situation.

2. Does terminate mean stop?

Yes. In general usage, “terminate” means to bring something to an end.

3. What is another word for terminate?

Common alternatives include “end,” “conclude,” “cease,” “discontinue,” or “finish.”

4. What do you mean by terminated?

It means something has been brought to an end - in employment contexts, it typically refers to a job being ended.

5. What is the meaning of “terminated” in a job?

It refers specifically to the end of an employee’s position, which may be due to performance, restructuring, or other employment-related reasons.

6. What is the meaning of “terminated” in business?

It refers to the formal ending of a contract, agreement, project, or business relationship.

Also Read: How to assess a company's financial health before accepting a job offer?

Key Takeaways

  • Being terminated from a job doesn’t necessarily mean that you were fired or kicked out of your job. It could be due to reasons that aren’t under your control like budget costs, mergers, etc.
  • An employee can be terminated from a job for multiple reasons like wrongful termination, furlough, redundancies, job performance, downsizing, etc.
  • Voluntary termination can be defined as resignation or when an employee willingly terminates their employment with an employer for various reasons.
  • The Consolidated Omnibus Budget Reconciliation Act (COBRA) also qualifies employees for health insurance coverage under an employee’s current group health plan for around 18 months post-resignation.
  • Involuntary termination occurs when a worker is let go from the job at the hands of the employer due to performance or other reasons that might or might not be due to the fault of the worker.
  • Depending on the at-will employment laws that are prevalent in the state, an employer can dismiss or terminate a worker without prior warning in case their work performance is not up to the mark or if they violate company policies.
  • Illegal terminations can occur when the company cites discriminatory reasons based on caste, religion, sex, age, nationality, race, and sexual preference for their dismissal.
  • If the worker is terminated from the job without a fault of their own, they can be eligible for unemployment benefits and financial assistance till they find their next job.

Navigating job loss or contract endings can feel overwhelming, especially when you’re trying to make your next move quickly and confidently.

If you need professional help polishing your resume, preparing for interviews, optimizing your LinkedIn, or even writing cover letters, Hiration can help you get job-ready faster and present your strengths clearly.

With the right support and guidance behind you, your next opportunity can arrive sooner than you think.