Founders please see detailed instructions here
Voluntary termination is when an employee chooses to leave the company at their will.
In countries without at-will employment, the company may require a statutory notice period to determine the employee's last working day which may impact when an employee’s termination date would take place.
It is possible that an employer may want to release an employee seeking voluntary termination prior to the employer’s potential minimum guaranteed notice at their request. In such scenarios, the employer should check in with the EOR about locally compliant options (though a two week notice is recommended to ensure a smooth transition, see below).
It is also possible that employees may be able to exercise a minimum notice period to determine their termination date. Employers should review the employee’s locally compliant employment contract and seek guidance from the EOR on local regulations.
If there is no notice period included in the employment contract, the employee should provide the company with two weeks' notice to ensure a transition progresses smoothly.
See some examples showcasing considerations regarding the timing of voluntary terminations in the following diagram.
Involuntary termination will take place when an employer terminates an employment due to various reasons such as underperformance, unethical, dishonest, or illegal behavior, making other team members or customers feel unsafe in their work environments, or major strategic shifts in company strategy or financial position.
Involuntary terminations should be handled with care and follow a clear process to ensure that the employee is treated with respect and dignity. It is important to document the reasons for termination and follow any legal or contractual obligations such as providing notice or severance pay. Employers should review the employee’s locally compliant employment contract and seek guidance from the EOR on local regulations.
For founders only: Details on how to initiate a termination can be found here
There is no specific legal definition of "reduction in force" (RIF), but it generally refers to a process by which a company reduces its workforce, often due to financial or strategic reasons. This can involve laying off employees, terminating contracts, or not renewing contracts, for specific functions or company-wide.
Companies undergoing RIFs should consult with employment and legal counsel in planning their separation processes. For example, the WARN Act, and/or other employment laws may need to be taken into consideration.
Communicating a RIF to employees should only be done once all legal and logistical details are completed. All termination paperwork needs to be completed before letting anyone know they have been affected. It’s incredibly important to have a communication plan in order before you make any announcement. For a RIF scenario, your communication plan may include:
See the communication plan section and additional considerations below for more details. **
Additional resources: Cooley’s Checklist for Reductions in Force.