Termination of employment is the end of an employee’s work with a company. An employee may be terminated from a job of their own free will or following a decision made by the employer. Employers who execute a termination of employment may do so for many reasons, including downsizing, poor job performance, or redundancies.

An employee who is not actively working because of an illness, leave of absence, or furlough is still considered employed if the relationship with the employer has not been terminated formally with a notice of termination.