- Notice Period
- The amount of time between delivering the notice and the effective termination date, as required by the contract or applicable law.
- Effective Date
- The specific calendar date on which the termination takes legal effect and the relationship formally ends.
- Termination for Cause
- Ending a relationship due to a specific documented breach, misconduct, or failure β typically without a notice period or severance obligation.
- Termination Without Cause
- Ending a relationship for reasons unrelated to misconduct β restructuring, budget cuts, or strategic change β usually requiring notice or pay in lieu.
- Pay in Lieu of Notice
- A lump-sum payment made to the terminated party instead of requiring them to work through the notice period.
- Final Pay
- All wages, accrued vacation, and outstanding expense reimbursements owed to an employee as of their last day of work.
- Severance
- Compensation paid on top of final wages upon termination, typically calculated as a number of weeks' pay per year of service.
- At-Will Employment
- An employment arrangement, common in most US states, where either party may end the relationship at any time for any lawful reason without requiring advance notice.
- Release of Claims
- A document signed by the terminated party waiving the right to sue, often required before severance is paid.
- Constructive Dismissal
- When working conditions are changed so significantly by the employer that the employee is effectively forced to resign β treated legally as termination in many jurisdictions.