What is the meaning of termination in law?

Asked by: Patsy Roob  |  Last update: February 14, 2026
Score: 4.2/5 (21 votes)

In law, termination means the formal ending of something, most commonly an employment relationship or a contract, which can happen voluntarily, involuntarily (like a layoff or firing), or by mutual agreement, ending obligations but not past liabilities, with specific legal rules for fairness and anti-discrimination. It signals the conclusion of a legal arrangement, with procedures and rights for both parties, whether it's a job, a lease, or a business deal.

What are the three types of termination?

The three main types of employment termination are Voluntary (employee quits), Involuntary (employer fires for cause like poor performance/misconduct, or without cause like layoffs/downsizing), and often grouped as a third, Mutual Termination, where both parties agree to end the relationship, or sometimes Job Elimination (like a layoff/RIF) is listed separately. These categories cover the spectrum from an employee's choice to leave, an employer's decision to dismiss for reasons related to the employee or business needs, to a shared agreement to part ways, notes Paychex, AIHR, and Columbia University https://universitypolicies.content/termination-employment.
 

What is the legal definition of terminate?

1. last step of employment where a worker is let go. 2. Customer cancellation of remaining work of a contract. See termination for default and termination for convenience.

What happens when terminated?

Typically, it states that the employer will provide a terminated employee with a severance package in exchange for the employee's promise that he or she won't sue the employer. A severance package may include a lump sum payment, health insurance, continuing payments and outplacement program services.

What happens in case of termination?

Settle the severance pay

One month's salary must be paid to employees who have worked for a year or more. For mass termination in protected sectors, three months of wages must be offered to employees. Code on Social Security, 2020 entitles employees to gratuity payment after one year of continuous service.

Employee rights in case of termination - by Adv. Anupam Tripathi - Employees & Labours जरूर देखें..

30 related questions found

What happens when a case is terminated?

When a criminal case is dismissed, it means the charges are formally dropped and the case will not move forward to trial, at least at that point in time. A dismissal is not the same as an acquittal. An acquittal happens when a trial takes place, and the judge or jury finds the defendant not guilty.

What are the consequences of termination?

Ramifications of Termination

Termination extinguishes primary obligations completely for indivisible obligations and partially for divisible ones. Ancillary obligations, including penalty clauses, arbitration clauses, exclusion clauses, and the obligation to pay damages, may endure even after termination.

Can a termination be reversed?

If your employer decides to reverse the decision to terminate you, and if you decide you would like to return to the job, the termination can be reversed. You may also have a right to appeal your termination in certain circumstances.

Does terminated mean permanent?

Terminated Meaning — FAQ

It means your employment has ended. This can happen voluntarily (you resign) or involuntarily (your employer ends the job), depending on the situation.

What is the legal definition of termination?

Termination can sometimes simply mean that both parties mutually agree to nullify the contract. However, it is often used when one party has not fulfilled their side of the agreement, there has been a contract breach, or one of the parties has acted fraudulently.

Why was my case terminated?

Because the prosecutor filed the charge, they also have the discretion to dismiss it if they believe the facts and circumstances warrant it. Likewise, a judge can dismiss the case if they find no legal basis for the charge, if the defendant's rights have been violated, or if the state has failed to prove its case.

What are my rights during termination?

If you are fired or laid off, your employer must pay all wages due to you immediately upon termination (California Labor Code Section 201). If you quit, and gave your employer 72 hours of notice, you are entitled on your last day to all wages due.

What are 5 reasons for termination?

Five common reasons for employee termination include poor work performance, misconduct (like harassment or theft), insubordination (refusing to follow orders), attendance issues (chronic lateness/absences), and violating company policy, with other major reasons being substance abuse, safety violations, or breach of confidentiality, often categorized as termination "for cause". 

What are you entitled to if you are terminated?

Severance pay

A terminated employee may be entitled to more than the minimum amount of termination notice or pay required under employment standards legislation. This is often referred to as severance pay. Severance pay is determined under common law and not required under the Employment Standards Code.

What are examples of unlawful termination?

Wrongful termination examples include firing someone for discrimination (race, gender, age, disability), retaliation (whistleblowing, reporting harassment, FMLA leave, workers' comp), violating public policy (refusing illegal acts, jury duty), or breaching an employment contract, often involving an illegal reason rather than just unfairness.
 

Is it difficult to win a wrongful termination case?

Even when there are indications of unlawful actions, proving a case can be difficult without sufficient evidence, whether it be documentation or witness testimony. As a result, only a small percentage of wrongful termination claims move forward successfully.

What is the rule for termination?

To ensure a legally compliant termination process in India, employers must: Ensure a valid reason for termination is well-documented. Provide written notice of termination as per applicable laws and contract terms. Conduct a fair inquiry for dismissals related to misconduct.

How to prove you were terminated?

Evidence can be in the form of your testimony, witness statements, “me too” victims, documents, communications, and recordings. Evidence of a particular pattern, practice, and policy may also be relevant.

Is termination always bad?

Whether the termination was lawful or not, there is no question that a termination is a difficult experience, one that can have lasting consequences that can be both bad and good. For some people, the termination of their employment turns out to be a good thing.

How does termination happen?

A termination with cause happens when an employer ends a role because of serious issues like stealing, lying, or poor performance that doesn't change despite multiple warnings. A termination without cause can happen for almost any reason as long as no discrimination or illegal behavior was involved.

What are the grounds for termination?

Insubordination and related issues such as dishonesty or breaking company rules. Attendance issues, such as frequent absences or chronic tardiness. Theft or other criminal behavior including revealing trade secrets. Sexual harassment and other discriminatory behavior in the workplace.

Who pays court costs if a case is dismissed?

Generally when a case is dismissed cost to Defendant it is pursuant to some agreement between the Defendant and the prosecutor and the Defendant would sign off agreeing to the court costs. If the prosecution unilaterally dismissed, the costs should be assessed to the State.

What does "terminated" mean in law?

Termination is an ending of something, for example employment (such as a layoff), that is not a voluntary resignation. [Last reviewed in June of 2024 by the Wex Definitions Team]

Can a judge reopen a case that was dismissed?

A case dismissed by a judge may be reopened, depending on the reason and whether the dismissal was with or without prejudice. For instance, if the dismissal was based on procedural issues or lacked prejudice, there may be a chance to file a motion to reopen.