Is It Termination or Relieving? Seeking Clarity on Ending Employment After a Project

We have undertaken a project, and it is going to end. So, I issued a Notice of Termination to three employees. However, a few of my colleagues argue that I can't mention the word "termination" in this. They are telling me that it is not termination, but relieving. I explained that the employee is not being relieved but that it is us who are sending them home due to the closure of the project. Who is right? HELP!

The word "termination" can be used, and you are not wrong. However, in the current scenario of the job market, "termination" as a word has a negative impression. "Lay-off" is the more appropriate term you can use to avoid any negative connotations.

Please refer to the link: Termination of employment - Wikipedia, the free encyclopedia

What were the employees told before the commencement of this project? What's the duration of this project? Is there any Letter of Appointment/Contract between them and the company? If yes, what do they mention about this aspect?

Regards,
TS

If the appointment is on a contract basis, it may be mentioned as "end of contract." The word "termination" may be avoided.

Pon

No, definitely not! TERMINATION can't be used here, but "permanently laid off" can. I don't think there is a need to explain when and why we use TERMINATION or what conditions apply in this regard, but certainly, we can't use this "Termination."

I second Mr. Ponraj. Is the employment letter containing a condition that you can terminate any employee if required after the completion of the project/work/contract? What does the notice period clause say about it? Do you have any Lay-off Policy?

I agree with your colleagues who are objecting to this word because employees have done nothing wrong that can be the reason for their termination, but you are relieving them with your reasons. You can issue them a "Lay-Off Notice" mentioning the reason that you are going to relieve them but can't terminate them.

I don't think there is any organization that is using this kind of terms and conditions of employment in an employment/appointment letter that any EMPLOYEE CAN BE TERMINATED without any mistakes or being a reason for some disciplinary action or anything like that.

But yes, if you are using this word within your employment policy and under the employment conditions, which is really sad, I would say and must not be used, you can go ahead but need to correct it actually.

The term 'Termination' has negative connotations, and in the context of project-based appointments, which generally are fixed-time employment contracts, it is inappropriate. Assuming that you had issued a Fixed Term Contract (FTC) letter to them containing a specific clause stating that the contract/employment will come to an end on the date when the project is completed, then what you are communicating to them is only a formal intimation of the contract having come to an end.

You can word this letter as follows: "In terms of the clause --- of your contract letter, it is being intimated to you that your period of fixed-term appointment will come to an end/ended w.e.f. (date) on the close of working hours." Legally, this wording also aligns well with the current practice, apart from sugar-coating the action of termination.

Regards, Vinayak Nagarkar HR Consultant