Professional in Human Resources (PHR) Practice Exam

What is the definition of involuntary termination?

1. Voluntary resignation due to poor morale

2. Employee dismissal due to economic reasons

3. Discharge of employees for specific causes

4. Termination following a mutual agreement

The correct answer is: Discharge of employees for specific causes

Involuntary termination refers to the discharge of employees by the employer for specific causes without the employee's consent. This can include reasons such as misconduct, poor performance, violation of company policy, or other grounds that do not require the employee's agreement to terminate their employment. The key aspect is that it is initiated by the employer and is generally based on a failure to meet job expectations, compliance issues, or organizational needs. While options like voluntary resignation and mutually agreed termination are more about the employee's choice or agreement, involuntary termination specifically emphasizes the employer's authority to end the employment relationship without the consent of the employee. Economic dismissals may contribute to an involuntary termination scenario, but those are often based on organizational needs rather than specific individual causes. Thus, the correct choice highlights the nature of termination driven by the employer's decision based on identified issues with an employee's performance or behavior.