What is it called when an employee is let go from their job due to misconduct?

Study for the NCEA Level 1 Business Studies Test. Engage with interactive questions, complete with hints and detailed explanations. Prepare effectively for your exam!

When an employee is let go from their job due to misconduct, the correct term is dismissal. Dismissal occurs when an employer terminates the employment relationship because of the employee's actions, which can include violations of workplace policies, inappropriate behavior, or other forms of misconduct. This process often requires a clear set of grounds for the termination, which justifies the employer's decision to dismiss the employee.

Although "termination" might seem like a synonymous term, it is broader and can refer to any end of employment, including voluntary resignations or layoffs. Terms such as "resignation" refer explicitly to when an employee chooses to leave their position on their own terms, while a "layoff" generally involves temporary or permanent dismissal due to economic reasons rather than personal misconduct. Hence, the specific terminology of dismissal accurately captures the situation where misconduct is the reason for ending an employee's role.

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