Voluntary Termination

AAA

DEFINITION of 'Voluntary Termination'

1. An employee's decision to leave a job of his or her own accord.


2. The voluntary cancellation of personal financial contracts such as car leases or cell phone contracts


3. The voluntary cancellation of institutional level contracts such as credit default swaps and interest rate swaps.

INVESTOPEDIA EXPLAINS 'Voluntary Termination'

An employee may choose to leave a job for one or more reasons - changes in personal circumstances, dissatisfaction with working conditions, a hostile supervisor and so on. Another common reason for voluntary termination is a new and better job, typically one that offers higher remuneration or improved career prospects. This is more likely to be cited as a reason for leaving a job during periods of strong economic and job growth than during recessionary times.


Voluntary cancellation of financial contracts may or may not incur penalties. In case a penalty will be incurred, the party who wishes to terminate the contract may be able to rationalize the termination decision if the net benefit from terminating the contract is substantially larger than the penalty.

RELATED TERMS
  1. Agreement Value Method

    The most common of three official methods established by the ...
  2. Notice Of Termination

    Generally refers to the notice provided by an employer stating ...
  3. Breakup Fee

    A common fee used in takeover agreements if the seller backs ...
  4. Cancellation Of Debt - COD

    When a creditor forgives a debt without requiring consideration ...
  5. Termination Date

    The day on which a swap contract becomes invalid and no further ...
  6. Swap

    Traditionally, the exchange of one security for another to change ...
Related Articles
  1. Retirement

    Job Hunting: Higher Pay Vs. Better Benefits

    Focusing on salary may be a mistake. Find out which benefits have the highest long-run payoff.
  2. Professionals

    Is Your High-Profile Job Worth The Price?

    Certain careers can be prestigious and lucrative, but there are always costs. Find out if they're worth it.
  3. Home & Auto

    Your Mortgage: When It's Time to Walk Away

    Mathematically speaking, walking away can sometimes be the most prudent choice. Find out how to run the numbers.
  4. Fundamental Analysis

    Are accounts receivable used when calculating a company's debt collateral?

    Learn how accounts receivables are recorded as assets on a balance sheet; they are used when calculating a company's total debt collateral.
  5. Professionals

    What are the main goals of human resources planning?

    Learn about human resource planning, a business strategy that heavily incorporates workforce considerations into long-term objectives.
  6. Professionals

    How are labor demand forecasts made in human resources planning?

    Discover how human resource planning might be used to estimate the correct demand for labor in a given market, both qualitatively and quantitatively.
  7. Professionals

    How do companies measure labor supply in human resources planning?

    Find out how and why a company's human resources department would measure labor supply, and what policies would address a shortage or surplus.
  8. Professionals

    How do fringe benefits help increase employee retention?

    Offering fringe benefits can be a valuable retention tool for employers wanting to maintain a high-quality, highly productive staff.
  9. Retirement

    Are part-time employees eligible for fringe benefits?

    Learn how offering fringe benefits allows employers to entice new talent to join their teams, although part-time workers do not often get these benefits.
  10. Fundamental Analysis

    Why are OTC (over-the-counter) transactions controversial?

    Learn more about over-the-counter transactions, and why OTC traders are considered riskier than traders working with larger market exchanges.

You May Also Like

Hot Definitions
  1. Prospectus

    A formal legal document, which is required by and filed with the Securities and Exchange Commission, that provides details ...
  2. Treasury Bond - T-Bond

    A marketable, fixed-interest U.S. government debt security with a maturity of more than 10 years. Treasury bonds make interest ...
  3. Weight Of Ice, Snow Or Sleet Insurance

    Financial protection against damage caused to property by winter weather specifically, damage caused if a roof caves in because ...
  4. Weather Insurance

    A type of protection against a financial loss that may be incurred because of rain, snow, storms, wind, fog, undesirable ...
  5. Portfolio Turnover

    A measure of how frequently assets within a fund are bought and sold by the managers. Portfolio turnover is calculated by ...
  6. Commercial Paper

    An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories ...
Trading Center