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What Is Considered an Administrative Termination of Employment?

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An administrative termination is a termination of employment without cause. This means that the employee is terminated for administrative reasons as opposed to performance or disciplinary ones. Knowing what an administrative termination is and the reasons behind it opens-up a whole new set of options when being laid-off.


The most common circumstances for administrative termination are prolonged leave of absence, transfer of employment to a new position or diminished need for the position, though other circumstances may apply, depending on the employee's contract.


Administrative termination, unlike disciplinary termination, means that the terminated employee has the ability to apply for unemployment benefits and a can be considered for reemployment.


Though administrative termination is not a "for cause" termination and is understood to be a regular process of business, future employers nonetheless frown on disciplinary action that may be on record with the previous employer.


Any leave of absence which is not covered under the company's leave of absence policy can result, if deemed necessary by the employer, in an administrative termination.


An administrative termination allows the employee to be considered for re-employment and, according to Right Management, "18 percent of laid-off workers are rehired by former employer."