Are You Misusing These Commonly Used HR Terms?

  • HR
incorrect HR terminology
Neale Harrison Peninsula Canada

Neale Harrison, VP Employment Services

(Last updated )

Employers are obligated to know and understand the correct and legal terms used in relation to employment and HR. There are times, however, when similar or incorrect terms become more known or used than the official terms, and meanings can sometimes get lost in translation. This can lead to misunderstandings between employers and employees, and in some cases, legal claims.  

In this blog, we explore some of these popular terms, the similar terms that are sometimes used in place of the correct terms, and the legal meaning of both. Having a clear understanding of both terms will help you know which is suitable for each situation.  

Termination vs Temporary layoff 

Termination occurs when an employment relationship ends. Alternate terms that can also be correctly used include, “let go,” “discharged,” “fired,” or “permanently laid off.”  

 A person’s employment is terminated when:  

  • Their employer stops or dismisses their employment 
  • Constructive dismissal (sometimes called quitting-with-cause) – occurs when an employer has not directly fired an employee but fails to comply with the stipulations of the contract or changes the employment terms in a major way that forces the employee to resign in response.  
  • An employee has been permanently laid off  
  • An employee resigns 

Temporary layoffs are meant to be temporary and occur when an employer reduces or stops an employee’s work without ending their employment with the intention of recalling the employee to work in the near future.  

Rules for temporary layoff vary from province to province. For example, in Ontario, a temporary layoff can last up to 13 weeks within a 20-week period or up to 35 weeks within a 52-week period only in certain circumstances, such as if the employee continues to receive substantial payments or benefits.  

If a layoff exceeds the maximum time permitted under the employment standards law, it is considered a termination of employment. 

Severance pay vs Termination pay 

Severance pay is reserved for employees who have worked for five or more years with an employer. The five years do not have to be consecutive but must include all the time the worker spent in your employ. 

Termination pay is given in place of, or along with the required notice of termination. Termination pay will vary depending on the length of service. 

Reference checks vs employee verification 

An employer or hiring manager may contact a candidate's former workplace to get more information or clarification on the candidate's former role and skills. Reference checks are used to verify that the candidate has the skills and experience necessary for the role being filled. Employers may also sometimes inquire about overall performance. 

Former employers may be hesitant to provide employee references, hence some may offer employee verification instead.  

Employee verification simply confirms a candidate's work role and experience or present job status in the company. It typically will not include details on performance but will verify timelines and confirm titles and reporting hierarchy. 

Performance review vs performance management 

Usually, a performance review is a formal, regulated assessment that allows managers and other key stakeholders to evaluate an employee’s performance over a period. Performance reviews are used to learn more about employee’s strengths and weaknesses, provide feedback on the period being assessed, discuss possible performance bonuses (if relevant), and set goals for the next period. 

Performance reviews happen in increments, performance management involves an ongoing, continuous process of communicating, evaluating, and investing into an employee’s growth and development. Performance management is a long-term process and is a tool used to optimize an employee’s performance. It is also used in organizations where employers are interested in nurturing talent and reducing turnover. 

Implications of using incorrect HR terminology  

Though these terms are sometimes used interchangeably, as an employer, it is best to know the correct terminologies, and suitable context for use. It is also your responsibility to educate your employees about these terms, to minimize confusion in communication.  

Need advice on complex HR matters?  

Peninsula is here to help simplify your HR processes. Our experts can help you with any HR issues you may have, as well as develop company policies, including policies to track employee performance. We also provide expert health and safety advice to keep you compliant and help protect your business from fines. Contact us today 1 (833) 247-3652 to learn more.  

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