What is the term used to describe the act of terminating an employee's contract of employment?

The term used to describe the act of terminating an employee's contract of employment is "dismissal." Dismissal typically refers to an employer's decision to terminate an employee's employment, usually due to issues such as poor performance, misconduct, or redundancy, and often follows a formal process as outlined in company policy or employment law.

In contrast, separation generally refers to the broader concept of ending the employment relationship but does not specify the nature of the termination—whether it was voluntary or involuntary. Resignation, on the other hand, is when the employee voluntarily chooses to leave their job, which is distinct from dismissal. Lastly, a layoff typically refers to a temporary or permanent cessation of employment due to economic conditions or organizational restructuring, rather than a repudiation of the employee's contract for reasons involving their performance or behavior. Thus, dismissal specifically captures the act of an employer terminating an employee's contract.