Definition Definition

What Is Pink Slip? Understanding the Pink Slip with Example

What is Pink Slip?

The Pink Slip is a written or verbal notice given to employees who are being terminated or laid-off. It indicates an employee’s termination through a notice or a slip. In most cases, the process of including one with a termination letter in an employee compensation envelope to advise them of their compulsory dismissals or layoff, which is issued or implemented by a human resources department.

Understanding Pink Slip

Dismissal or firing is usually the employee’s fault, whereas a layoff is generally done for business reasons (for instance, a business slowdown or an economic downturn). 

The word 'dismissal' is often considered a reason for an employee's low performance or fault. On the other hand, A layoff is commonly conducted for professional purposes (for example, a corporate recession or an economic crisis) unrelated to the employee's performance.

It's a formal statement. As per the message, the employee has withdrawn from the operations and his activities aren't any longer accessible. It's also a derogatory phrase for comment at the end of a piece. To put it another way, it means you've been fired. In most cases, employees don't feel good or happy about it for obvious reasons.

Practical Example

Anny was a hard-working employee of the company named Harves. She worked there for the past three years and was highly focused on her duties or responsibilities. But for unfortunate reasons, the outbreak of COVID-19 and lockdowns make the company lose its profit because of economic recession. 

Consequently, the company had to cut off most of its employees to be rescued from the expenses. Anny was one of the employees who received the pink slip because of this unfortunate situation.

In Sentences

  • The term pink slip is commonly used to indicate that employees who have received it are basically removed from their job. 
  • People generally feel awkward to directly say that they have been fired to use the term and say that they have received a pink slip

 

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