What is Pink Slip?
Pink slip is a term used to refer to a notice that is given to an employee for dismissal. It is basically an official notification. The notice states that the employee has been eliminated from the services and that his services are no longer required.
It is usually accompanied by a severance check, which may be placed under the employee’s name or may be given to the employee’s spouse or domestic partner.
The term pink slip is used so commonly as it is an American expression. If you look at pink slip meaning, it is used to describe termination notice given by an employer to an employee.
Why are pink slips necessary?
Well, first of all, they help to ensure that employees are aware of their employment status. Secondly, pink slips can help to protect employers from potential lawsuits. And finally, they can help to provide a paper trail documenting the termination of an employee.