Wednesday, August 25, 2010

Employee Termination 101

One reality of running a business is that occasionally an employee needs to be terminated. Whether it be performance, incompatibility, or any number of other issues, there will come a time when a business owner is faced with this challenge. Preparation is key to firing an employee and avoiding facing legal problems down the road.

Documentation, Documentation, Documentation


You can NEVER have too much documentation. What location is to real estate, documentation is to termination. Document the employee’s performance over time and provide feedback in full detail. Make sure you have an employee handbook and you follow the guidelines with each employee equally. If you document everything, there will be no questions in the end.

Is that your final answer?

You have thought long and hard about your decision to fire an employee. There will be a rush of emotion when you tell them the news. Grief and anger are a few to name BUT hold your ground. Give honest answers while avoiding any and all debatable issues. Do not apologize for your decision but offer explanations of the termination without creating a long discussion. Misleading the employee into thinking they have one last chance will only cause you more of a headache in the end.

Firing via Social Media or Text

Face-to-face is the best and ONLY way an employer should terminate an employee. Trash any and all electronic methods of termination (i.e. Facebook or text messaging). When you fire an employee, give them the courtesy you would extend to any other person and avoid any and all accusations of defamation. You might want to scribble this one down for break-up tips as well.

Firing without Warning

Firing without warning can be one of the biggest downfalls for an employer. As said earlier, documentation is key to firing and can become your biggest defense in a legal issue. Blindsiding your employee with a surprise can lead to an overwhelming amount of emotion that you do not want in your work place.

Can I get a witness?

Employment termination is a hot topic in court these days and definitely not the place you want to find yourself. ALWAYS have a witness in the room with you before you begin the termination process. Most employers would rather have an employee from HR, but any witness is better than no witness. Keep in mind that anyone can sue anyone these days and your witness’ testimony for the events of the meeting could quite possibly be your defense in court.

What’s mine is mine and what’s yours is yours.

During the termination meeting, ask that the employee hand over all company property from cell phones to passwords. Accompany the employee to their desk in order to gather necessary items. If the employee has company property outside of the workplace, make documented and solid plans for when you expect them returned. Give the employee an explanation of how long they have to gather their personnel belongings and leave the premises. Following the termination, minimize the contact the former employee has with other employees at the work site. If the former employee is upset, schedule another time for them to come in and get their personal belongings.

Confidentiality

Keep all employee records and termination paperwork private. It is appropriate to let the company know the employee has left, but make sure to reassure them that their jobs are not in danger. Keep all conversations about the employee’s termination confidential as well.

Reflect


After the termination, review and reflect over the process. Was everything documented appropriately? Were all termination policies followed according to your company’s standards? Do any alterations need to be made for a smoother transition? All of these are things you should ask yourself.

Cover each base by documenting everything and preparing an appropriate termination process that your company can follow. Be consistent and remember: Documentation, Documentation, Documentation!

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