Employee Termination Best Practices

Terminating an employee can be a very difficult experience. In fact, it is the time when the employer may be exposed to the greatest amount of legal liability. Here are a few “best practices” to limit an employer’s liability exposure when terminating an employee:

• Consult with an attorney prior to termination to explore potential liabilities and claims an employee might bring;

• Make sure any policy manuals clearly state employment is at will, and have the manual periodically reviewed by an attorney

• Establish discipline and termination policies in advance and follow them;

• Train managers on your policies and make them accountable for compliance;

• Document discipline and reprimands objectively and thoroughly;

• All warnings should be in writing and signed by the employee

• Clearly state consequences of future misconduct and follow through on all threats;

• Treat terminated employees with as much dignity and respect as possible, avoid security escorts out of the building or other embarrassments;

• Tell the employee why he/she is being fired. Be truthful and don’t candy coat the reasons for termination;

• Promptly pay all compensation owing, including vacation pay, bonuses and commissions;

• Adopt and follow a neutral reference policy.

Terminating an employee can be trying. However, if these best practices are followed an employer can greatly reduce its liability exposure and increase the likelihood of successfully defending a law suit.

DISCLAIMER: The above article is intended for informational purposes only, is not intended to be legal advice, and does not create an attorney-client relationship with the reader.