HR

How to Terminate an Employee

February 20, 2023
Brand's Paycheck

Firing an employee is uncomfortable, no matter the scenario. To avoid wrongful termination and anti-discrimination lawsuits, consider the below steps and notes on a legal termination.

What is Wrongful Termination?

In firing an employee, a company has breached an employment contract or public law. Consider the below as examples of wrongful termination.

·        Discrimination based on race, nationality, ageism, sex, sexual orientation, disability, religion, gender identity, or military status.

·        Retaliation despite a protected action taken by the employee. For example, "whistleblowers" are protected under the law.

If your documentation slightly leans in any of the above, there may be grounds for legal action by the terminated employee.

Documentation, Documentation, Documentation.

The most important confirmation of a legal termination is documentation. This is key towards moving a termination forward without a hiccup.

Real-time collection of records should include one or more of the following reasons:

·        Less than satisfactory performance.

·        Unexpected business downturn.

·        Morale affecting interpersonal conflict.

Examples of supporting evidence are performance reviews, write-ups, HR meeting minutes, or management observation notes. If an employee was not offered an opportunity to speak or improve upon infractions, this might weaken the termination decision.

Policy Violation

If documentation linked to a policy violation is to hold water, include evidence such as surveillance cameras, timecards, and peer/managerial complaints. Furthermore, a signed handbook and job description covering the infraction further support the decision to terminate.

Poor Performance

If an employee performs below expectations continuously, despite schedule devaluations, constant communication with the employee, and proper training, then you have a good case. The data you have compiled from these meetings and noted employee output metrics would support the decision to terminate without the inference of wrongful termination.

Mandated Paperwork

Once the above has been proven to support a valid termination, gather the paperwork below and the relevant documents.

·        Termination Letter.

·        Termination/Severance Agreement.

·        Benefits Information.

·        Unemployment Information.

·        Review additional state requirements, as they vary.

·        Final Paycheck.

Next Steps

After confirming the legality of the termination and preparing the above paperwork, follow the steps below:

1.      Prepare copies of the paperwork.

2.      Review the termination script to cover all necessary details.

3.      Prepare interim protocol until there is a replacement.

4.      Request the presence of an HR manager or upper management supervisor to witness the meeting.

5.      Invite the employee to a private meeting away from coworkers.

6.      Begin your termination script and provide the employee with the paperwork.

7.      Answer all questions, unrushed.

8.      Quietly and respectfully allow the employee to gather their things, return company property, receive final payment, and exit the premises.

As this is a sensitive situation, reactions may vary. Remain calm and resolute. If the employee refuses to leave after some coaxing, request assistance from your building's security or call the local authorities.

Aftermath

After the employee has signed the paperwork and left, more must be done.

1.      Communicate the termination to the office.

2.      Designate an employee to continue vendor, client, or business communications. If a manager, their employees will need to report to someone in the interim.

3.      Clean out old work area.

4.      Remove all former employee accesses.

5.      Confirm severance/benefits agreements.

6.      Continue business operations.

The show must go on! Once you have completed and filed the termination, review any opportunities for updates to your company's handbook, protocols, etc. Successful people management is to adapt and grow.