A: Terminating an employee can elicit anxiety in any employer, as a disgruntled employee may file a wrongful termination or unemployment claim. To terminate employment lawfully, consider the following:
EMPLOYMENT CONTRACT
Following the contract’s termination clause will help you to avoid any future claims of wrongful termination.
“AT-WILL” STATE
If the employee does not have an employment con- tract, look at your state’s employment regulations to see whether your state is an “at-will” employment state. (Visit dol.gov/agencies/whd/state/contacts .) This means the employer can terminate an employee for any reason, as long as the termination is not illegal. Discrimination, for example, would be illegal.
That said, some “at-will” states have exceptions to this policy. For instance, many states have a public policy exception that does not allow an employer to terminate an employee for acting in accordance with public policy. An example would be termination for filing a workman’s comp claim or for reporting a violation of law. Another exception is the implied contract: This occurs when an employer has an employee sign an “at-will” employment contract or an employee handbook that states they will only be terminated for cause. Several states consider this an employment contract that prevents the employer from terminating without cause.
PERFORMANCE REVIEWS
Once written, you should follow job expectation and performance policies with every employee.
SUPPORTING DOCUMENTATION
Document every time you or your manager counsel an employee on their poor performance. This documentation should include the behavior you want to correct, the date of the behavior, the steps to correct the behavior and a deadline for when the behavior should be corrected. This corrective action, coupled with a strong performance review system, is powerful in avoiding post-termination issues.
PREPARATION
This means having the termination paperwork filled out before the meeting. It should include previous reprimands or counseling regarding the reason(s) for termination and when final compensation will be given. I suggest this script to avoid discussion: “I appreciate your service to the practice. Based on your performance, we do not think you are a good fit for this position, so we are letting you go.” OM
Disclaimer: The information in this article is provided for general informational purposes only, and may not reflect the current law in your jurisdiction. The information contained in this article is not legal advice, and it is not intended to be a substitute for legal counsel on any subject matter. No reader of this article should act or refrain from acting on the basis of any information included in, or accessible through, this article without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from a lawyer licensed in the recipient’s state, country or other appropriate licensing jurisdiction.
Wrongful Termination By the Numbers
→ $40,000. Average settlement via CoverWallet
→ $45,000. Average cost of trial via CoverWallet
→ $486 million. Amount secured in 2019 by the U.S. Equal Employment Opportunity Commission for victims of workplace discrimination.
CoverWallet is an insurance company for small and medium-sized businesses.