Why is it the worst employees, the ones that you simply
must fire, are always the ones most likely to sue you?
Many small business owners and Human Resources Managers
find themselves asking this question. They must know how
to terminate an employee while limiting their liability
if the case goes to court. With the sue-happy nation we
live in, it is easy for a terminated employee to bring
a case against you and claim that you had no real ground
for termination. In fact, the employee may claim that you
discriminated against him or her. This can get you in both
financial and legal troubles. Therefore, you must know
how to terminate an employee properly to keep yourself
out of hot water.
How to Terminate an Employee Step 1: Document
The first step you need to take when terminating an employee
is to document everything. You may think that writing down
every little detail is time-consuming and tedious – and
it is. Nonetheless, it is necessary. Pay attention to details
when documenting problems. This can be a life saver if
legal troubles follow the termination. Make sure you write
down everything that took place, including the situation,
the time it took place, and the actions you took to correct
the problem.
How to Terminate an Employee Step 2: Discuss it with the
Employee
In step two, you must discuss the issue with the employee.
During your discussion, you must tell the employee what
he or she did wrong, tell him or her the actions you will
take, and warn him or her of the consequences if the action
reoccurs. Document this discussion and have the employee
sign paperwork proving you addressed the matter and that
he or she is aware of the outcomes.
Sometimes, an employee will refuse to sign this documentation.
If this is the case, have another supervisor sign as a
witness to your discussion. If there are no other supervisors,
document the date and time and note the employee refused
to sign.
How to Terminate an Employee Step 3: The Exit Interview
If you have completed the first two steps in the termination
process and the employee still is not working up to your
expectations, it is time to begin termination proceedings.
To do this, you will need to coin an employee termination
letter that details the reason for dismissal and the effective
date of termination. It should also include whether the
employee is eligible for rehire and any benefits that he
or she may or may not still receive after termination.
Finally, sit down with the employee and discuss the termination
letter. Keep the exit interview brief and avoid saying
too much, as anything you say can be used against you later
if the employee decides to file a lawsuit.
How
to fire employees when you given many "second
chances"
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