Getting Through the Hardest Day

03/05/07

Whether it’s a layoff, retirement, resignation or termination, one thing is for certain: Employee separations can be very difficult to handle legally and emotionally. Still, you can make the process as efficient and comfortable as possible for both yourself and the employee.

How an exit interview can help down the road
Believe it or not, an exit interview can be a positive experience. You can learn a lot from an employee’s decision to leave — information that can help identify training and development needs as well as areas that may require change.

To set the stage for a productive exit interview, establish a clear agenda for the meeting. Let the employee know that he or she has an open forum to express opinions freely and voice frustrations without fear. Some issues typically discussed include working conditions, career advancement, workloads and coworker relationships.

The more thorough an exit interview, the better the chance the meeting will endon a positive note.

Honesty is the best policy … even during a termination
A dismissal may be one of the hardest things you ever do as an employer. But it isn’t the time to spare the employee’s feelings by sugarcoating the reason for termination. Why? If a lawsuit arises, the fact that you’ve been straightforward will only help. And, hopefully, you’ll have documented the reasons for termination as well.

Always have at least one other management representative as a witness to the firing, preferably taking notes. Remember, the National Labor Relations Board recently ruled that an employee has the right to have a coworker present as a witness in any meeting that he or she believes may result in disciplinary action. You don’t have to inform the employee of this right, but you can’t deny the request.

At the conclusion of the meeting, give the employee his or her final paycheck, if available, and explain any extra benefits he or she will receive, such as severance pay, paid vacation or continuing health coverage under the Consolidated Omnibus Budget Reconciliation Act (COBRA). Make sure you’ve documented the meeting with a written summary.

The cleaner the separation, the better
You certainly don’t want a departing employee to hurt your company with a lawsuit. That’s where a separation agreement can help. By signing this agreement, sometimes called a “general release of claims” or a “waiver of claims,” the employee gives up the right to pursue any legal action against the employer.

Two elements are essential to drafting a legally enforceable separation agreement:

Adequate consideration — The separation agreement must give the employee something over and above what he or she is already owed upon his or her departure. Consideration can be in the form of severance pay, extended benefits, outplacement services, referrals, etc.

Voluntary and knowing — The employee cannot be coerced into signing the agreement. The employee should be given a period of time to consider the release and an opportunity to review the release with an attorney.

To comply with the Older Workers Benefit Protection Act, employers must allow individuals age 40 and over a 21-day waiting period to sign the agreement and a seven-day revocation period after signing.

G.Neil has the tools to make separations worry-free. You can satisfy documentation with our Separation Notice, and guide staff through the termination process via our training video.

Separation Notice