Termination Without Fear of Litigation

08/20/08

Fear of legal reprisals has hamstrung more than one manager confronted with an employee termination. Here are a few pointers that can help you and your company leaders avoid the anxiety – and legal trouble! - that surrounds this troublesome topic.

Voluntary vs. Involuntary
A voluntary termination occurs when an employee submits a notice that he or she has agreed to leave the company on a certain date (such as two weeks into the future). An involuntary termination is one in which the employee is dismissed for cause (such as a physical altercation or theft), unacceptable job performance or layoff. However, employers beware! By forcing an employee to leave immediately following his or her resignation, you may inadvertently turn a voluntary termination into an involuntary one, an undesirable situation for two reasons. One, it means the employee may be able to collect unemployment insurance; and two, it may provide cause for a wrongful termination claim if the person is forced to leave under less-than-ideal circumstances.

Additionally, many employers are under the impression that “at-will” employment gives them free rein to fire anyone they wish, at any time, for any reason. That may be true in some cases, but it doesn’t apply in all cases, so employers are advised to examine their state laws for clarification.

Think Twice Before Initiating an Involuntary Termination
If performance weakness or serious infraction is the cause for an employee’s termination, employers should ask themselves a few questions before making the final decision, such as:

• Has the employee had the opportunity to tell his or her side of the story?
• Is there documentation to support termination, such as poor performance reviews or written warnings?
• How have employees in similar situations been treated in the past?
• Have you discussed your decision with an HR professional?
• Does the termination violate any federal or state laws (i.e., discrimination)?

For more helpful tips and information, Employee Termination: What Every Manager Should Know is a training video that demonstrates techniques that will help your managers avoid costly legal mistakes.