How to Fire an Employee the Right Way
Houston Financial Strategies for Small Business Woman
Before the meeting - Firing an employee is never as simple as saying, "You're fired." Proper termination is not a rash, spur-of-the-moment decision, but a well-documented process that must prove that you, as the employer, are justified in your actions. Otherwise, you're inviting the potential for a wrongful termination lawsuit.
Employees should not be surprised at a notice of termination. LaMere recommends sharing feedback with employees on a regular basis to ensure you are on the same page.
The situation can be a little trickier if an employee is being let go as part of a downsizing initiative. Kathie Caminiti, a partner at labor and employment law firm Fisher & Phillips LLP, said that documentation is necessary to justify not only the reduction in staff, but how you determined which employees got cut.
To make sure you've covered your bases, Caminiti advised asking yourself these five important questions when preparing for a termination meeting:
- What is the reason for the discharge and what documentation exists to support that decision?
- What is the employee's background and history with the company? (Consider age, gender, protected class under EEOC laws, union versus nonunion, whether employee has made complaints against company, etc.)
- Am I treating all other employees the same? (i.e., if the employee is being fired for violation of policy, would any other employee also be fired for the same violation?)
- Is this termination achieving business objectives?
- Am I following my own employer policies and procedures for discipline?
Breaking the news - As difficult as it may be to prepare for an employee's termination, the actual firing part will always be the hardest step in the process. Caminiti reminded employers that, while letting someone go does affect your remaining staff and their morale, the decision has an immediate financial and emotional impact on the person fired and his or her family. Therefore, the situation must be handled with the appropriate sensitivity and tact.
The employee you're terminating is likely going to be upset and have some questions for you once you deliver the news. Caminiti said you should anticipate this, and be ready to answer any questions posed in a respectful and succinct manner — don't drag it out, or you might say something that could land you in hot water.
Next steps - Once the employee has learned of his or her termination, your job as the employer is to make sure that person is able to make a clean transition out of your company. This includes collecting any company-issued property like phones, laptops or keys, revoking any software permissions and passwords, and having all the necessary paperwork ready to go after the meeting.
Caminiti said it's very important to make sure an employee's final notices — COBRA information, final pay, benefits administration, nondisclosure agreements, etc. — are completed, filed and issued correctly. This provides you with a proper paper trail should any problems arise after his or her last day.
Source: Business News Daily
Patty Block, President and Founder of The Block Group, established her company to advocate for women-owned businesses, helping them position their companies for strategic growth. Charting the course for impactful, sustainable, profitable businesses, the beacon is control: of your strategic direction, your money, your time, your staffing, and your ability to bring in business. The Block Group brings together the people, resources and ideas that build results.
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