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Prepare for legal, operational, and emotional issues.
Before you terminate an employee, remember you can expect key challenges. Possible challenges include facing wrongful termination or discrimination claims, managing sudden drops in team morale, handling complex final paycheck laws and securing company data or property.
So for managers in this litigious environment, the most challenging events occur when terminating employees. Just one error by management can ignite a costly lawsuit. Unfortunately, there are numerous opportunities for you to commit errors.
Proper preparation prevents costly mistakes, such as mistakes in making statements during the ordeal or in documentation.
Four compliance and legal risks
1. Make certain to have all the necessary documentation. Otherwise, you’ll find it very difficult to defend your decison, if you terminate an employee without a paper trail of issues or if you put the employee on a personal improvement plan.
2. Strategize to avoid protected class issues. You’ll risk retaliation or discrimination lawsuits by the U.S. Equal Employment Opportunity Commission if you terminate employees who were on medical leave, filed complaints or belong to a protected class.
Human Resources — Crucial Elements of Termination Letters
3. Avert potential accusations of inconsistent treatment. You’ll open the door to such claims if you punish one employee but ignore the same behavior by another employee.
4. Do not violate wage and compensation laws. You’ll fall into legal hassles and endure heavy financial penalties if you violate state-required timelines in issuing timely final paychecks and compensating for accrued vacation time.
Three possible operational and security issues
1. You might risk data and asset problems. For example, be certain to immediately revoke software access and email permissions, and keys to prevent risking data theft or sabotage.
2. Workflow disruptions such as overwhelmed employees or missed deadlines will haunt you if you terminate an employee without a well-planned transition.
3. Diligently remember all contractual obligations. You’ll incur breach-of-contract penaties if you forget about requirements in employment agreements, handbooks or union rules.
Vital Strategies to Avoid EEOC Discrimination Suits
Two resulting emotional issues
1. It’s common for employees to feel fearful, resentul and stressed after their co-worker is terminated.
2. In some cases, terminated employees “go postal” or become violent — resulting in even worse teamwork and morale issues. So due diligence is required to justify firing an employee. This means you must prepare for several possible discrimination scenarios to overcome before starting the termination process.
Ask yourself six questions:
1. Is the employee a whistle-blower?
2. Are you taking precautions in case the employee can accuse you of discrimination (for reasons of ethnicity, national origin, religion, sexual preference or others such as family medical leave)?
3. Is the employee injured or has file a workers’ compensation claim?
4. Is the employee disabled?
5. Is the employee over age 40?
6. Has the employee been involved in a sexual harassment dispute?
Conclusion
Proper preparation prevents costly mistakes You must be able to adequately justify a termination. Note: You have to be able to document reasons for your record-keeping – not necessarily just the reason for a termination – when you terminate an employee – not later.
From the Coach’s Corner, additional HR tips:
Avoid Nightmarish Trend: Discrimination Suits, an EEOC Dragnet – News headlines from Seattle to New York are cause for some serious head-slapping when it comes to management of employees — EEOC discrimination lawsuits are seemingly everywhere. Here’s how to avoid HR nightmares with the EEOC.
10 Tips on Responding to EEOC Complaints – If your company is hit with an EEOC complaint, here’s what to do.
Avoid EEOC Legal Hassles over Unpaid Leave Requirements – You might want to review your current human resource policies. The Equal Employment Opportunity Commission (EEOC) has continued to push employers on unpaid leave under the Americans with Disabilities Act (ADA).
Human Resources Tips – Checklist to Prevent Legal Issues – To be successful in management or as a human resources professional, you know the importance of staying current in possible legal issues.
If it’s Necessary to Fire Employee on FMLA, Here’s How … – Despite what might you have been told, you can discharge an employee while on leave for cause under the Family and Medical Leave Act. If you feel you must terminate such an employee, here are the guidelines.
“Be transparent about why the termination is happening. If you did things right, it shouldn’t be a surprise to the person.”
-Christine Tsai
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