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  • Dismissing Employees

    Game Plan

    In-Depth

    How to Dismiss an Employee

    There are two basic principles that should guide every termination process: preparation and documentation.

    Preparation

    Preparation includes all of the communications that employees receive explaining your company’s general expectations, along with specific work requirements and policies. These start at the very beginning with the job application form. Here, the language should be neutral, business-focused, and non-discriminatory. The same is true for every job description.

    Experts say that it’s essential to have a well-thought-out employee handbook that details your company’s policies and expectations. Specifically, you’ll want to lay out the general terms of employment, defining whether or not it’s an at-will relationship and describing your efforts to maintain a safe, discrimination-free workplace.

    Then you can describe the normal review process, including how employee performance will be evaluated and what will happen if standards aren’t met. A separate section could describe expectations for professional behavior, absenteeism, dress code (if any), respect for co-workers and managers or direct reports, etc. This section should conclude with a description of behaviors that constitute grounds for dismissal.

    Finally, the employee handbook should describe the termination process, and state how the distribution of final compensation and any benefits, such as medical insurance or accrued paid time off (PTO), will be handled.

    With good preparation, you won’t find yourself trying to improvise the proper responses when a stressful situation arises with a problem employee. You’ll also have half of your legal protection strategy in place. The other half consists of following your stated policies and documenting your words and actions every step of the way.

    Documentation

    It’s up to you to establish the types of remediation efforts that are appropriate for your company. At a minimum, there should be some sort of formal meeting between the employee and his or her manager, possibly with a neutral third party in attendance. Here, the performance or behavior issues should be presented clearly and unemotionally, followed by a description of the steps the employee is expected to take in order to continue in your employ.

    If the situation does not improve, some companies may require employees to attend sessions with professional counselors. And in circumstances where a lawsuit seems likely, companies may launch a formal investigation to document as many facts as possible.

    The termination process

    Before notifying an employee of termination, HR experts advise holding a final internal meeting that includes the employee’s manager as well as staff members whose perspective is relevant to a sensitive personnel decision, such as an HR director, internal counsel, or a department head. The facts should be reviewed, with a discussion of the basis for the termination decision. And of course this meeting should be thoroughly documented.

    Finally, the employee should be given the news in a face-to-face termination meeting. This should be held in a neutral setting such as a conference room, with witnesses present. In addition to verbal communication of the termination, the employee should be handed a termination letter that puts your decision in writing and explains how and when final compensation and benefits will be distributed. Notes should be taken to document the employee’s response, and all of these documents should be kept in the personnel file. Hopefully, you won’t ever need them.

    Game PlanGame Plan

    Game Plan

    • As you can see, the termination process is not only stressful, but time consuming and resource intensive. The amount of effort may depend on the size of your company, the industry you are in or the nature of your workforce, the type of issues the employee is creating, and the legal threat he or she represents. Whatever process you choose to implement, it’s most important that you apply it consistently.
    • Inc. has a good overview that you can refer to for more detail about the different steps of the termination process.
    • SBA provides advice on what to include in an employee handbook.
    • And it certainly makes sense to have employees sign an acknowledgement form that they have received your handbook. The Society for Human Resource Management (SHRM) has a boilerplate version here.