TERMINATING EMPLOYEES

Terminating an employee can be a difficult task. How you handle the termination will affect how an employee feels about leaving the office. A poorly handled meeting can transform a routine disciplinary discharge into an expensive lawsuit. The following guidelines will assist you in entering the termination meeting prepared, and in minimizing your exposure to litigation.

Have a Plan

Develop an exact plan for the meeting. Decide beforehand what will happen, what you will say, what documents you will give the employee, etc. Once you begin the meeting do not deviate from the plan, and keep the meeting as short as possible.

Have a Witness

Have another person present to document what actually happened in the meeting. That way, if you are sued, there will be a record of what transpired. For privacy reasons, the witness should be someone who is another human resource employee or manager, rather than a co-worker.

Explain the Problem

Give the employee a direct explanation of the reason(s) why he/she is being terminated. If the termination is for poor performance, give the employee examples of the problem and do not sugarcoat your comments.

Recover Company Property

After you have met with the employee about the termination, walk the person to his or her office space and retrieve any company property such as keys, badges, phones, and laptops. If the employee has office property at home, make arrangements, in writing, to get the items back. Keep in mind that you cannot deduct the value of the outstanding items from the employee's final paycheck without written authorization from the employee.

Have the Final Paycheck Ready

Give the employee his/her final paycheck during the termination meeting. The paycheck should include payment for all time worked up to the termination date, plus accrued vacation or paid time off.

Consider Severance and Release

You may want to offer the employee severance pay in exchange for a release of claims. If so, have an agreement on hand and prepare to discuss it at the termination meeting. Standard terms include: a promise the employee will not sue, an acknowledgment the company did nothing wrong, the confidentiality of the terms of the agreement, a promise not to disparage the company, and a promise not to seek re-employment with the company. For the release to be binding, you must give the employee something, usually money, in exchange for these promises. The amount you offer must be more than what you already owe the employee, and it should be high enough to make it worthwhile for the employee to sign the release.

ESKRIDGE LAW may be contacted by phone (310/303-3951), by fax (310/303-3952), or by e-mail (geskridge@eskridgelaw.net.) Please visit our website at www.eskridgelaw.net or www.employmentattorneys.net.

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