How an employee termination or layoff is handled on the front-end can make all the difference imaginable on how the separation actually takes place. A well executed, carefully planned firing can avoid any serious stir in the workplace. A poorly executed, shoot-from-the-hip approach, on the other hand, can cost an employer dearly in terms of productivity and morale, as well as financially when the ex-employee fires back with a lawsuit.
Properly preparing for a termination starts with getting the paperwork in order – look at performance evaluations, disciplinary action forms, attendance sheets, etc., and make sure that the documentation shows that a case can be built that supports a proper reason to fire the employee. Documentation is important in helping make the decision in the first place but, more critically, it serves to back up the decision should the matter spur a lawsuit.
Consistency in the documentation is key. Harmony between the employer’s story for why the firing took place and the documentation on the employee’s history can mean the difference between a simple parting of ways and a prolonged and messy legal battle, and employment attorneys know this. If an ex-employee’s attorney, looking for evidence of a wrongful termination, sees a lack of consistency in the employee’s personnel files or a lack or records at all, consider that blood in the water.
Protected classes of employees
Another very important consideration is whether an employee slated for possible termination is a member of a protected class. Federal law prohibits discrimination based on a number of factors such as race, color, religion, national origin, sex, pregnancy, age, disability, or citizenship. State and local laws also can provide additional protection. For example, no federal law currently protects against discrimination based on sexual orientation. A large number of states, however, prohibit such activity within their borders.
Below is a list of the major employment laws which create protected status for certain employees:
Terminations can lead to a number of other important issues. As every human resources professional knows, just because an employee no longer works there doesn’t mean that all ties have been severed completely.
Unemployment compensation is one such issue that can leave the specter of a former employee haunting your office long after he was fired. Again, having good documentation that shows your employee was fired for misconduct can be critical in an unemployment compensation hearing. Winning in these hearings can save your company big bucks in the long run.
COBRA and severance pay are two more issues that must be dealt with. By law, an employer must make an employee aware of his rights under COBRA for continuing to stay on the company’s health insurance program. Severance pay arrangements can offer some peace of mind that the ex-employee won’t sue, but at a hefty price. Yet, putting a severance pay agreement in front of an exiting employee isn’t always a solid insurance policy against lawsuit. If an exiting employee feels that he is leaving on bad terms, even the heftiest of severance sums may inspire him to use if he sees it as the company’s attempt to cover up indiscretions.
Related articles on Firings and Terminations from the State Employment Law Letters designates additional valuable resources available exclusively to Employment Law Letter subscribers