Last Updated on December 16, 2024

Employee termination is one of the most challenging responsibilities for any employer. Mishandled, it can lead to legal liabilities, damage to workplace morale and reputational harm. It’s essential to be organized and considerate to navigate this process effectively. Below are outlined key steps and considerations to ensure a smooth and compliant termination process.

Preparing for the Termination Session

Preparation is the cornerstone of a professional termination process. Employers should:

• Clarify the Reasons for Termination: Ensure the decision is based on objective criteria, such as performance issues or misconduct, rather than subjective biases. This clarity will help frame the conversation and mitigate misunderstandings.
• Schedule Thoughtfully: Choose a time and location that provides privacy and minimizes disruption. Early in the week or at the end of a workday are common choices.
• Rehearse the Conversation: Plan the discussion to ensure it remains professional, concise, and empathetic.
• Involve Key Personnel: Have a witness, such as an HR representative, present to document the discussion and provide support.

The Necessity of Documentation

Comprehensive documentation is critical in termination cases. Employers should maintain:

• Employee Performance Records: Include evaluations, warnings, and improvement plans.
• Incident Reports: Document any misconduct or rule violations in detail.
• Termination Notice: Prepare a formal termination letter outlining the reasons and any post-employment terms. Make sure the notice is concise and strictly relates to the facts of the situation.

Well-maintained documentation not only supports the decision but also helps protect against legal claims.

John Yerger, SHRM-SCP, Principal and Co-Founder of MyHRConcierge, notes that it may be useful to have “a standardized process of documenting,” which could be a “standardized employee counseling form or performance improvement plan form as part of your portfolio of documents that you will use going into that (termination) process.”

Yerger mentions that having a standardized process of documentation will allow for the termination conversation to flow through a standardized process, referencing questions such as:

• “What did you do wrong?”
• “What policy violation was that?”
• “What performance standard did you not meet?” and “What are we going to do to correct that going forward?”
• “What do we expect to happen going forward? And if it doesn’t happen, this is the result.”

Avoiding Discrimination

Termination decisions must comply with anti-discrimination laws. Employers should:

• Ensure Equal Treatment: Decisions must not be influenced by race, gender, age, disability, religion, or other protected characteristics.
• Review Policies: Align termination actions with company policies and what is noted in the employee handbook, and consistently enforce them.
• Seek Legal Counsel: Consult an employment attorney if the termination involves a protected class or sensitive circumstances.

Employers should refrain from getting involved in an argument or back-and-forth conversation discussing how employers feel about the employee as an individual, notes Yerger. If an employer begins discussing an employee’s characteristics or individual traits, it becomes a subjective area where employers can open themselves up to a discrimination claim. Instead, focus only on the infraction or performance of the employee, being very clear and precise and presenting documented facts.

Legal Considerations

Failing to address legal requirements can result in costly lawsuits. Key points include:

• Employment Agreements: Review contracts for termination clauses, notice periods, or severance obligations.
• State and Federal Laws: Comply with Worker Adjustment and Retraining Notification (WARN) Act requirements if applicable.
• Final Paycheck and Benefits: Ensure timely payment of final wages and clarify continuation or cessation of benefits.

Post-Termination Considerations

The termination process doesn’t end with the meeting. Employers should:

• Collect Company Property: Retrieve keys, badges, laptops and other items.
• Deactivate Access: Secure digital assets by disabling access to company systems and accounts.
• Provide Separation Information: Offer details on final pay, benefits and unemployment resources. Also review state and local requirements for information that may be required to be provided to the employee as part of the separation.

Communicating with Remaining Employees About the Termination

Transparency with the remaining team is crucial to maintaining trust and morale. Consider these approaches:

• Provide Context: Without breaching confidentiality, explain the departure as it pertains to the team or company goals.
• Reinforce Stability: Reassure employees about their roles and the company’s direction.
• Invite Questions: Allow employees to voice concerns and address them openly.

Yerger also discussed the importance for employers of refraining from discussing specifics with other employees following the termination:

“There can be some emotionality. It could affect people in a way where they’re concerned or fearful or that was a close friend- if you have to address it (the termination), address it very briefly. Offer reassurance; we’re a family, we’re a team, we’re moving forward and everything’s going to be good going forward. The sting will be there for a minute and then things will move on. But, be discreet. Don’t discuss the particulars of the situation. Leave that alone. Employers can find themselves in a lot of trouble if they start talking about those specifics, because those could be disparaging and could also go back to the individual.”

Additional Best Practices

• Show Empathy: Recognize the emotional impact of termination on the individual and others in the workplace.
• Offer Outplacement Support: Provide resources to help the departing employee transition, such as resume assistance or career counseling.
• Review the Process: After the termination, reflect on the process to identify areas for improvement.

Partnering with Experts: MyHRConcierge Can Help

Employee termination is a sensitive and complex task that requires careful preparation, empathy, and adherence to legal standards. MyHRConcierge can help by providing employers with the guidance and tools needed to manage terminations effectively while minimizing risks. From ensuring compliance to support creating and managing an employee handbook, our team is here to help you navigate these challenges with confidence.

To learn more about HR compliance and support for your company, contact MyHRConcierge by phone at 1-855-538-6947 ext.108, email ccooley@myhrconcierge.com or schedule a free consultation below: