The down side to hiring is firing. It is an uncomfortable task that can be emotional and hectic. A dirty job, but somebody has to do it. Human Resource professionals, supervisors and managers all need a checklist to prepare and successfully dismiss an employee.
*Before you give the notice of termination you will need to review their personal documents including personnel files, performance reviews and non-complete forms. Bonus or incentive plans need to be paid off including stock options and any other benefits mentioned in the offer letter. Research COBRA and FMLA to provide to the employee upon termination.
The following are five steps to consider taking at the time employment is terminated.
1: *Pay All Earned Compensation & Decide if Severance Should Be Offered
*Employers should pay any earned compensation to the employee in a timely manner. (With the exception of receiving company property back in return after dismissal.)
State laws vary, so be aware of your states law and be prepared to pay accordingly.
This is also the time to decide if any severance pay should be offered to the employee. However, unless severance pay is required by law or by the individual’s contract, this should only be done in exchange for a release of all claims by the employee.
2: *Perform An Exit Interview
Employers should perform an exit interview that is documented and retained on file. This interview should explain the post-employment process and any benefits issues.
If there are any restrictions placed on the employee, the employee should be reminded of these obligations and given them in writing as well. The employee should also be provided with copies of any non-compete, non-solicitation or confidentiality agreements. This will also help safeguard the company from any future legal issues in relation to the discharged employee.
2: *Explain Your Reference Policy
All company policies regarding references should be explained at the time of termination. Unless state or local law requires otherwise, the employer should provide any reference checks with name, dates of employment and job title only. The last pay rate or salary amount can usually be provided, but should be done only upon request and with employee consent.
It also is a good idea to instruct the employee in writing to direct all future employment reference checks to a particular department or job title. This will permit the employer to train those providing employment references to be as consistent as possible, which will help avoid or minimize risk from claims of retaliation, discrimination, or defamation regarding allegedly negative references.
4: *Document Termination
The employer should document all facts and reasons for termination of employment and confirm that all supporting documentation is in the personnel file for legal purposes.
For example, if an employee resigns, the employer should document this and have it confirmed in writing by the employee in the personnel file. If an employee is discharged for poor performance, bad attendance, wrongdoing, or another observable action it will be documented in the employee file as backup.
Keep in mind, it is one thing to have written documentation of termination per company preference, but it’s another to have it required by law. Therefore, it is also wise to determine if written notice of termination, or some other disclosure regarding termination, is required under state or local law.
5: *Disable Access and Recover Property
Once the employee is discharged, the employer should immediately disable all access to employer systems, buildings, codes and communications, such as e-mail, voicemail, remote log-in and passwords. At this point the employer should also recover all company devices, property and records.
Computers, laptops, mobile devices, cell phones, external hard drives, thumb drives, printers, fax machines, webcams, speakers, building cards/passes, electronic key fobs, documents, data and files in any format, corporate credit cards company vehicles and other property should all be returned upon termination.
*Once all property has been returned, the final step is to obtain written confirmation from the terminated employee that all property has been returned and all pay has been correctly received. It is appropriate to provide the terminated employee with a copy of this confirmation stating that all possible questions and concerns have been addressed and both parties are in agreement.
These steps not only serve to legally protect employers, but also allow the terminated employee to understand the legal limits going forward. If any suspicion develops that the employee may be violating any of the above mentioned tasks it should be investigated and documented to expose accountability.
*Bingham Greenebaum Doll – Philip C. Eschels – www.bgdlegal.com-5steps for prudent employers when discharging employees, part one: and part two: at termination