Essential Dos and Don’ts for Effective Employee Termination
steps to follow while terminating an employee.
1: Review the decision carefully.
Make sure more than one individual is involved in the termination decision and carefully examine the facts and circumstances at-hand. Your decision must be job-related and should be supported by relevant documentation (such as discipline notices and performance reviews). Termination decisions should never be based on an employee’s protected activity, such as filing a discrimination complaint or taking job-protected leave, or any other similar reason. If the employee’s performance is the issue, consider whether you have given them a reasonable opportunity to improve. Additionally, you generally want to ensure the decision is consistent with how you handled similar situations in the past.
2: Prepare for the meeting.
Once you have made the decision to terminate the employee, schedule a time and place for the termination meeting. Hold the meeting in private but plan to have a witness present. Think carefully about what you plan to say, be straightforward and provide support for your decision. Give the employee an opportunity to respond, but make clear that the decision is final. Employees may react with anger, disappointment, or grief, so be prepared to handle their reaction. While you may show compassion (such as thanking them for their contributions and wishing them well), avoid saying anything false or misleading in an attempt to soften the blow.
3: Document the reason for separation.
Document the reason for termination and the effective date and keep a record in the employee’s personnel file. If the employee’s termination is a result of misconduct or performance issues, make sure you keep records supporting your decision (such as past performance reviews or disciplinary notices).
4: Comply with final pay requirements.
Under federal law, final pay is due by the next regular payday, but many state laws have stricter deadlines. Additionally, depending on your location, you may be required to include accrued, unused vacation and paid time off in the employee’s final pay. Check your local laws to ensure compliance and keep a record of when you provided the employee with their final pay.
5: Ensure return of company property.
As soon as you notify the employee of your decision, go with the employee to their workspace so you can start collecting company property. Use a Receipt of Company Property or similar form to track company-issued property that has been returned to you, such as company ID badges, cell phones, laptops, and keys. Take necessary steps to disable building codes and access to computers and confidential data.
Note: Employers are prohibited from withholding an employee’s final paycheck because of unreturned property. According to law, there are restrictions on an employer’s ability to make payroll deductions for unreturned property.
6: Notify key staff and contacts.
Prepare a list of the staff, key clients, and contacts that should be aware of the employee’s departure. Explain who will be handling the departing employee’s work responsibilities in the future and identify a contact who can address any questions they may have. Work with co-workers to identify the resources they need to handle any extra work as a result of the departure.
Conclusion:
The employee separation process must be handled with extreme care to ensure compliance with federal and state requirements and a smooth transition for the company.
Now let’s see what not to do When Terminating an Employee
1. Delivering the news via text message.
When possible, you should inform the employee of your decision face-to-face. There may be occasions when a face-to-face meeting isn’t appropriate, such as when there’s a reasonable fear for the safety of co-workers or company property and you don’t want the terminated employee coming back to the workplace. In such cases, you may need to inform the employee via a phone call.
2. Terminating an employee in front of co-workers.
Terminating an employee can have a negative impact on employee morale, and doing so in front of co-workers can make it even worse. The termination meeting should be held in a private location out of earshot of co-workers.
Once the employee is terminated, let co-workers know about the employee’s departure and explain who will be handling their work responsibilities in the future. Avoid disclosing the reason for the employee’s departure.
3. Meeting with the employee without a witness.
It’s a best practice to have a witness, such as an HR representative, present during termination meetings, when possible. The witness can also take notes during the meeting to document what was said.
4. Beating around the bush.
Once the termination meeting begins, don’t delay delivering the bad news. Clearly and concisely state upfront that you are terminating their employment and provide a brief description why. For instance, “the reason for this meeting is to notify you that I am terminating your employment, effective today, because you didn’t meet performance standards.”
5. Making false or misleading statements.
While you may show compassion (such as thanking them for their contributions and wishing them well), avoid saying anything false or misleading to soften the blow. For instance, if you are terminating because of poor performance, don’t suggest possible continued or future employment.
6. Arguing with the terminated employee.
Give the employee an opportunity to speak and listen to their point of view, but avoid engaging in an argument. Instead, make clear that the decision is final.
7. Failing to address final pay and benefits.
Make sure you’re prepared to provide information about the employee’s final pay and benefits during the termination meeting. Keep in mind that there are federal and state rules for providing final pay and certain notices to terminated employees. Additionally, depending on your location, you may be required to include accrued, unused vacation and paid time off in the employee’s final pay. Make sure you follow with all applicable compliances & requirements.
