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Terminating Employees

Terminating Employees. The Process. Session Objectives. You will be able to: Recognize the legal restrictions on the termination process Understand the steps that should be taken before a decision to terminate is made

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Terminating Employees

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  1. Terminating Employees The Process

  2. Session Objectives • You will be able to: • Recognize the legal restrictions on the termination process • Understand the steps that should be taken before a decision to terminate is made • Handle the termination meeting effectively as well as deal with compensation and benefits issues • Conduct an exit interview if appropriate

  3. Session Outline • Legal restrictions on termination • Examples of legitimate reasons for termination • Preparation for termination • Termination meetings and related compensation and benefit issues • Layoffs and shutdowns • Exit interviews

  4. Termination Is a Difficult And Serious Decision • Co-workers will be affected • You will be affected • Production may suffer • Wrongful discharge claims may be filed

  5. Legal History • Employment at will • Unions and labor agreements • Employee rights

  6. Legal History (cont.) • Fair employment laws • Whistleblower laws • Judges and juries

  7. Termination Restrictions • Employment contracts • Promises of employment

  8. Termination Restrictions (cont.) • Title VII of the U.S. Civil Rights Act of 1964 • Other fair employment laws • Labor laws • Safety and health laws

  9. Termination and the Law • Questions?

  10. When It’s Safe to Terminate • Examples of legitimate reasons for termination: • Acts listed in employee handbook as cause for discharge, such as sabotage • Acts listed in employee handbook as cause for discharge following progressive discipline steps • Poor performance that follows warnings or performance issues that the employee has had the opportunity to correct • Even-handed treatment

  11. Termination Preparation:Progressive Discipline • The four steps of progressive discipline: • Oral warning • Written warning • Suspension • Discharge

  12. Termination Preparation:Documentation • Make full use of performance appraisals • Avoid inflated performance ratings • Document patterns of behavior and incidents • Keep records of all disciplinary action

  13. Is Termination the Right Course of Action? • Are you moving too fast? • Do you have the documentation to back up your decision? • Does your decision look like retaliation? • Is there a possibility of discrimination?

  14. Are Any Alternatives Available? • Reassignment • Further training • Counseling • Suspension

  15. Are You Prepared to Terminate? • Questions?

  16. The Termination Meeting • Who will handle the termination? • Where will it take place? • Who else should be present?

  17. The Termination Meeting (cont.) • When should the meeting take place? • What should you say at the meeting? • What input should the employee be allowed during the meeting? • What do you need to give the employee and get from the employee?

  18. Continuation of Health Insurance Benefits • COBRA protects terminated workers from losing health insurance • COBRA is temporary • Discharged employees can continue insurance coverage for 18 months

  19. Compensation Issues • Severance packages are most common when employees are separated as part of a reduction in the workforce • Employers usually base severance on length of service • Lump-sum payments are most common • Many state laws govern how employees must be paid for accrued but unused vacation pay

  20. Final Paycheck and Company Property • Timing payment of final wages • Pay questions • Minor accounts • W-2 • Securing company property

  21. Layoffs and Shutdowns • Business-related criteria • Documentation • Rights • Promises

  22. Layoffs and Shutdowns (cont.) • Termination procedures • Information about rights and benefits • Discrimination issues • WARN Act

  23. Exit Interviews • Exit interviews are a reality check • Exit interviews offer opportunities to deliver important information

  24. Exit Interviews (cont.) • Opportunities to obtain important information, such as feedback about: • Management practices • Supervisory performance • Employee opinions and attitudes

  25. Exit Interviews (cont.) • Determine the best time to conduct the exit interview • Choose a neutral setting • Get the most from an exit interview by using a form

  26. Key Points to Remember • Terminating an employee is one of the most difficult and serious tasks you face • Be certain you have exhausted all other possibilities before deciding on termination • Make sure you understand the legal and policy restrictions on termination • Follow company policy and procedures carefully when terminating employees

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