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Terminating Employees

This session will equip you with essential knowledge on the complex process of employee termination. You'll learn to recognize legal restrictions, prepare effectively before making termination decisions, and conduct termination meetings with professionalism. Key topics include legitimate reasons for termination, managing compensation and benefits, as well as carrying out constructive exit interviews. Understanding the legal framework and following best practices is vital to avoid wrongful discharge claims and ensure a smooth transition for both employees and the organization.

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Terminating Employees

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Presentation Transcript

  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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