Typically, business leaders need to perform due diligence when hiring new workers. Looking into a professional’s credentials and work history can reduce the likelihood of hiring a problem employee.
Unfortunately, even those who have prior track records of success may not fit in at a particular business or may experience personal challenges that affect their job performance. Employers frustrated by poor performance at work may choose to terminate a worker. Terminations may also follow rule-breaking or misconduct toward coworkers.
Every termination is fraught with risk for an organization, as employees might claim that the company wrongfully terminated them or violated their contracts. How can employers protect themselves when letting go of a specific employee?
Document the situation carefully
Company records can help limit the likelihood of future litigation or increase the chance of prevailing if a worker claims wrongful termination. In cases where mediocre job performance is to blame for the decision to terminate a worker, the company may want to create a formal performance improvement plan. Tracking how the worker responds to training and their continued performance issues can provide clear justification for terminating that professional.
In cases where issues with coworkers or disciplinary matters lead to a termination, write-ups documenting progressive disciplinary efforts and human resources reports can be helpful later. The more records there are supporting the company’s decisions, the easier it may be to prove that the company had justification to terminate the worker.
Sign an agreement with the worker
Employers are in a position of control during the termination process. Depending on the terms of an employment contract, the business may be able to deny any claim to a severance package or even unemployment due to the worker’s performance or disciplinary issues.
By working with the employee to offer them a bit of grace, such as a two-week severance package, it may be possible to reach an agreement. The agreement may require that the employee acknowledge the issues that led to their firing and agree not to take legal action against the company.
They may even agree to resign voluntarily to avoid having the termination on their record. An agreement signed when a worker exits the company could also potentially include a confidentiality agreement that prevents the worker from disclosing information about the company to others.
Having support when making employment decisions, including the termination of a problem employee, can reduce the likelihood of mistakes and oversights that leave a company legally exposed. The right procedures and records can go a long way toward mitigating termination-related liability.