Terminating Employees

Terminating EmployeesThe Process

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Session ObjectivesYou 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


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


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


Legal History• Employment at will• Unions and labor

agreements• Employee rights


Legal History (cont.)

• Fair employment laws• Whistleblower laws• Judges and juries


Termination Restrictions • Employment contracts• Promises of

employment


Termination Restrictions (cont.)

• Title VII of the U.S. Civil Rights Act of 1964• Other fair employment laws • Labor laws• Safety and health laws


Termination and the Law• Questions?


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


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


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


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?


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


Are You Prepared to Terminate?• Questions?


The Termination Meeting • Who will handle the

termination?• Where will it take

place?• Who else should be

present?


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?


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


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


Final Paycheck and Company Property• Timing payment of final

wages• Pay questions• Minor accounts• W-2• Securing company

property


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


Layoffs and Shutdowns (cont.)

• Termination procedures• Information about rights and benefits• Discrimination issues•WARN Act


Exit Interviews• Exit interviews are a

reality check• Exit interviews offer

opportunities to deliver important information


Exit Interviews (cont.)

• Opportunities to obtain important information, such as feedback about:• Management practices• Supervisory performance• Employee opinions and

attitudes


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


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

Documents

Terminating Employees