Hi folks Dave Waring here again with Fitsmallbusiness.com and today’s lesson of the day.
So far in our series on how to hire and manage we have focused on the hiring process and
how to pay and manage employees once you have hired them.
In today’s video we are going to talk about how to fire an employee.
So let’s get started!
Step 1: Establish a Firing Protocol
If you don’t already have a firing protocol, establish one as soon as possible.
A comprehensive firing protocol consists of accurate job descriptions, clear employee
contracts, and an up-to-date employee handbook.
In all states except Montana employment is presumed to be “at will” unless stated
otherwise.
It is therefore important to avoid using language which implies that an employee will only be
fired for cause or that a job becomes permanent after a probationary period for example.
If you have an employee sign any type of employment contract make sure it is reviewed by an attorney
and includes an at will clause.
If you do not already have job descriptions, employee contracts and an employee handbook,
I have links for each in our full article which is included in the description section
below this video.
Use a “Progressive Discipline Policy”
You need to provide your underperforming employees with a series of increasingly severe warnings,
which are documented in the employee's file and signed by the employee.
If you have failed to properly document an employee’s performance issues, do not try
to reconstruct documentation later on.
Also, do not selectively document some workers and ignore others, as this may be seen as
discrimination.
Step 2: Evaluate Your Legal Obligations
Here is a list of scenarios where it is illegal to fire an employee.
Discrimination: Under federal law, it is illegal to fire someone for reasons of age, race,
religion, sex, national origin or a disability that does not influence their job performance.
Some states have additional considerations, so check your specific case.
Whistleblowers: You cannot fire employees for complaining about any illegal activity,
health and safety violations, or discrimination or harassment in the workplace.
Exercising Legal Rights: You cannot fire employees for taking family or medical leave, military
leave, time off to vote or serve on a jury.
“Just Cause” Promise: If you do not carefully outline your employment contract in writing,
you may accidentally create an implied employment contract.
This may occur if you tell your workers that they will be fired for cause only, or establish
formal guidelines that spell out how and when terminations will be handled.
This highlights the importance of a well-written Employee Handbook and employment contract.
Step 3: Review and Assemble Documentation
A list of documents you should bring to the termination meeting includes:
* A detailed letter that outlines the status of your employee’s benefits, vacation pay/unused
sick time, repayment of advances, and payment of money owed the employee.
* An explanation of benefits (COBRA) * Final paycheck or severance check.
* Documents to sign (including a termination notice or release)
* Explanation of confidentiality obligations * Return forms for company property (key cards,
etc.)
You can read more about each of these documents in the full article included in the description
section below this video.
Step 4: The Termination Meeting
It is best to make the meeting simple and quick.
Find a private, neutral space, and be compassionate and respectful.
Give them the letter you have prepared outlining the information on their final paycheck, severance,
vacation pay, and other benefits.
You are also legally obligated to include information on COBRA, a pension or 401(k).
When carrying out a termination meeting, make sure to have a witness who can account for
your actions and prevent a disgruntled employee from making false accusations of wrongful
behavior.
Most human resource experts recommend firing employees on a Monday morning, and avoiding
Fridays.
Once the meeting is over, let your former employee leave immediately and schedule a
time for them to collect their things.
Step 5: Talk to the Rest of Your Team
Once you have fired an employee, it is a good idea to notify the rest of your team, since
many of them may be concerned with their own job security.
As with the termination meeting, keep things short and to the point.
That’s our video for today.
If you have any questions or comments please leave them in the comments section below.
For more great advice on how to start and run a successful small business be sure to
visit us at fitsmallbusiness.com today.
Thanks for watching!