Terminating (Firing) an employee that works for you can be expose you to legal risks, but there are things you can do to minimize those risks.
Make sure to keep good documentation on employees, such as job responsibilities. You should have performance reviews and save copies of their evaluations. Your company likely has a discipline policy, and it needs to be applied consistently and have warnings documented.
Consulting an employment attorney before the termination can be a good way to help insulate you from legal troubles. They can also help you prepare for a discrimination lawsuit if one is likely to occur. If they do sue you for this, you will need to prove that the firing was performance related rather than to do to some personal factor such as race, religion, or age.
Plan everything ahead of the meeting. It might be a good idea to write a termination agreement for the employee, allowing some benefits for post-employment insurance of health care.
Evaluate the employee’s access to company property and information. Document whatever physical items they have of the company’s. It may be necessary to change passwords and locks.
Hold the meeting in the early morning or late afternoon, and be sure to explain why they are being terminated and answer any questions. Make sure they sign any documents needed and return company property.
Don’t embarrass the employee by telling others in the company the specifics of the firing, and make sure not to give them bad references as this could result in legal exposure.
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