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Checklist When Terminating An Employee

7/24/2014

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Terminating an employee is never a fun experience for anyone involved, the person being let go or the person delivering the news. However, a well-executed, carefully planned termination can avoid any serious disturbance in your workplace. In contrast, a poorly executed, "shoot from the hip" approach can lead to bigger problems for your organization.

The HR consultants at Clear Path Employer Services have created this handy checklist for you or your managers to follow when preparing to terminate an employee. This blog does not get into whether or not a particular case should be terminated "for cause" or "not for cause," but rather gives general steps to ensure that when you decide the timing is right for a termination you have a step by step checklist to follow:

Avoid drama and future lawsuits:
  • Have a witness in the room with you -  Another person in the room will be able to verify exactly what was said and may defuse a potentially hostile situation.
  • Keep your meeting and comments brief and to the point - Ensure that none of your actions or comments could be construed as embarrassing or humiliating to the person being terminated. 
  • Arrange for a different time (after work or weekend) for the employee to collect personal items rather than going to empty their desk immediately. If you do allow them to return to their workspace to collect car keys, a phone or a purse, encourage them not to speak to other employees. 
  • Assess the risk of a potential hostile situation and arrange and arrange for security measures accordingly, as per Ontario's Bill 168 legislation. Ensure that the person managing the termination is not alone with the terminated employee or never left in a vulnerable situation.
  • Escort the terminated employee to their vehicle and out of your building – any encounters with other employees can be very awkward and difficult for both parties, ensure that someone is with that employee to avoid these types of situations

How to handle the conversation in considerate manner:
  • Say as little as possible during the termination. This may be difficult, as you may feel the need to respond or explain your decision, especially when someone is upset, asking questions or making accusations.
  • Follow a prepared script, be calm and respectful at all times. In the case of a "not for cause" termination, do NOT discuss performance issues (even if these are factors that led to the decision to terminate). 
  • Ensure that the conversation is held in a private meeting room, preferably in an area where chance encounters with other employees are minimized. Meeting them off site can be a viable option.
  • Consider arranging transportation home, preferably a taxi service, if the employee is so upset that safe driving comes into question.
  • Plan the meeting on a work day between Monday and Thursday so employee can seek advice regarding employment insurance benefits, legal counsel, or counselling immediately. It is also recommended to have the meeting at the beginning of the work day so there is not an impression that you wanted to "squeeze" more working hours out of them before severing the relationship. You will be paying them for the entire day regardless.

Practical tips:
  • Consider protecting your intellectual property and immediately removing access to your company's online systems and email. It is recommended that they not be given access to their computer, to minimize any inadvertent loss of important client or work information.
  • Don't forget to get keys, ID badges, and passcodes from the terminated employee.
  • Generally, do not allow terminated employees to “work their notice” as this may become very awkward and an opportunity for the terminated individual to air their differences with existing staff.

Termination agreement:
  • Have a written termination agreement prepared by legal counsel and/or HR professional that details payouts to the employee (notice period, severance, benefits, etc.) and includes reminders about restrictive covenants or other agreements you want them to honour after the termination (such as non-compete clause)
  • Allow for sufficient “consideration” of termination agreement. It’s not recommended to request the terminated employee to “sign on the spot.”  Encourage them to seek independent legal advice prior to signing any agreements.
  • As for the amount of payouts to the employee, consider both ESA (Employment Standards Act) requirements, common law standards and possibly precedents set from previous packages to other former employees.
  • Obtain a full and final release if payments exceed contracted termination payouts or employment standard minimums or require signing a non-compete agreement and to avoid lengthy negotiations.

Want to learn more? Clear Path is offering an informative learning session on "Hiring and Firing Effectively" on September 25th in Cambridge. Click here to learn more or to register.

If you require immediate assistance with any HR issue, please contact Anna Aceto-Guerin at 519-624-0800 or by email at anna@clearpathemployer.com.

Related posts:
  • What Not to Do When Downsizing (3/20/13)
  • Big Brother Contestants Rightfully Terminated? (7/22/13)

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