Terminating Employees

Terminating Employees 

Employment laws differ by state, so it is important for an employer to understand the  law in his or her own state. All U.S. states, including Delaware and Maryland, generally  recognize the concept of “at-will employment,” meaning an employer may fire an  employee at any time for any reason, or for no reason at all, so long as doing so is not  against the state law. For example, in most states, an employer could fire an employee  for doing a poor job, but the employer could not fire an employee due to their race or  national origin. Additionally, in many states, the at-will doctrine may be modified by  contract or even by an implied agreement so be sure the employee handbook document  aligns with a termination process. There are additional exceptions to the at-will  employment rule in various states, so it is advisable for an employer to contact an  attorney licensed to practice in the jurisdiction of the employer’s operation to confirm  what may and may not be done.  

​

Regardless of the legalities, termination of employees can be stressful but should be  undertaken when necessary. Not firing an employee who violates policies or isn’t  performing sends the wrong message to employees who follow the rules and pull their  weight. It tells them that management doesn’t value their efforts and these  misconceptions can spread within a company to the point where employees aren’t  motivated or engaged. Better to remove the person who is causing a problem quickly  and effectively. Planned termination meetings can be relatively painless. The trick is  handling them with tact, brevity, and dignity for the employee and employer.  

​

Considerations:

✓ Terminations shouldn't come as a surprise to the employee. If you hold review  meetings and/or discuss improper behaviors/actions, the employee should know  it’s coming and have had a chance to stop it. If they refuse to change behaviors  or improve poor performance there should be a sequence of disciplinary actions  that culminated in their dismissal. 

✓ Plan ahead, and schedule a termination meeting. Prepare in advance by knowing  what you’re going to say, what you need to cover, and how you’re going to  conduct the process. Begin with resolution: you’ve made your decision — it’s not  negotiable. The reason for the meeting is to provide the employee with the  information they need for separation and to collect any company property they  may hold. 

✓ Have paperwork ready including a letter of termination. For most companies, a  formal letter of termination is presented to the employee. It outlines the reason (if  any) the organization is letting the employee go. It needn’t be lengthy or detailed.  If an employee is being separated due to poor performance or a policy violation,  describe the infraction briefly. You don’t need more than a sentence to outline  consistent tardiness, for example. Simply name the violation as the reason for  dismissal and include the effective date. There doesn’t need to be a formal letter but a best practice is to have a letter to document the meeting. This can help if  there are legal issues later on. 

✓ COBRA notification - A COBRA notification is mandatory if the employee and/or  their dependents were covered under any health plans. Check with your plan  provider, they may have standard language you can use. 

✓ Company property checklist – if equipment or property was provided to the  employee for their use, be sure to have a checklist to ensure employees return  all the items. 

✓ Keep the meeting short (no longer than 20 minutes) and at the end of a workday  so employees can collect their personal belongings with some level of privacy.  This courtesy is welcomed and professional. 

✓ It should be planned and explained that retrieval of personal property/items be an  escorted process. 

✓ Don't waver on your decision. 

​

Employee termination is unpleasant. The situation makes for a difficult meeting no  matter who is involved. But it is a necessary part of doing business. The goal is to get  through the meeting professionally and with as little fallout as possible. If you complete  the termination correctly, most employees will leave the organization without incident  and with their dignity intact. 

​

Action Steps/Questions to Consider

Who in your organization will handle termination processes? 

​

Within your business, what type of actions could/would warrant termination of an  employee. 

​

What process can you put in place to document an employee’s actions that would  trigger a termination process? Can you create a form for documenting date action  and resolution or put into place an employee complaint process? 

​

What lawyer could you consult with regarding termination policies or issues? 

​

What are next steps? 

​

Reference:  

TriNet. (September 7, 2023). How to Terminate an Employee (With Sample Scripts). Found  here: https://www.trinet.com/insights/what-to-say-when-terminating-an-employee-with-sample scripts

​

Last Page: Periodic/Annual Review of Personnel                                                                             Next Page: Keeping Records