jlzwhite.gif (125550 bytes)  The Business Advisory
   Posted Wednesday, July 02, 2008                                                                         JLZ Business Services

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Firing Workers Comes With The Territory    
but business owners can do it fairly
When all else fails, fire. If the person fails to improve after repeated warnings and within the specified period -- say, the end of a three-month probationary period -- the time has come to let the person go.

Your legal right to fire a worker usually arises from the "employment-at-will" doctrine that is in place in most states. That means that it's the employer's right to terminate without cause, just as an employee has the right to quit at will. That right, however, is limited by federal and state law and by court rulings, collective bargaining agreements and statements made in employee handbooks.

It's a complex and ever-changing issue, so ask your lawyer or contact your state's department of labor for more information.

Once you're sure you're on solid legal ground in firing a worker, here's what the experts say about handling the act in a fair and diplomatic way:

  • Do it face to face. Email or a phone call won't cut it.
  • Gather the "evidence" -- the documentation that shows the person hasn't lived up to the job's requirements.
  • Figure out what severance pay is owed to the person (if any), how long the company will cover his or her medical benefits, and how much notice the person will be given -- that is, how long the person will be employed at the company. Many companies extend severance only to employees who sign a promise not to sue or disclose company secrets.
  • Arrange to meet the person at the end of the day. The late-afternoon timing makes it possible for the individual to go to their desk and clean it out without other employees around.
  • Meet on neutral territory, such as a conference room or other location.
  • Explain to the person that his or her performance has been unsatisfactory and why it's failed to pass muster. Try to do this quickly rather than drawing it out.
  • Listen to any complaints the employee has, but continue to be firm. This is a decision that's already been made.
  • If you feel it's reasonable, offer to write a loosely worded letter of recommendation or help in finding a new job.
  • Do it quickly. If someone's not working out, don't let them spend years at your company while you get up the courage to fire them. It's fairer to let them know right away. It also puts you in a better legal light. If you fire someone after many years on the job and without proper documentation (a history of performance problems) or an out-and-out fireable offense such as theft or violence against another employee, you're leaving yourself open to a lawsuit.
  • Never fire in haste or in anger. Take the time to cool down or seek another person's perspective on the problem.
  • And make sure you have issued at least one Employee Warning Notice and have given the employee a chance to correct their actions.

Keep in mind that even if you do everything "right" that doesn't guarantee that you won't be sued. What it does guarantee is that you will have a good case that the firing was justified and legal.

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