More workers are leaving current employers to change careers, start their own enterprises or leave the workforce completely for various reasons. The ramifications for smaller employers are high. Wages and benefits are rising at large corporations to try and attract workers and teams, supervisors and owners are having to absorb more responsibilities to compensate for the lack of staff while trying to keep customer service needs standards high.
We have previously discussed how effective employee engagement programs and meaningful performance management programs can help you to keep your teams motivated and productive. These programs are also highly beneficial in helping the smaller employer retain talent, especially right now with so many small businesses finding it difficult to recruit new workers. In the current scenario, you may have a situation where you have to fire an employee. Maybe they just are not meeting minimum performance standards, abusing the attendance policy or have engaged in conduct that is creating a hostile work environment.
California is an at-will employment state. This means that either the employer or the employee may terminate the employment agreement at any time, for any reason, with or without notice. But navigating for cause terminations in California can be tricky. In the article below we’ll walk you through how to “Fire An Employee The Right Way.” Keep in mind, firing is not the same thing as a layoff or a resignation. Firing an employee is an involuntary termination and is a serious employment action that, if done poorly and without advanced preparation, can put your company at risk.
Before making the final decision to fire
First step, define the valid, legal reason for the termination. Be sure you have a clear understanding and reasoning why you need to fire the employee. If necessary, consult a human resource professional and/or employment legal counsel.
Valid termination reasons can include, but are not limited to, poor performance or attendance, engaging in harassing or discriminatory behavior, or drug or alcohol abuse while working or otherwise representing the company.
There are also several reasons to terminate an employee that are not compliant with labor law. In order to be compliant, you may not fire for reasons that are or can appear to be discriminatory or retaliatory. Some examples are firing an employee for being a member of a protected class, taking family or sick leave or participating in jury or military duty. Additionally, you may not terminate an employee who reports incidents of harassment, discrimination, or violations of safety protocols.
Some actions can warrant immediate termination without any disciplinary warning. Those include when an employee is engaging in criminal activity, such as stealing, or driving a company vehicle while intoxicated. Also, when an employee has behavior that puts them or others in harm’s way. In these scenarios, you must be able to prove that the employee actually had performed the alleged actions.
Second step, make sure that your documentation details the issues leading to termination and the final reason for the termination. Documentation for subpar performance should detail the reason for the firing, any steps or actions taken that support the firing and how the employee had previously been notified of their problem behaviors, the opportunity to improve, that they did not improve and the monetary impact it had on the company and coworkers.
In the event of firing for claims of harassment, discrimination, or retaliation, fully complete an internal investigation of the alleged incident, interview all involved parties and document the findings and recommendations of the investigation.
Before the exit meeting
Prepare all termination documents required by your state, Federal requirements and your local municipality, if required. In California, a few required items include a termination letter to the employee, EDD brochures, copies of previously signed confidentiality agreements and COBRA notifications. Additionally, employers must ensure payment of all monies owed to the employee are paid to the employee on the day they are fired. Monies owed include payment of wages through the end of their last day worked, payment of accrued but unused vacation time or PTO and reimbursements for work related expenses. Commission owed is to be paid in accordance with the Commission contract and/or plan.
The exit meeting for an employee who is being fired can be stressful for both the employee and you. This can lead to an awkward conversation or escalate into confrontation. In addition to arranging for an uninvolved witness to be present, there are steps you can take to lessen the chance of a more volatile meeting.
Start by identifying the best day of the week and time of day to conduct the meeting. While there are many opinions regarding the right time or day to fire an employee, it comes down to what is best for the company and what you’re trying to achieve for the employee. Friday afternoon may be best if you want to give them the opportunity to gather their belongings in private. If the employee’s behavior has been egregious and you have concerns about them remaining onsite, you can have the conversation as soon as the final paperwork and paycheck are prepared and escort them immediately off the premises.
Also, maintain employee privacy by avoiding a public or visible setting that is free from distractions, such as an office or conference room. When choosing the location remember to keep your safety in mind if you believe the meeting will be at all contentious or if you feel the employee may become argumentative or combative.
If you must conduct the termination in a virtual meeting, make sure the employee will be available at the scheduled time. In advance, have a procedure and checklist to go over the paperwork. Keep in mind you need a protocol for the employee to easily return any company owned equipment.
You will want to schedule deactivation of the employee’s company accounts and emails forwarded to a delegated person. It’s also important to decide on a plan to transition the employee’s work to other team members.
During the exit meeting
During the meeting, use clear, respectful language, be brief and to the point and avoid allowing the employee to “argue their side”. Allow them a way to exit the meeting and the building gracefully.
Take the time to explain the various documentation you are providing to the employee and ensure you obtain any needed signatures. Make sure you provide the employee with copies of signed documents. Have the employee return building badges or keys and company equipment. If appropriate, allow the employee to gather personal belongings from their workspace with a Company representative as a witness. This will give you the opportunity to note any personal belongings of value the employee is removing to avoid conflict later. If company policy or the specific situation requires the employee to be immediately escorted out, safeguard their privacy and be respectful by not drawing unnecessary attention of the escort. Often, simply showing kindness and courtesy during the termination process will minimize the employee’s need to lash out.
After the exit interview
There are HR and payroll tasks to be completed when employees leave a company. The payroll file will need to be updated, the employee file closed out and benefit carriers notified of the termination. It’s also critical that you take steps to ensure that company policy is followed for future requests for employment verification.
Your last action as the company leader is to notify your remaining employees as soon as possible. An immediate announcement, that does not divulge the reason for the termination, can help curb unwanted rumors and provide your team with assurance that this is not a department or companywide event. Your employees will also be anxious to know who will be assuming the terminated employee’s work, even temporarily.
Check out our DIY Checklist – How to Fire an Employee. As always, we’re here to help if you need help either preparing to fire an employee or to perform the actual termination meeting. Please reach out to me directly or schedule your free 60-consultation here.