Tips for Legally and Ethically Firing Employees

Firing employees is an inevitable part of running a business. Sometimes, economic constraints make it impossible to retain your current workforce. Other times, you need to fire someone because they are not living up to your expectations. When you do so, you need to make sure that you do so both legally and ethically.

Before Firing

Before firing anyone, ethics demand that you have been providing feedback so the employee knows that there is a problem. This feedback should be progressively more intense, giving the employee a chance to do something about the problem. Of course, this does not apply if there is a situation warranting an immediate dismissal for a gross lack of professionalism.

If you have determined that the employee is not going to be able to improve, then it is time to implement a progressive disciplinary action plan. This is basically documentation showing that you are doing what you should to ensure the employee knows about the problem and is given a chance to improve. You can also ask the employee if he or she would rather voluntarily quit instead of participating in the disciplinary action.

The Actual Firing

Firing employees usually happens at an employment termination meeting. Do not inform the employee about this meeting early because this starts the gossip chain and makes the employee feel unnecessary stress. Offer the employee any severance or compensation you feel they are due, and treat the meeting as the exit interview for the employee. Make sure the employee knows why you are doing the firing.

If you are firing an employee because of their behavior, make sure you have sufficient documentation. Remember, they could try to sue saying that they were discriminated against for any particular reason. Having the right documentation showing the real reason you fired them will protect you from this.

Why is it so important to fire people properly? Doing things in line with these steps helps create a culture of support within your business. People who work for you will know that they are not going to be fired arbitrarily, but that you are going to give them chances to fix their errors if you are not happy with their performance. It is always easier to continue working with an existing employee who gets his act together rather than searching for a new one, and your other employees will feel less discouraged when they see a coworker go if they know the steps taken prior to the firing.

After Firing

Once you have fired someone, make sure that you properly remove his or her permissions to access your building or network. This may require the help of your Network Administrator. Have the employee return keys and any other property that belongs to the business. Any passwords the employee had relating to work should be submitted to their supervisors. Check with your HR department about any vacation time or sick days. The law requires you to pay terminated employees a maximum of 30 days for this unused time. Pay the employee any moneys owed quickly, so you do not lose track of this important part of the process, which could lead to you being held liable at a later date.