Competent employees are a key to success in any business. The reverse is also true. An incompetent or dishonest employee can harm a business, not only by his or her own actions, but by bringing other employees down, too. If you’ve got a bad apple, the best course of action is to remove it before it spoils the whole bunch. But proceed with caution. Firing someone can be sticky business.
If you are careful in the hiring process and provide every employee with a clear job description, firing should not be a common occurrence. But despite a manager’s best efforts, sometimes an employee just doesn’t work out. Reasons an employee may be asked to leave include:
• Not performing up to expectations
• Theft from the company
• Irresolvable personality conflicts with other employees
• The company can no longer afford to pay the employee
If you are leery of firing even after an employee’s conduct clearly warrants it, keep in mind that failing to fire someone who poses a danger to co-workers, customers or others can lead to a lawsuit. But don’t base a firing on rumor, unsubstantiated claims or personal issues. And don’t make a rash decision to fire someone. Before you terminate an employee, make sure your reasons are legitimate and documented. Time cards can be used to prove absenteeism and tardiness, for example. Past performance reviews can also show a pattern of poor work performance.
In some cases, especially if the poor performance is a recent development, you may want to give the employee a warning. Meet with him or her privately, explain specifically why you are unsatisfied and give them 30 days to do better. Make it clear that without improvement, termination becomes necessary. Document what was said in this meeting.
The right way to fire
How you fire someone is important. Here are some tips:
• Meet with the person privately, but have a witness present during the meeting if you anticipate the employee will become argumentative or aggressive.
• Keep it short and simple. Tell them they are being terminated and when they are expected to be gone. Briefly state the documented causes but do not get pulled into a debate.
• Explain any severance package, payment for unused vacation days and provisions for continuation of health benefits. A company is not required to provide severance packages for fired employees, but if you signed a contract with an employee agreeing to provide a severance package, you must honor that contract.
• Make it a clean break. Having the fired employee around for several more days wouldn’t be pleasant for anybody. Have the employee leave immediately after you collect any keys, equipment, I.D.s or any other company related materials from them. Make sure, when applicable, you know the employee’s computer password.
• Do not talk about a termination with anyone in the company except the employee and their immediate supervisor. Announce to the staff that the person is no longer with the company and quickly reassign duties.
• Do not say anything to the employee that could be interpreted as defamatory.
Tread lightly
In some cases you have to be extra cautious about firing an employee. Law prohibits firing a worker because of their age, race, color, national origin, gender, religion or disability. It is also illegal to fire a worker because he or she took family leave or complained of illegal company activity. Here are some scenarios vulnerable to litigation and should be especially well documented:
1. The employee is 40 or older. The Age Discrimination in Employment Act protects workers from being replaced for no reason other than a company wanting cheaper employees.
2. The employee has complained about workplace harassment or illegal activity. Such a termination can be seen as wrongful retaliation.
3. The employee has a contract or was made promises about job security. Employees can claim they were promised a long tenure in wrongful termination lawsuits.
4. More than one person is being let go. Firing five of 20 employees looks suspiciously like age discrimination if they are all over 40 and the remaining employees are 20-somethings.
In especially sensitive cases, it may be wise to consult an employment attorney. If you have a long-standing history of treating all employees fairly and have consistently enforced company policies on job performance, tardiness and absenteeism, you shouldn’t have any legal problems with regards to firing an employee. Expect a hearing, however, if you deny a fired worker’s claim for unemployment benefits, and be careful what you say in such a hearing, because it will all be recorded by the court and can be used in a wrongful termination lawsuit.
Over and out
Firings aren’t always ugly experiences. Sometimes a person just doesn’t fit a particular company or job. They know it, their co-workers know it and their employer knows it. That doesn’t mean they won’t be a good fit somewhere else, and you may find yourself willing to provide a positive reference for a person you’ve fired. If you are not willing to recommend a former employee, however, limit comments to prospective employers who call to dates of employment and job responsibilities. Don’t bad-mouth the fired employee or you could find yourself slapped with a defamation suit.
Firing people is never easy, and hopefully it won’t be a skill you get to practice a lot, but if it’s necessary and justified, make it like ripping off a Band-Aid: quick and clean. The whole company will heal a lot quicker that way.
