Terminating Employees with Care

As an entrepreneur, your priority is doing what is best your business. Sometimes this means letting certain workers go. Should you have employment practices liability insurance in place? Ex-employees who feel they have been discriminated against could draw up a lawsuit against you, which could be expensive and bad for business. The way you terminate someone’s employment may reduce the chances of legal action ensuing.
  • Practicing what you want to say to the individual ahead of time could help keep you from stumbling over your words.

  • Reduce hurt feelings by carefully choosing the time and place for the meeting.

  • Take the time to explain the reasons behind the decision – keep your words short and clear.

  • Do not discuss or joke about the incident before or after with your other employees.

  • If appropriate, allow the employee’s direct supervisor to make the announcement, but a member of the HR staff should also be there to serve as a witness and to help keep the room calm.

  • In the event that the termination is due to poor performance, carefully consider whether the employee has received adequate training and has been properly advised in the past that their work was not up to standard. Similarly, carefully examine the justification for any dismissal for other reasons.

Even if you do your best to make the dismissal as painless as possible a terminated employee may still feel unfairly treatment or resentful. This is where having the proper employment practices liability insurance could come in handy, to ensure a disgruntled ex-worker does not cost your business a lot of money during a frivolous legal battle.