Terminating employees is a necessary part of being an employer. Terminating in a way that leaves both you and the employee with their dignity intact is an important skill to develop. There are also legal issues that can arise when you are not well prepared.  Here are some do’s and don’ts to remember when terminating an employee to help you avoid legal and ethical issues. There is also a check list at the end of this article you may want to study. As you will see, there is much to consider during a termination. Termination of employment is one of the leading factors or inspirations for an employee to seek out council from a government agency or attorney, to see if they may have a legitimate claim against you. It is often wise to seek the advice of an employment expert prior to terminating any employee.
Do:

• Work to end the matter in under ten minutes.
• Stick to a predetermined process so there won’t be any defending of your decisions, arguing, or back pedaling on your part.
• Plan a private setting for the termination and included a witness.
• Terminate at the end of the day or at the very beginning before patients/cusomers show up.
• Have the employee's last check ready for them at time of termination, as well as an exit interview form with a self addressed stamped envelope. (Check with CEDR regarding payment of accrued vacation which may be required in your state).
• Tell the employee, in as few words as possible, why you are terminating him or her and hand them a termination letter and an exit interview form.
• Consider the matter closed and not open for discussion as far as rebuttal is concerned.
• Listen to the employee as they vent or comment, but DO NOT answer or defend.
• Ask the employee to clean out their desk and turn in company property. Then escort them out of the building.
• Make notes of any accusations he or she makes, including threats.
• Lock down your computer systems. No kidding! The last thing you want is an irate employee to start deleting appointments on their way out the door, and you to be faced with having to physically stop them.
• Have a witness present with you during the termination.

Don't:

• Make comments like, "you have done a good job up to this point, but...." or “it’s not your fault,” or offer a letter of recommendation.
• Agree to reconsider.
• Allow yourself to get caught up in the emotion of the termination process. If the employee begins to vent, respond with, "I am sorry you feel this way. My decision is final. Now please clean out your desk and turn in the company property."(if applicable) Gently but with certainty, encourage the employee to leave the premises.
• Never lay your hands on an employee
• Hesitate to dial 911 or inform the employee that you are considering calling the police, if you feel you’re in danger.
• Make any statements based in opinion. Only the facts will support you in the future.
• Give a letter of recommendation to soften the blow. It will be used against you.

Termination Checklist

Make sure you are fully prepared before firing an employee so that you are prepared not only for the actual termination, but for any complaints or demands from the employee.  Follow these guidelines and be prepared!

o        Review the employee’s personnel file.  How much support do you have for your legitimate reason for termination?   Are there corrective action notices, a record of verbal warnings, or negative performance evaluations?   Your purpose is twofold.  One is to make sure you have adequately communicated your expectations and given the employee the chance to perform up to your standards.  The second is to ensure you can support your decision in the event of wrongful termination claim.

o        Calculate any accrued unused vacation.  Unless your state allows it, and your handbook clearly communicates otherwise, vacation benefits are usually considered vested wages and you don’t have the discretion to withhold unused vacation  pay.  Make sure you include any accrued unused vacation in the employee’s final paycheck, or otherwise follow your state and written policies to a tee.

o        Prepare the final paycheck. This should be provided to the employee at the time of termination if at all possible.  If you can’t provide it that day, check your state’s laws and make sure you send the final paycheck within any statutory deadlines.  There can be stiff penalties for missing this.  Any checks to be mailed should be sent via certified mail, return receipt requested.

o        Prepare a termination letter.  Prepare a written termination letter which gives a brief but accurate reason for the termination, reinforces any confidentiality obligations, and advises the employee, if they are a patient of the practice, to seek a new treatment provider.  You should also notify them whether they are eligible for re-hire. Finally, remind them to update their contact information if necessary so that you can send them their end of year tax forms.  Include the Exit Interview with the final letter.

o        Check your COBRA laws.  If you provide group health insurance, you need to make sure you are in compliance with your state laws regarding continuation of coverage and notification to the employee of eligibility.  Many states have recently expanded applicability to smaller employers.  Your insurance provider should be able to provide the information and the required notices. 

o        Secure company property.  Discontinue any passwords or key cards so that the employee cannot access company computers, files, or building after the termination.  Collect any keys, uniforms, or other company property at the time of termination. 

o        Communicate departure to staff.  A Termination can be a changing point for the rest of the staff.  Take the opportunity to make it a positive one. 

Note that the guidance we provide to our members above is in addition to spending time with them to determine that termination is indeed a safe and best course. We may recommend that they seek additional advice and counsel from their local attorney prior to terminating.