General Liability:
Preventing Wrongful Termination Suits
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Before terminating an employee, make sure your decision was well thought out and that you have reviewed and taken into consideration all prior disciplinary actions for the same type of action/violation, as well as the possible impact of the employment laws.  Have at least one high-level management representative trained in employment-related matters review the situation, making sure there is solid evidence and the reason would be considered fair and reasonable by an unbiased third party hearing both sides of the story (i.e. jury) prior to approving the termination. Discuss your termination decision with only those that need to know (i.e. supervisor, legal counsel).  If you have already had several discussions with the employee via verbal and written warnings, termination should not be a surprise.

Once you have decided to terminate the employee, schedule a meeting; don’t wait any longer than you have to.  Make sure you are prepared.  Include Human Resource representatives, the employee’s supervisor, and one other person who can serve as a credible witness, if needed.  Have the final paycheck available at the meeting, if possible.  Allow the employee to briefly discuss the decision with you and/or vent, but don’t make promises you can’t keep and don’t argue.  Tell the employee the truth and be sure not to candy coat it to spare their feelings because it may have repercussions.  Treat the employee with respect and dignity; do not embarrass the employee and do not badmouth them after they leave.  If the employee needs to be escorted out immediately, monitor their exit, but don’t get security involved unless absolutely necessary.

In summary, to prevent wrongful termination lawsuits, consider the following:

•       Do not make promises you can’t keep;

•       Establish policies and procedures and make sure all employees are familiar with them;

•       Be fair and consistent;

•       Tell the truth;

•       Use a progressive discipline approach, where possible, except in cases of extreme misconduct;

•       Consider other disciplinary actions, other than termination;

•       Treat employees with dignity and respect;

•       Do not discuss the termination of an employee with others, unless they need to know; and

•       Consider evaluating your termination process on a regular basis, comparing the policy and the actions taken, looking for strengths and weaknesses and revising as necessary.