THE EMPLOYEE TERMINATION PROCESS

by Steven Cesare, Ph.D., The Harvest Group

A business owner called me the other day to talk about a pending employee termination that he was going to conduct. As he expressed, the termination was long overdue and now it was simply time to complete the process. Despite that acceptance, like many managers, supervisors, and owners, he was uncertain about the exact ritualistic steps to take in order to ensure legal compliance, procedural efficiency, and minimal disruption to the company culture. I proposed the following five-step plan to guide his actions.

The first thing I told the business owner was to never have any supervisor conduct a termination meeting alone! In today’s overly litigious work environment, there is too much inherent risk for any company representative to terminate any employee in a one-on-one format. Those days of dyadic meetings are long gone. Spurious claims of harassment, discrimination, or offensive commentary are all too common in termination meetings, which eventually became a truth test between the all-too powerful supervisor and the weakened, victimized employee. Guess who the jury is going to believe in that paradigm? Accordingly, supervisors must always conduct a termination meeting with a passive observer (e.g., Human Resources, Office Manager, other supervisor) present to validate the supervisor did not make any provocative or inappropriate comments to the employee.

Next, in a further act of preparation, the supervisor must have all administrative forms and documentation in his/her possession at the meeting. This is game day; everything has to be well organized to ensure a single, efficient meeting, bereft of any follow-up. For example, the supervisor should have: (a) the Employee Termination Form which the employee will need when s/he files for unemployment, (b) all relevant COBRA information to sustain medical benefits coverage, (c) 401(K) plan rollover details, (d) a copy of the Employee Confidentiality and Non-disclosure Agreement the employee signed during his/her New Employee Orientation session stating the employee will not try to solicit employees, clients, or independent contractors away from the employer for the stipulated timeframe, (e) verification of the employee’s current address such that the year-end W2 form will be sent to the proper location, and of course, (f) all relevant compensation (e.g., final paycheck, outstanding reimbursements, and as required by state law and company policy, payment for any accrued/granted but unused vacation or Paid Time Off hours).

In general, it is my professional opinion that all termination meetings should be completed in less than 15-20 minutes. While some disagreement or discussion is probable, there is no time for debate. The decision has been made, it is supported by management, and now must be conducted with straightforward deliberation. The longer the meeting lasts, the more likely the employee will get the supervisor to say something regrettable, capable of being leveraged to illustrate an inkling of discrimination.

During the actual termination meeting, the supervisor must always remain resolute, calm, and confident, showing appropriate eye contact to the employee. It is imperative that the supervisor never lose control of the meeting agenda, pace, or outcome. Like all other skills, practice makes perfect.

With that framework in mind, it is important to note that most employee terminations (i.e., not retirements) are usually due to either a job performance problem (e.g., poor job quality, not meeting performance expectations, consistent inefficiency) or a violation of company policy (e.g., attendance, harassment, safety). Within that two-fold premise, I suggest the supervisor follow either Statement 1 for a chronic performance problem, or Statement 2 for a company policy violation.

Upon employee arrival, the supervisor should explain the meeting purpose to the employee.

• Statement 1:

» “As you know, you and I have had several meetings over the past several weeks/months to discuss your performance-related issues (e.g., interpersonal skills, accuracy of work).

» Despite that coaching, your performance has not improved to the required level of your position

» Due to that fact, today will be your last day of employment with this company.”

» “An investigation has provided us with evidence that you violated company policy (e.g., sexual harassment, alcohol use, timecard fraud) on (specify date).

» As stated in the Employee Handbook that you signed on (specify date), that policy violation has the consequence of employee termination.

» Due to that fact, today will be your last day of employment with this company.”

Again, please be reminded, the less the supervisor says, the better the result will be. Once the supervisor conveys that message, s/he should be prepared for any possible response from the employee.

The range of employee responses to this life-changing event is panoramic, including anger, swearing, verbal attack, disbelief, crying, etc. Let the employee vent, express shock, or ask questions. Regardless of the response, the supervisor must remain placid, not acting guilty, condescending, aloof, or intimidated.

While this event may be stressful to the supervisor, it is potentially catastrophic for the employee (e.g., lack of income, humiliation, unstable future). Do not respond emotionally to the employee; rather, simply stay focused only on the content conveyed in either Statement 1 or Statement 2. When in doubt remain quiet; when challenged, merely restate the evidence and the appropriate Statement.

No matter what the employee says, the supervisor must not take the bait! Never give up control of the meeting agenda, pace, or outcome. Never. The supervisor’s remorse, apology, or condescending tone will be duly noted by the employee, ultimately used against the supervisor as probative evidence when the inevitable wrongful termination subpoena is delivered to the company’s place of business.

After the employee’s responses and supervisor’s rebuttals have occurred, the supervisor must now proceed with the administrative facet of the meeting. At this point in time, the supervisor should have a master list of all outstanding company materials (e.g., keys, cell phone, files, tools, gas card) assigned to the employee throughout his/her tenure with the organization, and request they be returned at this time. All electronic devices (e.g., cell phones, laptops, tablets) should be accessed by the supervisor utilizing the employee’s log-in identification and passwords, while the employee and the passive observer are present.

Following the return of all company materials, the supervisor should present all the aforementioned administrative documents (e.g., paychecks, COBRA, 401(k) information) to the employee. Likewise, the supervisor should request the employee sign the Employee Termination Form acknowledging the administrative details. If the employee fails to comply with that standard request, the passive observer will note on the document “Employee Refused to Sign this Document” accompanied by the observer’s initials and the date of the meeting.

Despite the momentary administrative focus of the meeting, the employee may likely still be in an emotional state replete with continued accusation, sarcasm, or victimization. Be forewarned, the supervisor must maintain his/her professional poise throughout the entire meeting, never deviating from the purpose at hand. No matter what is said (e.g., comments about the supervisor’s body parts, the supervisor’s mother or children, the supervisor’s personal character or professional standing), the supervisor must not take the bait! At the risk of being repetitive, when in doubt remain quiet; when challenged, simply restate the evidence and the appropriate Statement. If the supervisor follows this sequence as defined, the termination meeting will be over soon enough, without incident, error, or revision.

As the meeting comes to a muchappreciated conclusion, the supervisor should sincerely state “I wish you the best as you continue in your career.” Then, the observer should escort the employee to his/her workstation to retrieve any personal belongings from his/her desk, locker, or storage unit.

At no time during this phase of the termination process should the employee be left unattended to use the restroom, say good-bye to other employees, or go into the breakroom. Any lapse of direct sight provides an opportunity for the employee to fake a workers’ compensation injury, take something that does not belong to him/her, or even install a virus on the company computer system. I know you don’t believe me, but these things really do happen. Revenge is a boundless emotion.

Once the employee has safely left the company premises, not just the office, but the actual physical boundary of the company location, the observer and supervisor should debrief the meeting, compare notes, summarize everything in writing, and forward that documentation, as well as all signed forms and all returned resources to the Office Manager or Human Resources immediately for proper record keeping in the employee’s personnel file which will be repositioned to the Terminated Employee File Drawer.

Beyond this closure, it is critical to be reminded that no company employee, especially management, ever comment or criticize the terminated employee, in that such remarks frequently become the foundation for a lawsuit centered on post-termination retaliation. When asked, any management employee should be instructed to state that “Employee Name and the Name of the Organization have decided to move forward on separate paths.” No other explanation is needed, useful, or apposite.

As we all know, employee termination meetings are stressful events, for the employee, the supervisor, and the company. It is hoped that the outline presented above offers a degree of predictive direction that will minimize any unnecessary stress, disruption, or litigation.

If you have any questions or comments about this topic or anything else related to human resources, simply call me at (760) 685-3800.