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One of the more unpleasant responsibilities of managers and HR personnel is to terminate employees. While this is never an enjoyable task, it is important that it be done with forethought and planning in order to protect the security of the facility and company.
There are many reasons that an employee might be terminated — such as for cause, as well as downsizing of the company and lack of work. Regardless of the reasons, terminations must be performed following the same steps.
In advance of terminations, prepare a checklist of all items that need to be handled with the employee. Areas to be considered include IT security, facility security, benefits, company property and data, non-compete agreements, and final pay. Many of these issues pertain to employees who resign as well as to those who are terminated. Having a standard checklist prepared ensures that nothing will get missed, and makes a potentially emotional process more routine.
There are many theories about the best day of the week, and time of day, to terminate an employee. It’s generally believed that it’s better to terminate an employee late in the day and early to mid-week. An early to mid-week termination gives the employee time to take positive actions to move forward, such as filing for unemployment, signing up with a staffing company to find employment, and applying for jobs in the newspaper or online postings. A Friday termination means that the employee has two days in which they cannot do much more than worry and get angry. A late afternoon termination allows the employee to leave the building during the time of day when other employees are leaving, making the departure more natural.
Washington does not require an employee to be given their final paycheck at the time they are terminated, but rather during the regular pay period. However, paying the employee all wages due them during the termination meeting reduces one point of contention and eliminates a reason for future contact with the company. If your company has a policy to pay employees for accumulated vacation and/or sick leave, be sure to include that pay with the final paycheck. Never hold back pay due an employee, even if they are let go for good cause. It is a small price to pay to avoid conflict and legal wrangling. During the termination meeting ask the employee if they have any unpaid expenses, and have them complete an expense form for reimbursement as soon as possible.
Holding the meeting in an area such as a conference room provides a neutral location and allows you to stand up to leave, without the employee hanging back in your office. The meeting itself should be short. The purpose is to inform the employee of your decision. It is not a time for discussion, as the decision has been made. Do not apologize and don’t become emotional. Make it clear as soon as possible that the purpose of the meeting is to terminate the employee. Be prepared for a variety of reactions, from tears, to argument, to confusion. Prepare yourself well and don’t deviate from what you’re planning to say. Decide beforehand how you will end the meeting, perhaps by standing to signal that it is done.
During the termination meeting, be prepared to give the employee information on the status of their company benefits. Providing this information is often a neutral way to transition the meeting to an ending. The information should also be provided in writing and should cover medical benefits and COBRA if applicable, retirement or IRA benefits, flexible spending plan, life insurance, or educational reimbursement. If the employee has signed any agreements with the company, such as a non-compete agreement or a confidentiality agreement, it’s a good idea to review those documents with the employee and to provide a copy to take with them during the meeting.
The employee’s file should contain a record of company property in the employee’s possession. All of this should be retrieved before the employee leaves the building. Such items might include a building key, ID badge, cell phone, laptop, uniform, safety equipment or credit card. In this electronic age, the other area of concern is information security. Immediately upon termination, the employee’s access to the company’s computers, network and email need to be eliminated. In a small business, this often requires prior arrangements with an offsite tech support or network manager. It is never a good idea to allow a terminated employee to return to their computer and to have access to company data or files.
Never terminate an employee in front of others. Always grant employees respect and dignity. Allow the employee to gather their personal belongings from their workspace. It’s a good idea for someone to observe this process, but it should be done in a respectful and helpful manner. If security is a concern and your company is too small to have onsite security, have another person in the room, or alert someone to your concerns and have them close by.
After the termination, remember that your entire office is impacted. Other employees may feel relief, anxiety, anger, confusion, or a variety of other emotions. As the manager, it is your job to set a tone of confidence and respect, ensuring the staff that the company is continuing to move forward and function at a high level. The terminated employee has a right to expect confidence about the circumstances of their termination. Your employees want to know that their own jobs are safe, that the company is fine, and that the business will continue to do well. Your attitude will make all the difference.
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