Reasons to Terminate an Employee

When terminating an employee, the employer needs to make sure that the reason is a sound one and that everything is properly documented. Failure to take these precautions can open you and your company up to a lawsuit. There are three main legal reasons to terminate an employee and two main avenues to make sure that these reasons are supported.

Violation of a Company Rule

An employee can be terminated for violating a company rule. The rule must be written, and the employer must be able to prove that the employee was aware of the rule. To protect themselves, most companies provide a written list of rules that employees must sign before beginning the job.

Unable to Perform Job Function

Another legal reason for employee termination is if the employee is unable to complete his job properly. If the employee shows a frequent inability to perform the functions of his job description, a termination may be in order. The poor performance must be documented and reasonable.

Downsizing

Many jobs are lost due to a company's financial situation and downsizing. Although not required by law, it is common courtesy to give the employee as much notice as possible when doing layoffs.

Proper Documentation

To provide proper documentation for all employee terminations, everything must be in writing. All company rules and policies, appraisals, job descriptions and disciplinary actions must be accounted for. If it isn't documented in writing, then it didn't happen.

Fair Treatment

All employees must be under the same rules and disciplinary procedures tor a termination to be upheld in a court of law. By deviating from standard practice, a precedence is set for all future actions to be deemed unfair and illegal. Many companies may devise a tier system based on tenure but will still hold all employees accountable under the same rules.