Terminating an Employee of Your Small Business

The manner in which you terminate an employee is very important. It is to your advantage to make provisions prior to firing or laying off an employee. An employment termination policy is sometimes desirable

The terms of a severance package, which is usually commensurate with the length of time the individual has been employed and his or her position in the company

Payment to the employee for unused vacation days

Provisions for continuing health benefits after termination

Whether a letter of recommendation is given for potential future employers

In some cases employers will also help by providing outplacement services.

Make sure you:

Try to make the situation as amicable as possible

Have a reasonable, legitimate and documented reason for the termination

Collect all keys, I.D.’s and other company related materials in the employee’s possession

Make sure you know his or her computer password

Terminate employees in person, or have the employee’s immediate supervisor handle the task in person

Make sure you don’t:

Discuss an impending termination with other employees (except his or her immediate supervisor)

Fire someone based on rumor, innuendo, unsubstantiated claims or for personal or discriminatory reasons

Make any statements that could be deemed personal, disparaging or defamatory