Defending a wrongful dismissal claim. (Legal Watch).

One of the first things employees do when terminated is seek advice from a lawyer about a wrongful dismissal lawsuit. This article explores the, ways in which employers can defend themselves against a wrongful dismissal claim. Specifically, it explores the documents and information you should gather to assist in the defence of such an action.

Statistical Information

In determining how much severance an employee is owed, the courts examine some basic statistical information, including the number of years the employee worked for you, his or her age, position held and compensation.

Years of Service

If the employee were induced to leave a secure position for the one in question, his or her years of service with the previous employer might be taken into consideration by a court in calculating notice. Therefore, you should consider whether inducement is a factor and, if it is, how long the employee worked for the previous employer.

Age

Older employees tend to get larger severance packages since it is more difficult for them to find new employment. Therefore, you will need to know the former employee's age.

Position

In addition to the employee's current position, you should review his or her history with your organization. This can be important if incompetence is being alleged.

It is also useful to ascertain what positions, if any, reported to the employee's position, since managerial positions tend to attract longer notice periods.

Compensation and Benefits

In order to calculate the appropriate severance package, you will need to determine the employee's rate of pay prior to termination. When looking at compensation, the employee's overtime record should be taken into consideration, especially if the employee regularly worked overtime. The employee may also have accumulated time in lieu of overtime that will need to be paid out at termination.

It is not just salary that is awarded to terminated employees, but all forms of compensation that would have been received had the employee continued to work during the applicable notice period.

Bonuses, profit sharing, and stock option plans are being offered to employees with greater frequency. Often an employee's eligibility for a payout will depend on the terms of the plan (for example, the date on which options vest will be significant) so you will need to review the related materials and agreements.