Making changes to your staff can be difficult, but it is a necessary element for any organization. Changing or ending an employment relationship affects real people, it is not just an academic exercise. In addition to the human impacts of ending employment relationships, there are financial and legal ramifications if the correct processes are not followed. This blog is meant to act as a framework or a guide. If you have questions or concerns, may sure that you check your government requirements and, when necessary, consult an actual employment lawyer.
INTRODUCTION:
Terminating someone’s employment is a process.
The process is important, particularly if terminating someone is not something your organization does often. This post covers some keys ideas to keep in mind when creating a termination process within your organization.
- As an owner or manager, realize that associate termination is a fundamental part of running a successful organization. Not every associate will be a “good” fit. As an owner, manager, or leader, you have to take care of the difficult tasks: this is just one of them
,and is a necessary (if unpleasant) part of the job. - Create your process before you need to implement it. Employment relationships may end “with cause” and “without cause”. “With cause” terminations can include issues such as misconduct, theft, harassment, etc. “Without cause” terminations might occur for economic reasons, changes in the structure of the organization, and other reasons. Your organization should have processes for both types of situations and they should be included as part of your Associate Handbook.
- Never terminate someone when you are angry or upset.
- Have regular and meaningful performance conversations or reviews with all of your associates. If you are unhappy with an associate’s performance, a simple conversation early on can make all the difference
,and help avoid termination further down the road. - Before starting the process, discuss the associate with one or two of your key people: before making any moves, ensure that they agree and support the decision. It’s important to stress that these conversations should remain confidential – the process is about performance, not gossip.
- Do not procrastinate. Avoiding terminating someone who needs to be let go will lead to staff morale issues. It may cause other associates (who you want to keep in your organization) to leave. Keeping the wrong people can negatively affect the growth of your organization, and is a huge mental burden for the owners and/or managers to continually have to deal with their presence. Once the decision to end someone’s employment has been made, determine what the associate is entitled to receive and then implement the decision. It’s not fair to the associate, to you or to your organization to delay the process.
- Terminating an employment relationship must be done properly. Done well, everyone can move forward with their lives; done poorly, it can negatively affect an organization and all of the people involved for years to come. The legal and financial implications can also be substantial.
- Terminating a relationship with an associate should not be easy. You fundamentally change someone’s life when you end their employment, regardless of the circumstances. Keep this in mind.
- You can terminate anyone, but you must follow the employment laws and you must respect the rights of your associate.
THINGS TO HAVE IN PLACE:
- As mentioned, your associate warning and termination process should be in your Associate Handbook. As part of your “On-boarding Process,” each of your associates should understand all of your procedures and policies. They should have a clear job description and proper training, as well as regular performance reviews, regardless of the size of your organization.
- Document incidents in writing; with dates, details and names of witnesses. Focus on facts, not opinions. Copies of reviews and the escalating logic chain that led to the decision to terminate should be included. If you do not have adequate documentation, rethink your decision to terminate. You may find yourself on the losing end of an appeal with your labour board if you don’t.
- As part of performance reviews, ensure you give the associate opportunities to correct whatever behavior is causing the problem, depending on the circumstances. Your associate handbook should explain that some behaviors (such as theft or assault) can lead to immediate termination that circumvents this warning process.
PREPARATION:
- ALWAYS TREAT PEOPLE WITH DIGNITY AND RESPECT.
- In your jurisdiction: What, if any, severance rights are the associate entitled to? This varies from place to place. You may have to pay money in lieu of notice and depending on the role of the person. There may be supplemental money that the associate is entitled to receive. Remember, you can terminate any associate relationship, but you have to compensate them according to your labour laws. If in doubt, be more generous than the law requires. If the law says one week is required, consider providing two. You may have to extend the associate’s benefits to accommodate a “payment in lieu of notice” period.
- If you have any questions, check with your local labour board before proceeding. If you have a lawyer on retainer, obtain legal advice. You need to know and respect the rights of the associate and protect your own.
TERMINATION:
- Have all of your documentation ready: a letter for the associate (as brief as possible) and a copy for the organization; information on when they can expect their final pay including any vacation entitlements, and when their record of employment will be ready.
- Know what you require back from the associate: keys, phones, benefits card, company credit cards, uniforms, etc. Having a de-hiring checklist helps.
- Check their schedule and see when the person is working next. Always do the termination at the beginning of the day/shift, especially in small or medium-sized organizations. Delaying a termination only makes it more difficult, so it’s always better to do it as soon as possible.
- Use a neutral space for the actual process (if possible). The associate may need time to collect themselves, and this is best done with some degree of privacy.
- Always terminate someone in person (if possible). Try to avoid informing someone over the phone and never do it by email.
- Have a witness: any type of disciplinary action should have a witness. Ensure that the witness knows they are only there to observe. Only have one person do the talking.
- Ask the associate to come to the office: don’t go to them.
- Remember that there is no good way to tell someone that they’re being let go. I always said, “There is no easy way to tell you this, but we are going to let you go.” Generally, termination is the end of a warning process and should not be a surprise; however, people’s reactions cannot be predicted and can range from acceptance to outright rage. You need to be prepared for any kind of reaction. NEVER TERMINATE ANYONE when you are alone with the associate.
- Keep the conversation to a minimum. THE DECISION HAS BEEN MADE: do not allow the conversation to fall into a defending situation. Be polite, be respectful, but you may need to say, “I know that you are upset and that you do not agree; however, as a company, we have made the decision to terminate your employment.”
- Explain how their final pay will work, the amount of vacation pay, and when the last pay is going to be deposited. Ask for any items from the de-hiring checklist back, and ask them to sign the termination paperwork.
- Explain they will be paid for the full day of their termination. The cost is relatively small and it avoids complications about minimum shift payments.
- Ask them to sign both copies of the termination document. If they refuse to do so, do not create an incident: simply write that the associate refused to sign, then you and the witness sign and date the document.
- If necessary, give them a moment to collect themselves.
- It is worth mentioning that just because this opportunity did not work out doesn’t mean that they are a failure. Many very good people have been terminated (it happens) but try to assure them it is not the end of the world. Offer some resources that are available to help.
- Depending on their position, arrange for the associate to collect their items and say goodbye to their coworkers. HAVE YOUR WITNESS accompany them: it is rare for people to make a scene, but it happens and you should be prepared. Give the associate a reasonable amount of time to collect their things, but do not allow them to linger.
- Following goodbyes, ensure they have left the building
- Make a VERY BRIEF announcement to staff, but do not violate the associate’s privacy rights. For example, “John is no longer with the company, but we wish him all the best with his future.”
- Use your de-hire checklist to ensure that the staff knows how to respond to outside requests for the associate. Your checklist should also include notes on email forwarding, and other details such as closing of e-learning accounts.
AFTERMATH – Dealing with your feelings
- In the past, I always felt that when I terminated someone’s employment
,I had somehow let them down, particularly as the person who had hired them. It’s natural to feel this way, but if you have done everything in your power to make the situation work, you cannot carry that burden. If you gave someone the opportunity and you tried, you do not need to feel guilty. - Knowing that the person has a family or children can add to the guilt you may feel, but take some reassurance from someone who has had to do this many times: if you were terminating an associate for cause, they made that decision, not you. If you did not do what was necessary, then you may have jeopardized your own position. Do it with dignity, respect, and understand that it is part of what has to happen. It is supposed to be difficult: if a person doesn’t feel this way, they should not be doing the job.
- Expect that other associates may be upset. They may not agree, and if they come to you to vent, allow them to do so. This is rare, but it can happen and you should expect it.
USEFUL RESOURCES:
ONTARIO EMPLOYMENT STANDARDS ACT – This comprehensive website is a great resource for employers and associates to understand their rights and obligations in the province of Ontario. Other provinces and states will have similar websites.
Listed below are a few posts on this blog that may help your organization prevent having to terminate associate relationships by putting in place procedures that help to ensure that your associate relationships prosper.
Post on How to Hire an Associate – One of the key management functions for any organization.
Start the search for the right person with a plan – Start by building a great job description and then tailoring the job search for those skills, attitudes, and behaviors.
Tips for Interviewing – Knowing the right questions to ask when hiring.
On-boarding – Start on the right foot on day 1 – Your on–boarding process can have a huge effect on retaining new associates and existing associates.
Example of Laying out an effective training program – Properly training your associates from Day 1, is a vital component of building an effective organization. It is the primary reason for this blog and we will be adding more posts for different positions to join the ones already available.
Building Your Team – Training and development never stops.
Dealing with Problems – Useful tips that can help – When problems happen, (and they will) here are some tips to help solve them.