Terminating an Employee: How to Minimize Litigation



Terminating an employee is always a difficult job for an employer.  One of the biggest concerns an employer may have is that the employee will sue the company for wrongful termination.  There are some things an employer can do to reduce the chances of litigation.  First, the company should have a clear, written policy regarding termination, including procedures to be followed.  Someone at the company should be responsible for clearly and methodically documenting an employee’s poor performance or wrongful behavior.  Occurrences should be reduced to writing and the employee should be promptly notified and/or warned,  in writing.  Additionally, it is often helpful to offer the employee some amount of severance pay and have that employee sign a release, promising not to bring legal action, as part of the severance package.