Introduction to Matters after the Onboarding for US Company III
Terminating an employee—even with valid justification—remains a highly challenging decision. This process creates stress not only for the affected employee and the supervising decision-maker but also generates ripple effects among colleagues. This article will briefly introduce critical procedures companies should follow when considering employee termination.
- Core Considerations in Termination Decisions
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Core Considerations in Termination Decisions
Certain states mandate that employers provide specific information to employees at the time of their termination. This includes written notification regarding the alteration of the employment relationship, details pertaining to unemployment benefits, and rights associated with the conversion of group insurance policies.
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Final Wage Settlement
Ideally, terminated employees should receive full payment of all owed wages, including severance (if company policy permits unconditional severance payments), during the termination meeting. Note that jurisdictions such as California impose administrative penalties for failing to settle all outstanding wages (including accrued unused vacation pay) on the termination date. |
- Avoiding Common Termination Process Errors
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Verification of Policy Basis
Confirm whether the alleged misconduct explicitly violates established policies. For example, an accusation of "theft" against an employee who retrieved items from a parking lot dumpster may lack legal standing if no policy governs such scenarios.
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Confirmation of Violation
Verify whether the employee materially violated established standards. For instance, an employee with five late arrivals in a month might claim that two instances involved pre-shift discussions with a supervisor in the parking lot. To ensure fairness, termination meetings should not serve as the employee’s first opportunity to present their case; conduct a thorough investigation beforehand. |
- Delivering Termination Notices
Communicate the termination decision immediately after initial courtesies at the start of the meeting. Provide a clear, concise rationale for the termination, even if prior discussions about performance or conduct issues have occurred. Failure to articulate the basis for termination may lead employees to speculate negatively about the company’s motives.
- Post-Termination Protocol Implementation
Establish a systematic offboarding process, including reaffirmation of confidentiality obligations through written reminders (e.g., providing copies of signed agreements), immediate revocation of system access, recovery of company assets, and notifications to relevant departments to update permissions.
- Severance Agreement Execution
Some companies require terminated employees to sign a waiver and release of claims in exchange for severance payments. This document, typically referred to as a severance agreement, must be executed within a specified timeframe for the employee to receive compensation. Legally required final wages and severance payments under the agreement must be issued separately, potentially resulting in two distinct payments. The agreement text must undergo legal review to ensure compliance with anti-discrimination laws such as the Age Discrimination in Employment Act (ADEA).
Reference:
[1] Andrea Butcher. Human Resources Kit. John Wiley & Sons, Inc., 2023.
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