Letting an Employee Go With Respect

Having to let an employee go is an unpleasant, but often necessary, part of business. Proper handling of a termination will minimize legal repercussions and demonstrate your respect for the individual. There are several steps that you can take to act judiciously.

A healthy business endeavour with every employee starts with an employment contract. A well-written contract covering all aspects of a potential termination will help you avoid a lawsuit. Even so, before ever making the decision to terminate, the company must always provide proper warnings and opportunity to improve in writing, and above all, give the employee a chance to explain.

Your managers that undertake the unpleasant task of terminating an employee require policies and procedures. Clear and visible policies will help everyone to understand the consequences of their actions, and give managers the confidence that their decisions are fair, reasonable, and legal.  

Ontario’s Employment Standards Act imposes a mandatory minimum notice period, but the courts have stressed that the ESA is a minimum guideline only. In determining notice period, take into account factors such as the employee’s position, contribution to your organization, ability to find other work, and whether they were persuaded away from another job in order to work with your organization.

Any unkind or improper behaviour during the termination process, such as physically escorting an employee out of the building in front of peers, may be reason for a wrongful dismissal claim for mental distress. Many litigated cases for mental distress tend to be successful. Therefore, you must consider how you handle every aspect of the termination.

Many employers offer terminated employees outplacement services. Outplacement is a humane approach to facilitate the employee's transition by providing them with company-paid assistance. Outplacement is critical in mitigating damages to the company by helping the employee to obtain other employment as quickly as possible.

Do it right:

• Upon hiring each employee, strike a healthy business relationship by signing a well-written employment contract.
• Before ever making the decision to terminate for cause, always provide written warning and opportunity to explain and improve their behaviour.
• Develop well-written policies and procedures to help employees to understand the consequences of their actions and assure managers that their decisions are fair, reasonable, and legal.
• Provide a reasonable notice period in accordance with Ontario’s Employment Standards Act and take into account factors such as the employee’s position, contribution to your organization and ability to find other work.
• Avoid any unkind or improper behaviour during the termination process, such as physically escorting an employee out of the building in front of peers.
• Offer Outplacement services to facilitate the employee's transition. Outplacement is critical in mitigating damages to the company by helping the employee to obtain other employment as quickly as possible.

It is important to show every employee respect and dignity throughout his or her affiliation with your organization. The final phase of this relationship is no different. If you handle it well, you will show your organization’s humanity.

The Career Transition Program addresses all these issues and others, offering hands-on administrative support and specific advice on individual needs.

Our service is confidential and by appointment or arrangement only. To obtain further information or to schedule an appointment contact Graham Management Group.