07/ 13/ 2004
by Jim R. Sapp
Getting the right mix of employees takes time. At one time or another, every small-business owner must decide whether to discharge an employee. The saying “one bad apple can spoil the barrel” is especially true in a small company. If someone is dishonest or causes problems, it will affect the entire staff and hurt company morale. Here are some guidelines to help you make your decisions appropriately.
- Treat all employees fairly and consistently.
- When it becomes necessary to discharge an employee, be sure it is for legitimate, job-related reasons.
- Conduct regular, accurate and candid performance evaluations.
- Keep complete written records of all incidents of poor performance, as well as good performance.
- Be as humane as possible when discharging an employee. If possible, terminate the person at the end of a day or week when there are fewer employees around. It is less embarrassing for the employee.
- Be sure to state the real reasons for the discharge. Whenever possible, have another staff member present during a warning or termination. Never terminate someone behind closed doors that do not have a window in them.
- If you anticipate a problem terminating the employee, have another staff person in the room during the process -- particularly if the employee is of the opposite sex.
- Be as generous as possible if you have to discharge a long-time employee. It will already be emotional enough. You do not, however, owe the employee any extra compensation by law. Any unused vacation or sick leave that has been earned should be paid immediately.
- Be aware of the circumstances that may allow an employee to argue that race, sex, religion or age played a part in their discharge.
- Most states have “employment at will” regulations. This means you can terminate an employee for “no” reason. This is very beneficial, especially if you suspect the employee to be guilty of theft, drug use or dishonesty -- but can’t prove it. In such states, you can simply say, “I think it best we part company at this point. We no longer need your services.” But, be certain of your legal standing before you act.
- Don’t delay once you’ve made the decision to terminate.
- Never rehire an employee you have fired.
