Terminating
an employee? Here's what you must consider before firing.
Veteran managers know that you will eventually have to fire
an employee. A critical step in this termination process is
writing a termination letter. It is important to do this task
right because it is a tool for documentation, communication,
and managing expectations when you let an employee go.
Writing a Termination Letter: A Key to Proper Preparation
Before firing of an employee, you must collect all your documentation
including reasons for the termination. Documentation is important.
First you do not want to rely on memory alone because you will
inevitably leave something out. Second you need this letter
and the accompanying documentation for legal purposes. It becomes
your company's evidence if the employee files a wrongful termination
lawsuit, so treat it with care.
When writing an employee termination letter, you use commonly
accepted business writing principles. In other words, get to
the point. This is not an opportunity for creative writing
skills. Clearly explain the when, why, and what of the termination.
Address the effective date of the firing and the reasons for
it. Then describe the severance pay, any extra benefits and
important contact numbers. When you are writing the termination
letter you need to, at a minimum, cover these topics.
How a Layoff Letter Can Differ
If you are writing a termination letter for a downsizing or
layoff, you will use a different tone. But the basic form of
the letter remains the same. You cover the when, why, and what
of the layoff. Give the last day of employment for the individual.
Companies vary on how they handle this. Some provide advanced
warning so the employee can prepare while others will just
let employees know that day. How your company deals with this
depends on its specific problems and its general business environment.
Once you give the date of the layoff, provide your reasons
for it. Clearly explain the criteria used to select employees.
Stress the company decided to do a layoff for economic reasons
and not because of that employee's poor performance. Since
the cause of termination is poor business results, you want
to bring positive attention to the employee's past work. Try
to reassure the employee that he or she will do well in the
future. Here you might also consider including a written letter
of recommendation.
Finally, you must address how you will handle final pay will
and describe any special severance packages. Make sure you
list telephone numbers useful for the employee. You should
also attach any applicable company policies and state or Federal
policies relevant to the downsizing. For example, the Older
Workers Benefit Protection Act (OWBPA) covers the benefits
you need to make employees over age 40 aware of.
Writing a termination letter is a most important step in the
fair and respectful termination of an employee. Take the
time to do it right.
The
employer's guidebook to progressive discipline and employee termination
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