Though many employment contracts include language that allows businesses to fire employees at will, it won't always protect you from costly litigation, John Boitnott of Entrepreneur says.
Going the extra mile with these five steps can keep you from getting sued by a disgruntled former employee, Mr. Boitnott writes:
1. Consider a probationary period
"Because it's often difficult to determine an employee's work style before he begins work, many businesses choose to institute a probationary period during which employees may be fired. This doesn't offer total protection from lawsuits, but probationary employees have fewer rights than full employees do."
2. Document everything you can
"Often an employee begins showing signs of a problem well before the employer is ready to dismiss that employee. As behaviors are observed, make note of dates, times and actions that are relevant to that employee's eventual dismissal."
3. Know the applicable laws
"If you're firing an employee protected under the Family and Medical Leave Act, you may be required to reinstate that employee once he or she is cleared to return to work. If the firing is in retaliation for an action the employee took, you may also be liable for wrongful termination."
4. Say the right thing
"When it's time to fire the employee, what you say can be held against you. State that you're dismissing the employee 'for cause' but don't state specifics."
5. Involve HR
"A severance package can go a long way in minimizing an employee's potential anger. On the day of the dismissal meeting, invite a representative from HR to sit in and handle the paperwork. This will allow the employee to shift his or her focus to logistics rather than on having been let go. For small businesses without HR departments, having an office manager sit in on the process could be just as effective."
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