Employee Termination: A Comprehensive Guide

October 17, 2023 | Get the Kit!

Employee termination is a complex and sensitive process that employers must navigate with care and precision.

How do you manage an employee termination in the most professional manner?

In this guide, we will explore essential steps and considerations to ensure a smooth and legally sound termination process.

Apart from cases of constructive dismissal, a face-to-face discussion with the employee, accompanied by a written notice, is essential, no matter the cause of termination. This not only ensures clear communication but also provides a legal record of the discussion for future reference.

To avoid potential legal complications, it’s crucial to maintain the utmost respect and professionalism during the termination process. It is advisable to allow the employee to collect their personal belongings outside of standard working hours.

Understanding “Dismissal for Cause” vs. “Dismissal Without Cause” Employers need to differentiate between “dismissal for cause” and “dismissal without cause” to determine the legal implications and potential compensation for the terminated employee.

Employers may have various justifications for ending an employee’s contract, which can range from financial difficulties, restructuring decisions, to interpersonal issues or acts of defiance. While these reasons may be sufficient for the employer’s perspective, the critical issue is whether they legally support a “dismissal for cause.” If not, the termination is considered “without cause,” and the employee becomes eligible for compensation in accordance with relevant employment standards acts, common law, or any pre-existing employment agreement.

To learn more about “Dismissal for Cause” vs. “Dismissal Without Cause” click this link.

When an employee is dismissed without cause, and it is also a bad faith termination, employees may be entitled to Wallace damages. These damages, named after the Wallace v. United Grain Growers case, aim to compensate employees who suffer mental distress as a result of bad faith terminations.

How can you avoid these damages when dealing with termination? Here are some steps that can be taken to avoid bad faith terminations:

  1. As stated above, terminations should be conducted privately, and an employee’s termination should be kept confidential.
  2. Providing warnings and opportunities for improvement is essential.
  3. Terminated employees should receive the appropriate notice or compensation, in line with employment laws.

To learn more steps to avoid Wallace Damages click here!

When it comes to employment termination, both employers and employees must consider the concept of “reasonable alternative employment.” This term refers to the practice of offering an employee a different job within the company when their current position is at risk. But how do we determine if such an offer is reasonable?

When assessing the reasonableness of an alternative job offer, several factors should be taken into account. These factors include:

  • Industry Standard: Is it common for employees in the industry or business to work in different locations or roles? If so, offering an employee a similar job at another location might be reasonable.
  • Job Nature: Does the offered job differ significantly from the current one, even with training? If so, it might not be considered reasonable.
  • Agreements: Any prior agreements made during the hiring process or outlined in an employment agreement are essential.
  • Wages, Benefits, and Working Conditions: The offered job’s compensation and working conditions should be comparable to the current position.

To read all the factors follow this link.

Employee resignations require careful handling as well. Employers must have clear and undeniable proof of the employee’s intention to leave. Employees are legally obliged to provide adequate notice before resigning, regardless of a formal employment contract.

Grounds for Dismissal Due to Misconduct, when an employee is dismissed on grounds of misconduct, they typically forgo any compensation.

Several factors come into play when evaluating the disputed behavior, including the seriousness of the misconduct, the nature of the behavior in question, and its alignment with the employer’s operational values or the employment agreement’s terms.

Click the link to learn more about misconduct.

In conclusion, employee termination is a multifaceted process, encompassing various legal, ethical, and practical considerations. Employers should approach it with respect, professionalism, and a thorough understanding of the legal framework to minimize risks and ensure fair outcomes for both parties involved. Legal advice may be sought, especially in complex cases, to navigate the challenges of this process successfully.

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One Comment

  1. Hosea Schaden February 2, 2024 at 10:31 pm

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