Avoiding the Legal Pitfalls of Wrongful Termination

Dismissing an employee may sometimes inviteoutgoing employee is to offer outplacement
lawsuits, which are often costly and drain preciouscounseling.
company resources. However, firing an employee10. If a company discovers it has made a mistake
and staying out of lawsuit can be attained.in hiring an employee, it is better to acknowledge
Here are tips for handling employee dismissal withthe mistake at any level, and then move on.
the lesser chance of being sued:11. Discharging an employee may bring with it the
1. It is best to suspend an offending employeerisk of legal expenses - regardless of whether
first, investigate the incident, and then decidethere is just cause or the company would just
what to do later.like to prevail in the end.
2. The drafting of terms of separation must be12. Most of the time, employee separation
done long before a lawsuit is filed.agreements are worth the trouble, effort, time
3. The manager should control the timing of theand expenses. It saved the valuable resources of
termination interview and plan it ahead of time.the company.
4. A "buyout" of the employment relationship isNegotiating Points
the best course of action to take.Severance pay is usually equivalent to one week's
5. In a termination interview, the manager shouldsalary per year of service. Payment of the
inform the employee about the purpose of theemployee's maintaining health insurance is
meeting is to inform the employee about hismandated under the COBRA rules. An employer is
termination and the company's willingness to enternot required to give severance pay to an
into a termination agreement.employee unless an employment contract requires
6. The key point of a termination meeting is thatit.
the employee is no longer negotiating theOn the other hand, an employee may negotiate a
discharge but the terms of separation.severance package in exchange for any legal
7. Generally, the most important negotiating pointsclaims against your employer.
of the termination agreement are the severanceThe purpose of a severance package is to create
pay and the continuation of medical insurance untilgoodwill between the employee and the
the employees finds another job.management. The idea of the severance package
8. The company may waive its right to object tois aimed at ameliorating any resentment the
any unemployment-compensation claim.departing employee might feel against the
9. The best step an employer can do to help ancompany.