Firing employees is never an easy task for employers but there are some situations where you MUST FIRE them. Writing the termination letter can be a challenging task. You want to ensure you have included items that the employee’s lawyer, federal or state agency will review and decide the termination was warranted. Termination letters are an important final step in making and communicating a well-reasoned, defensible termination decision. Do not fear to explain the reasons for your decision and to do so in writing. Below are some suggestions to include in the CRITICAL termination letter:
Confirm the at-will- employment relationship
For example, a brief introductory paragraph can reinforce that status and set the stage for the rest of the letter:
“The purpose of this letter is to notify you of our decision to terminate your employment, effective immediately. Like all employees at our company, you are employed on an at-will basis. While we are not required to give you a reason for our decision, we think it is important for you to understand why we reached this conclusion.”
State directly and factually the termination reason
The letter should include a detailed summary of the employee’s conduct or performance supporting the decision. Stick to the events and previous disciplinary action or performance issues that contributed to the termination decision. Leave out the adverbs and adjectives. When appropriate, the letter should refer to the specific company policy that that the employee violated. If previous disciplinary action or performance management efforts support the decision, the letter should review those steps as well. When the decision is based on misconduct, the letter should contain a summary of the findings from your investigation:
“We have concluded, following our investigation, that your conduct toward other employees on October 1, 2016, violated the company’s anti-harassment and discrimination and policy. In particular, the display of sexually suggestive photographs in your texts and the explicit language you used in describing those images to others were direct violations of company policy. Also, in August 2016, you received a written warning addressing, and additional training on, your obligations to avoid such conduct.”
Performance-based terminations may require a broader explanation:
“We have concluded that your performance does not meet the requirements of the technician position. In your 2015 performance appraisal, your supervisor noted that you needed to improve your technical skills and attention to detail. The company provided you with two additional weeks of task-specific training with a coach during the first quarter of 2016. However, the performance problems continued throughout that year. Your supervisor gave you three written reminders of the need to improve your performance in 2015 and again noted the need for improvement in your 2015 performance appraisal. Since that appraisal, it has become apparent that your job performance simply is not consistent with the requirements of your position.”
Support your statements
(1) Have a policy that defines expectations and (2) can relate those expectations to business needs. Additionally, relating an employee’s actions to the impact those actions have on coworkers helps explain many termination decisions.
Implement the termination
- The letter should note if the employee’s final paycheck is enclosed or, if not, when it will be mailed or deposited. If state law or company policy requires the payout of vacation or other forms of paid time off, the letter should explain the amounts that will be included in the check.
- The continuation of insurance benefits is one of the first questions raised by a recently terminated employee, so informing s/he when they can expect benefits information and who will send that information may prevent some confusion.
- If the employee has been issued company property, the letter should list the specific property that must be returned. Don’t forget things like works in progress, software, data, or data storage media (e.g., thumb drives) that the employee may have transferred to a personal computer or otherwise removed from the work premises.
- The employee should be notified of the arrangements for returning to his office, workspace, or locker to gather his personal belongings or how the employer will return those items, if applicable.
- Remind employees of their post-termination obligations under any confidentiality agreements and/or covenants not to compete.
- If company policy or a collective bargaining agreement provides grievance or appeals rights, the termination letter can include a summary of those rights or copies of the pertinent policies or documents.
