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Tactful Terminations Aren’t Just Humane,
They’re Smart

Terminating an employee is never easy, but it can be an unmitigated disaster if not handled correctly. Just scan the headlines about workplace lawsuits, Department of Labor actions and even shootings.

Most though not all terminations are based on cause, usually good cause. It may be repeated problems or an omission so bad that a business owner or manager must act. But even with the best reasons, a poorly handled termination can cause long-lasting problems. Bad morale with remaining employees, lawsuits and even workplace violence are part of today’s climate, and one widespread cause involves terminations that were mishandled by the company.

Of course, some terminations are almost impossible to handle right. If yours is a small company, it’s likely that you or a supervisor have been wrestling with a problem employee for some time. Bad blood between manager or owner and the employee is almost sure to be a factor at this point.

Even without this, terminations are tough. As you probably know, employees have extensive protections. Laws and regulations offer a minefield for businesses seeking to stay on track. Statutes vary by state and relying on them can be tricky. Add in the above “bad blood” after extended weeks or months of confrontation and you have a difficult path that many businesses try to avoid and too often mishandle.

There are options – strategies that seek to make the process intelligent, humane, and less likely to bring disaster:

• Take the high road. For example, never attack an employee with disparaging remarks and never break confidentiality about a staff member. That includes statements like, “He (or she) is crazy…”

• Never speak to the employee through third parties, including the media. Publicizing the firing of an employee works against the employer and in most cases violates the employee's rights to confidentiality. This includes talking to other employees.

• Whenever possible, negotiate. A structured exit for an employee is almost always a win-win for the employer and the employee. A termination is often a win-lose situation that the employee can turn against the employer. The employee may be able to file a wrongful discharge during the statute of limitations, which is up to two years.

Although you may see abrupt termination as justified, businesses may need to give, to achieve a desired result. A settlement, or something like training for a new career, may be a better choice than actions which could bring a labor complaint or expensive lawsuit.

Most of all, make any action you take cool and collected. Don’t bet your business that a legal action will automatically come out your way.


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Midwest Small Busness Finance | 7001 N Locust St. | Gladstone, MO 64118 | Phone: 816-468-4989