Writing a termination letter can be a daunting task when you realize that so much can rise or fall on what it says. A few straightforward strategies can help you prepare a termination letter that provides all the benefits and helps you manage the risks that accompany all termination decisions.
In our previous article, we discussed the importance of delivering the news directly and factually without piling on old issues. In addition, avoid inflammatory characterizations of the employee’s conduct. Instead, be sure to identify the policy or performance expectation the employee violated and how his conduct fell short. What else can you do to prepare a termination letter?
So What?
In situations involving performance problems unique to a particular job or misconduct that may not be understood outside your workplace, it may be necessary to explain the significance of your reasons for the termination by describing the impact on coworkers or the organization. Recall that a termination letter will have several audiences after the employee receives it. Part of the purpose of the letter is to help those audiences understand the decision:
Repeated tardiness, even just a few minutes, and failure to call in before missing a shift cause a ripple effect through the entire production department. One employee being late causes stress for all the others because they have to work faster to catch up so their down-line coworkers have the parts needed to complete their work. Also, delays in production of even a few units per day add up over time and make it more difficult for the entire organization to meet its goals.
The employee may quibble with your description of the impact of her actions, but the support for your statement should be self-evident if you have a policy that defines your expectations and you can relate those expectations to your business needs. Also, connecting the employee's actions to their impact on coworkers helps balance the bottom-line focus of many termination decisions.
Implement the Termination
Once the reasons are explained, the termination letter should address the administrative details:
- The letter should note if the employee's final paycheck is enclosed and, if not, when the paycheck will be mailed or deposited. The letter should explain how much accrued vacation or paid time off will be included in the check.
- The continuation of insurance benefits is one of the first questions raised by recently terminated employees, so informing the employee of when to expect benefits information and who will send that information may prevent some anxiety and confusion.
- If the employee has been issued company property, the letter should specifically list the property that must be returned. Don't forget things like work in progress, intellectual property, software, and data or data storage media 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 you will return personal items, if appropriate.
- The employee should be reminded of his post-termination obligations under any confidentiality agreements or covenants not to compete.
- If the company has a grievance procedure, attach a copy of it to the termination letter. If you provide the employee a copy of the grievance procedure within 7 days of his termination, his failure to use the grievance procedure is a complete defense to wrongful discharge.
Avoid Offers of Severance Pay
Employers will often consider an offer of severance pay conditioned on the employee's willingness to waive all legal claims related to the termination. While you may see such an offer as a matter of compassion or risk management, employees sometimes view a severance offer as a sign of weakness and the amount as an insult.
Because of the potential for mixed messages, we advise employers not to include offers of severance in the termination letter. Once the termination is complete, you can negotiate severance pay from a position of strength.
Bottom Line
Termination letters are the important final step to making and communicating a well-reasoned, defensible termination decision. We encourage you to consult counsel whenever you're making termination decisions and involve your attorney in reviewing the termination letter. With those safeguards, termination letters can help you strongly promote and defend your decisions, regardless of the audience.
Reprinted with permission from BLR.com.
