Terminating an employee is never an easy job for any employer or HR representative. In the first place, selection, recruitment, training and onboarding is an expensive process as it is. Also, if the termination is not backed up by relevant and adequate reasons, or is not executed properly, it may lead to unpleasant situations. The employee may seek legal discourse for unfair termination or may spread negative word of mouth that may in turn severe the good-will of the company.
Termination of an employee can be attributed to a number of factors. It, however, especially gets gruelling for the employer when the termination is due to poor performance. When various attempts by the employer fail to work and the employee is not very keen to reform his/her performance, the best alternative is to terminate him/her from services.
However difficult it might be, it is legally possible, but only when proper precautions are taken. On the event of the contrary, the employer is most likely to be standing at the losing end of a legal case or stuck with an incompetent employee. On the event that the employer fails to provide proper pieces of evidence, the employee shall receive due compensations by labour laws for unfair dismissal.
But before that, it is important to list the pointers that, in fact, classify as “poor performance”:
- The unwillingness of the employee to be productive.
- Inability to complete tasks.
- Inability to meet deadlines.
- Unwillingness/Inability to correct errors.
- Inability to work in collaboration.
- Inability to learn new skills.
- Inability to come up with a good judgement.
If the above scenarios occur, the employers can fire the employee, but only after giving him/her enough scope for change or reform.
Steps to Effectively Terminate an Employee
1. PROPER JOB DESCRIPTION
At the beginning of the job, the employee shall be provided with a clear description of his/her job and his/her role, the duties to be performed, and the expectations of the organisation.
2. TRAINING
Every employee should be provided systematic training by the organisation. This is to ensure that the employees learn skills as necessary to meet the demands of the job and also work to the best of their ability.
3. PERFORMANCE EVALUATION
Performance evaluation is an important tool for tracking employee productivity. It is two-way communication between the HR representative and the employee. The employer may point out the domains of improvement for the employee, his/her current inefficiencies or immediate goals to be achieved.
4. IDENTIFYING THE PROBLEM
Unsatisfactory performance or inefficiencies can be distinguished during such evaluation or through explicit conduct. At a point, when these inefficiencies are identified, the employer should transparently communicate that to the employee. He/She may also give him a course of action for improvement or tell him/her the need to improve. However, all of these exchanges, and assessments should be properly documented.
5. PERFORMANCE IMPROVEMENT PLAN OR PIP
After the formal assessment, the employer must provide opportunity to the employee for improvement by putting him under a PIP. However, the PIP needs to communicate as such information to the employee as follows:
- Reasons as to why his/her performance seems unsatisfactory
- The expectations of the organisation
- Tangible objectives
- Time-span of PIP evaluation
- Process of the training
- Consequent courses of action if the employee fails to improve
6. EVALUATION POST PIP
The employer needs to evaluate post PIP whether there is any significant change in the performance of the employee. If the employer/HR notices any change but feels it does not meet the present standards, the employer may put him/her under another evaluation period. However, it lies at the discretion of the HR representative himself. In case he/she feels that there is no significant change and no scope for improvement, he/she may resort to the termination of the employee. Any communication taken place shall be unfailingly documented by the employer.
7. KEEPING ALL THE DOCUMENTATION READY
When the decision for termination has been made, the employer must have all the documents ready at his/her fingertips before executing the termination. This is to have a legal upper hand incase the employee claims to file a complaint. Meticulous documentation of reports, evaluations, PIP and other communications and complaints will make the termination process easier for the employer.
8. SCHEDULING A TERMINATION MEETING
It is best to schedule a termination meeting with the employee at the end of the working day when the other co-workers are leaving. In the meeting, the employer should avoid small talk and get to the point directly. He/she should clearly state the reason for termination respectfully and with dignity. All the complaints, evaluations, chances provided should be briefly and clearly stated. It does sound like a tempting idea to carry out a termination over a call, or e-mail but a face-to-face meeting happens to be the most professional way to do it. Upon doing that, let the employee know how his/her previous contributions were credible. The employer should also communicate all the essential details, like leaves, compensatory pay, office equipment that have to be returned, so on and so forth
9. LISTEN
After the news of termination has been broken to the employee, it is most likely that he/she would have things to say. The employer should listen to them, answer any questions that they have. However, if the employee gets a place where he pleads for another chance, the employer must clearly communicate that the decision taken is final and binding and there is no further room for negotiations. Whatever conversation might take place, the employer should exercise a great deal of restraint and professionalism in his behaviour. Also, ideally, a termination meeting should not extend beyond 30 minutes.
10. BE CAREFUL
While terminating an employee an employer must be extremely careful in his discourse. He/she shall not say/do anything that might be used against him/her. For example, while termination the employer should only talk about documented and objective reasons for termination. He/she should not pick at the personal traits of the employee, his/her personal opinion of the employee or comparison with other employees. Such conversations may lead to exchanges that are immaterial and unnecessary. The employee may also use this to put the HR representative under a wrongful discrimination lawsuit.
11. END WELL
The employer should lastly hand a termination letter to the employee. He must also let him know when you expect it to be submitted. He must exercise enough grace and poise and end the meeting with a handshake and escort the employee out of this office.
Sample Termination Letter Template
*Your name*
*Street address*
*Zip code*
*Date*
*Recipient name*
*Title*
*Company name*
*Street address*
*Zip-code*
Dear *recipient name*
We regret to inform you that your employment with *company name* is being terminated, effective *date*. The termination is taking place on account of poor performance as outlined below :
- *Performance issue*
- *Performance issue*
- *Performance issue*
You were issued written warnings of these performance issues on *date*, *date* , *date*. Copies of these warnings signed by you are in your personnel file. Your signature on each warning indicates that you had discussed it with your manager, including steps that might be taken to improve your performance. As stated in your final warning, you were required to improve your performance by *date*. Failure to do so has resulted in your termination.
To appeal this termination, you must return written notification of your intention to appeal to *Name* in HR no later than *time* on *date*.
Sincerely,
*Your name*
*Title*
Cc: *Manager name*
It is important to be noted that even after proper documentation and systematic chances given to the employee, the employer still is susceptible to a risk. This can occur when the offer letter provided to the employee does not state all the clear situations under which an employee is likely to be terminated.
Formulating a proper offer letter is not only professional but also important in future contingencies as such. Hence, for the protection of the employer’s interests, offer- letter should state the clear terms and conditions of termination. This includes clauses for termination under probation, clauses for termination post probation etc. On the acceptance of these shall an employee be able to join the company.
Terminating an employee in most cases seems like one of the most gruelling tasks an employer has to do. However, difficult it might seem, an incompetent and stagnant employee should be terminated nevertheless. However, with proper precautions taken, and systematic steps followed, as mentioned, an employer can easily weed out inefficient employees and also not fall prey to lawsuits that only add to the trouble.
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