Business and Employment Newsletter

FALL 2009

In making the difficult decision to terminate employment, employers walk a potential minefield.  Employers are wise to seek the guidance of an experienced employment attorney early in the process.  While prudent companies ensure there is strict compliance with legal standards at all times, they often overlook the importance of treating the terminated employee with civility. Employers who handle such sensitive matters with care and who treat the former employee with dignity often find that the former employee will speak highly of the company to others.  In contrast, former employees who believe they were treated unfairly by their former employer are much more likely to sue or file claims regardless of whether a basis exists for such actions.

The terminated employee should know what co-workers will be told about the termination.  (Other employees may perceive that the reason for the termination is the company’s own struggles.)  It is important to make sure that accurate information is timely provided to employees to prevent dissention.  At the same time, employers should carefully consider what is said, to whom and when.  If a number of employees are affected by the termination, the employer may consider holding a meeting where the employees are briefly told, in objective terms, without violating confidences, what has occurred.  While employers would like to believe that what is discussed at the company will stay within the four walls of the building, the terminated employee will often continue to associate with his or her former co-workers and will be well aware of what is happening at the company. 

The terminated employee should also know what potential employers will be told.  Often times, the safest course of action for the employer when speaking to a potential employer of the former employee, assuming the former employee has authorized the disclosure of such information, is for the former employer to restrict its comments to the position held by the former employee, the dates of employment and the compensation received by the former employee.  The employer should have a clear policy to which it adheres. 

This information is for general purposes only and is not intended as legal advice.  Any liability that might arise from your use or reliance on this information is expressly disclaimed.  The reader is cautioned to seek the guidance of an experienced attorney when making any decision which might have legal implications.