31 Jul Lessen Wrongful Discharge Threats
You can lessen the risk employees will find reasons to seek a wrongful discharge action against your business or organization. Here are seven steps to consider taking:
1. Include employment at-will statements on job applications and in employee handbooks. One such statement follows:
“In consideration of my employment, I agree to conform to the rules and regulations of XYZ Company. I understand that my employment is an at-will relationship. I understand that at the option of either XYZ Company or myself, my employment and compensation can be terminated at any time, with or without cause, with or without advance notice.
“I also understand that no XYZ Company manager or representative other than the president has authority to enter into any employment agreement for any specified period of time, or to make any agreement contrary to the foregoing.”
You need to make certain statements on all similar messages which are given to employees conform to this at-will statement.
2. Strike the words “permanent employment” and “permanent employee” from handbooks, applications and job descriptions. Train supervisors to avoid promising or implying permanent employment when they hire workers.
3. Evaluate employment contracts for management personnel. Include provisions which identify causes for discharge. Assert that employment is not for a specific period of time. Provide for third party resolution of disputes. Limit recoverable damages by either party in the event of a breach.
4. Review your evaluation process. Make certain an evaluation includes constructive guidance on how employees can improve work performance. Train supervisors to use objective — not subjective — criticism.
Example: Subjective language: “Jane’s typing needs improvement.” Objective language: “Jane will increase her typing speed to 55 words per minute.”
5. Use progressive disciplinary procedures. These procedures include oral warnings, written warnings, suspension without pay and termination. When implementing such procedures, tell employees which types of behavior merit discipline.
Examples: First instance of excessive tardiness, oral warning. Physical fights, termination.
Make certain supervisors consistently enforce these procedures. Your case in court is weaker if worker Pete says he was unfairly discharged for drinking on the job when worker Bob only received a written warning for drinking a beer at break time.
6. Implement a problem resolution procedure. When employees can appeal a discharge or poor performance rating at an impartial hearing, they are less likely to seek relief in court.
Some firms employ ombudsmen to handle employee complaints. Other firms arrange for outside arbiters to decide disputes. Still other firms have panels of in-house personnel to hear disputes.
7. Approach all discharges with caution. Never fire an employee in a fit of anger. First suspend the employee, investigate the incident and then decide if the questionable behavior warrants discharge. Take statements from witnesses. Give the employee an opportunity to respond to charges.
Most important, seek counsel from qualified, neutral advisors before discharging problem workers.
[NOTE: Information and guidance in this article is intended to provide accurate and helpful information on the subjects covered. It is not intended to provide a legal service for readers’ individual needs. For legal guidance in your specific situations, always consult with an attorney who is familiar with employment law and labor issues.]