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Are you considering the legal termination of employees but want to avoid wrongful termination claims? As trusted â€‹small business contract lawyers, Anthony Law Group helps terminate employees while adhering to local and federal laws. Here, we discuss legitimate reasons for terminating an employee and how to reduce the likelihood of legal actions.

What Are Common Legal Reasons for Initiating the Termination Process?

According to federal and state law, what are valid reasons for employment termination? As an at-will employment state, Arizona allows employers to end employment for nearly any reason.

However, some restrictions apply. If you want to avoid a wrongful termination lawsuit, never end an employment relationship for the following reasons:

• Discrimination: Various federal and state statutes prevent employers from terminating an employee based on age, race, religious affiliation, disability, and more.
• Retaliation: At-will employment does not cover terminating an employee as retaliation for sexual harassment lawsuits or whistleblowing.
• Refusing to perform illegal acts: Employment law protects employees from termination if they refuse to perform illegal acts on behalf of their employer.

Also, consider that the existence of an employment contract overrides a state’s at-will designation. If your employee signs a document saying they could work for an established duration, termination becomes much more complicated. This includes restrictions imposed by collective bargaining agreements.

Involuntary Termination for Poor Performance

Involuntary termination refers to firing a worker despite their preference. For example, when an employee’s work does not meet the company’s clear standards, you could let them go due to subpar job performance. However, follow the tips below to avoid employee retaliation after the legal termination of employees.

Employee Voluntary Termination for Any Reason

At-will employment means a worker can stop working for their employer for any reason without notification. They may have medical reasons or other job offers. Unless they have established agreements, an employer cannot sue an employee for voluntarily leaving the company.

Gross Misconduct or Dangerous Actions

When an employee’s job performance puts other people at risk, you likely meet the requirements for immediate dismissal. It will not require setting a termination date or meeting with an HR representative. Still, following some lawyer-approved employment procedures saves many employers the headache of retaliation from former employees.

How To Navigate the Legal Termination of Employees While Avoiding Problems

Even though termination of employment can occur for almost any reason, which does not mean an employee will not drag you through an expensive legal process after losing their job. By implementing the following procedures, an employer can protect themselves and potentially weaken an employee’s case for wrongful termination.

1. Make Employment Contracts Clear and Unassailable

To facilitate the legal termination of employees, clearly outline company policy in the employee handbook and contract documents. The employee termination procedures should include the following:

• Code of conduct for employees
• Work rules and clear procedures to ensure compliance
• Lists of offenses that lead to termination of employment and immediate dismissal based on local, federal, and state law
• Steps outlining an employer’s progressive disciplinary actions
• Procedures the HR manager uses to investigate misconduct
• Company policy surrounding the employee’s final paycheck, health insurance from a group health plan, and other benefits the employer offers post-termination.

2. Give Written Warnings of Impending Employment Termination

Terminating employees should rarely involve a last-minute or surprise decision. If an employee has no idea they are at risk of involuntary termination, they may take legal action regardless of the state’s at-will status.

To prevent this, incorporate a progressive discipline policy, with the final step clearly mentioning employment termination. Also, make regular performance reviews (at least annually) a company policy.

3. Before the Termination Meeting, Prepare Documentation

To avoid the pretense of wrongful termination, gather the appropriate documents before the termination meeting. These should include:

• Records of previous conversations
• Disciplinary warnings
• Termination form
• Information about collective bargaining agreements and legal requirements
• If applicable, the employee’s last paycheck, including severance package and unused vacation compensation

4. Establish Reliable Risk Protocols

Establish practices that prevent an angry employee from damaging company property. Even after voluntary termination or valid medical reasons lead to termination, a disgruntled worker may act impulsively. Having someone escort the employee to their desk to retrieve any personal belongings.

5. Do not Make Ending the Employment Relationship Personal

While not technically a legal requirement, a termination meeting helps avoid any appearance of wrongdoing. The legal termination of employees should include an exit interview. However, keep it brief.

At-will termination should not involve personal attacks on the employee. Simply provide a record of the act, evidence of why it occurred, and brief responses to any questions they have.

6. Provide Essential Information on Unemployment Benefits

After termination of employment, the employee may struggle with financial security. While they will receive their final pay at the meeting, they may seek compensation from unemployment insurance or other forms of temporary financial assistance.

Ensure the employee understands the eligibility requirements to receive unemployment benefits. The following conditions could prevent them from effectively seeking compensation after termination:

• Voluntary termination
• Gross misconduct
• Termination before a year of employment
• Insufficient earnings
• Receiving disability pay

Where applicable, you should also discuss the employee’s severance package. Termination of employment does not always prevent the employee from collecting this benefit.

7. Inform the Remaining Staff

Employment terminations never happen in a vacuum. The dismissal will affect team members and possibly leave a vacancy for which they must compensate.

Ideally, the firing will not come as a surprise to the team, and they have time to prepare. Still, communicate the following:

• Help the staff understand the reason for the dismissal and the effective termination date if it is not immediate.
• Brainstorm ways to navigate the transition without significantly increasing their workload or harming productivity.
• Take time to answer any questions or concerns they have.
• When possible, confirm other staff are not at risk of losing employment.

Schedule a Consultation With Anthony Law Group Regarding Lawful Business Practices

At Anthony Law Group, we help small businesses with the legal termination of employees, so they understand the legal requirements. From navigating employee misconduct to advising about legal requirements for the process, we advocate on the employer’s behalf. Whether you have questions about final pay or post-termination health benefits, we can help.

Schedule a consultation by calling (602)-362-2396.