Best Practices For Terminating Employees Rdm Lawyers

A termination is simply the ending of an employment relationship and is more commonly referred to as “firing” or “laying off”. This article focuses on the technical procedures associated with termination, rather than the obligations related to severance. (To learn more about wrongful dismissal and reasonable notice, please refer to an earlier article here.) No one enjoys terminating an employee, especially when there are no concerns or serious allegations. Often an employee will have no idea that termination is coming and maybe upset or in shock. It is best to meet with the employee in person.

The meeting should be held privately, which might mean off-site, in a separate office or in a boardroom. It is generally advisable to have two managerial-level employees present. While there is no one best time to undertake a termination, if it is done at the end of the workday, the employee can clear out his or her belongings without having to worry... You may also want to consider allowing the employee to return after hours to complete this task or – depending on the situation and company policy – it may be more suitable to have... If an employee needs to return company property, you should also consider giving him or her the option of doing so outside of operating hours. It is important to ensure the employee is treated with dignity and respect or it could result in additional damages awarded if the termination ends up in court.

For more information about potential damages see our blog post linked to here. Here are some best practices for handling employee terminations: Before terminating an employee, it is crucial to have a paper trail that outlines the reasons for the termination. Document any performance issues, disciplinary actions, or warnings given to the employee. This documentation will serve as evidence if the termination is ever challenged legally. Having proper documentation is essential in any termination process.

It helps ensure that the decision is fair and justifiable, reducing the risk of potential legal disputes. Whether it’s poor performance, violation of company policies, or misconduct, be sure to thoroughly document each issue and the actions taken to address them. Include specific dates, times, and details of incidents or discussions with the employee. This will provide a clear timeline of events and support your decision to terminate if needed. Remember to maintain confidentiality when documenting sensitive information, keeping it secure and accessible only to authorized personnel. Adhering to company policies and applicable employment laws is crucial when terminating an employee.

Familiarize yourself with the local labor and employment laws and regulations to ensure that the termination process is carried out in compliance with legal requirements. Review your company’s policies and procedures regarding terminations to ensure consistency and fairness in handling employment terminations. Be mindful of any contractual obligations, such as notice periods or severance packages, and ensure they are properly followed. How To Minimize Risk When Terminating Employees Firing an employee is never fun. It’s emotional, stressful, and, if done poorly, can open the door to lawsuits or government investigations.

Still, terminations are an inevitable part of running a business. The key is knowing how to handle them in a way that is both humane and legally sound. In most of the US, the default employment relationship is ‘at-will.’ That means employers can terminate an employee for any lawful reason, or no reason at all, without notice. But as Amit Bindra of the Prinz Law Firm explains, that promise of simplicity often comes with strings attached: “At-will employment is not a blank check. Anti-discrimination laws, retaliation protections, and public policy exceptions all limit when and how you can actually terminate someone.”

Bindra’s point reflects the reality that ‘lawful reason’ has a narrower meaning than many employers assume. Decisions based even partly on protected characteristics, such as age, disability, or race, can invite costly discrimination claims. Retaliation claims, meanwhile, are among the most common issues employers face. Effective July 1, 2025, additional protections are available for workers when employers use immigration-related threats to discourage or retaliate against the usage of certain workplace rights. While Washington is an at-will employment state, employers cannot fire or retaliate against an employee who exercises a protected right or files a complaint under certain employment laws. State law gives employees protection in the following areas:

Depending on the situation, L&I will investigate your complaint or refer you to the appropriate agency. You may have additional rights against termination or retaliation under a collective bargaining agreement, in your employer’s policies, or under federal law. However, L&I does not have enforcement authority in these areas. At-will employment means that employers do not need to establish cause or give notice before firing an employee. That being said, it is against the law for an employer to fire or retaliate against an employee for discussing or filing a complaint about a violation of their protected rights. In a perfect world, employees perform optimally, enjoy high job satisfaction, and stay with one company until retirement.

This type of perfection rarely exists. According to the U.S. Bureau of Labor Statistics, the median employee tenure with a single company is 3.9 years. While some staff members resign voluntarily, others are involuntarily terminated. Improper or illegal terminations expose companies to consequential legal issues and financial risk. Employers must attempt to close all possible doors to post-termination litigation to avoid lengthy and expensive legal battles, adverse publicity, and any detrimental impact on employee morale.

Make sure your employees understand their job responsibilities, the company’s policies and code of conduct, any performance issues, and ways to improve their performance. That said, the most important way to avoid litigation is by adhering to all applicable federal, state, and local laws concerning employment. Never fire an employee for an improper or illegal reason. Doing so leads to accusations of discrimination, retaliation, or breach of contract. Emotions run high following an involuntary discharge and some ex-employees are just looking for a fight. While nothing can totally bar former workers from pursuing legal action, employers can take steps to take the wind out of these individuals’ litigious sails.

Get a free trial of Practical Law, the how-to resource with termination best practices, protocols and practical tips for employers on legal risks. The best way to escape a lawsuit it to avoid its inception. Implementing and following proper termination practices minimizes the risk of encountering a wrongful termination claim. Before initiating a dismissal process, employers must understand all applicable federal and state employee termination laws and policy requirements. To protect confidentiality, only include critical individuals in discussions. An experienced team of legal writers and editors researches, drafts, edits, and updates the articles in the Understand Your Issue section of Lawyers.com.

Each contributor has either a law degree or independently established legal credentials. Learn more about us. No one likes the idea of firing an employee. Unfortunately, it's unavoidable for most business owners and managers. Terminating an employee is an inherently difficult situation that exposes the company to legal liability if not handled property. Following best practices throughout the termination process will help you avoid legal trouble and make the process less stressful for all involved.

Before meeting with the employee, make sure you understand the nature of the employment relationship. Is there an employment contract that says that employees can be fired only for a good reason? Or is this at-will employment that can be ended at any time without cause? If there’s an employment contract, it will usually spell out the reasons an employee can be fired, such as tardiness, unexcused absences, or misconduct. Employers should be careful not to make statements that could create implied employment contracts with employees. For example, a boss who tells a top employee, “We’ll always have a place for you here,” might be inadvertently creating an oral contract of employment.

Firing an employee is one of the most challenging tasks for any employer, carrying legal, financial, and interpersonal implications. In Washington, as in many other states, there are specific laws and regulations governing the termination process that both employers and employees need to understand. From reasons for termination to documentation requirements, navigating these guidelines is crucial to ensure a fair and lawful dismissal. Read on as we cover the essential aspects of firing employees, for Washington-based employers. Firing or terminating an employee is basically the process of an employer permanently ending an employee’s contract of employment with their company. This decision can be driven by various factors including, but not limited to, performance issues, misconduct, redundancy, or business closure.

In the context of employment terminations, it’s crucial for employers, especially those in Washington, to carefully understand the differences between firing, layoffs, and resignations. Each scenario has distinct implications for both the employee and employer, and handling them appropriately is essential to maintain a fair workplace and comply with legal standards. Firing, or dismissal, is an employer-initiated termination of an employee’s contract due to performance issues, misconduct, or breach of company policy. In Washington, employment is generally considered “at will”, meaning employers can fire employees for any reason not prohibited by law (such as discrimination or retaliation). However, employers must still follow any policies they have established regarding disciplinary actions or termination procedures. Documentation is critical in these instances to protect the business from potential legal challenges, ensuring that the reasons for firing are clear, well-documented, and communicated to the employee.

Layoffs occur when employees are let go due to business reasons unrelated to their performance or behavior, such as economic downturns, business restructuring, or the elimination of their positions. Unlike firings, layoffs are not a reflection of the employee’s job overall performance. Washington employers contemplating layoffs must be mindful of the WARN Act, which requires most businesses with 100 or more employees to provide 60 days’ notice of significant plant closings or mass layoffs. Employers should also consider the impact on the remaining workforce and may offer severance packages or outplacement services to support affected employees.

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