Employee Termination Process And The Legal Department S Role

Bonisiwe Shabane

-Oct 29, 2025, 7:32 AM

employee termination process and the legal department s role

The ACC Member Portal and all website services will be intermittently unavailable from Monday, 27 October 2025 at 4:00 PM GMT / 12:00 PM ET through Wednesday, 29 October 2025 at 10:00 PM GMT... We apologize for any inconvenience this may cause and appreciate your patience as we work to deliver an improved user experience. Thank you for your patience! Please contact our team with any questions. This Wisdom of the Crowd, compiled from responses posted on the Health Law and Employment & Labor eGroups,* addresses the process of terminating an employee and the legal department's role in that process. The issues discussed include:

I. Company Checklist for Terminating an Employee II. When/How Legal Department Is Involved in Terminations III. Legal Department Checklist *(Permission was received from the ACC members quoted below prior to publishing their eGroup comments in this Wisdom of the Crowd resource.) Terminating an employee is one of the most challenging tasks human resources (HR) professionals face.

Whether it stems from performance issues, policy violations or organizational restructuring, a well-executed employee termination process is critical for protecting both the company and the employee involved. Missteps can lead to legal consequences, damage morale and tarnish a company's reputation. This guide outlines the key components of a compliant and ethical termination process — and how HR professionals can confidently manage each step. A structured employee termination process ensures consistency, legal compliance and fairness. It helps protect organizations from wrongful termination claims and demonstrates that the company made a good-faith effort to address issues before ending employment. A strong process also provides clarity to employees, reducing confusion and conflict.

Unlock new opportunities and expand your skills with an education designed for your future. Get started today! To ensure a smooth, compliant and respectful transition, HR professionals must follow a structured approach. Below are the essential steps to guide an effective employee termination process from start to finish. As a SHRM Member®, you’ll pave the path of your success with invaluable resources, world-class educational opportunities and premier events. Demonstrate your ability to apply HR principles to real-life situations.

Stand out from among your HR peers with the skills obtained from a SHRM Seminar. Demonstrate targeted competence and enhance your HR credibility. Designed and delivered by HR experts to empower you with the knowledge and tools you need to drive lasting change in the workplace. 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. Employee terminations are an often icky (but let's face it: inevitable) part of the HR role. Whether due to performance issues, restructuring, or other reasons, these decisions are challenging for both the departing employee and the HR professional managing the process. When it comes to navigating these delicate conversations, it's critical to prioritize respect and privacy to uphold the dignity of the departing employee, while also safeguarding your company's reputation.

In this guide, we'll explore how to pressure test the decision to terminate an employee, and provide a step-by-step checklist you can refer back to any time you need it. When exploring whether or not you should part ways with an employee, both you and the employee's manager/supervisor must work together to ensure fairness and the best interests of all parties involved. So if you're thinking about terminating an employee but haven't made the decision just yet, consider the following: Employee termination is a challenging (and sometimes exhausting) aspect of HR that requires careful planning, communication, and empathy. While termination can be a necessary step in addressing certain issues, it's important to conduct the process with respect, fairness, and professionalism. Retaining top talent continues to be one of the greatest challenges facing employers today.

Even in an employer’s market, the loss of a key employee can disrupt operations and result in significant costs. While compensation plays a role, long-term retention often depends on workplace culture, communication, and employee engagement. One increasingly popular strategy for improving […] Secured transactions form the backbone of a wide range of business dealings, including business loans, mortgages, and inventory financing. Because the stakes are often high and relatively minor oversights can have drastic consequences, lenders and borrowers should thoroughly understand how to form an enforceable security agreement that protects their legal rights. What Is a Secured […]

Cashing a check marked “paid in full” can be a risky endeavor, particularly if you don’t fully understanding the legal implications. If you are owed more than the amount of the check you accept and deposit, you may waive your right to collect the full disputed amount. That is why you should consider either rejecting […] The One Big Beautiful Bill Act of 2025 (OBBBA) significantly impacts federal taxes, credits, and deductions. A key change relating to Qualified Small Business Stock (QSBS) allows greater tax-free gains for investments in startups and other qualifying small businesses. Company founders and other investors should understand how the enhanced tax strategy works or risk missing […]

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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. Termination or firing employees is an unpopular but mandatory process. All businesses, big or small may, at some time, fire an employee because of business compulsions. However, the recent downturn has accelerated employee terminations largely due to financial and performance problems. While the decision to fire an employee is never welcome, there are some acceptable reasons: Above reasons are accepted by employees, the business community and the legal framework of the country and states as necessary for business growth.

Unfortunately, there are incidents of “unethical and unacceptable” terminations. It is unethical and legally unacceptable to terminate an employee on the basis of: Alison Roller is passionate about engaging and informative storytelling through writing and social media. She has been writing since 2018 on a range of topics: politics, higher education, leadership, workplace culture, and diversity, equity, & inclusion. She holds a Master's of Communication with a focus on journalism from Syracuse University's Newhouse School. When she’s not working, you can find her hanging out with her cat, knitting, and scrolling TikTok.

Making the decision to terminate an individual’s employment is never easy. Having a checklist to keep track of all the steps in the termination process can help you stay organized and ensure that nothing is missed in the process. And it can also help free up time for HR to focus on the next steps for the business and the employee. Here’s a step-by-step employee termination checklist to ensure that the termination process goes as smoothly as possible. Before doing anything else, the first step should be ensuring that you comply with company policies as well as federal and state laws.

Employee Termination Process And The Legal Department S Role

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