Managing Legal Risk in Employee Terminations

Most of the risk in a termination is created not at the moment the decision is made, but in how the process is documented and carried out. For the employer, the central issue is establishing the basis for the decision properly from the start and running the process consistently.

Assessment before the decision

Before a termination decision is taken, the underlying facts need to be set out concretely. Minutes, correspondence and performance records should support the reasoning behind the decision. Documents created after the fact weaken the position in any defence.

Documenting the process

Verbal warnings and informal conversations can be insufficient as evidence if a dispute arises. Written notification, taking a statement and keeping proper minutes make the process transparent.

Documentation is not only for defence. It also ensures that communication with the employee is handled openly and that the process remains predictable.

Communication and managing the process

How the termination meeting will be run, who will attend and what information will be shared should be planned in advance. In meetings with a high emotional charge, statements made can later be interpreted differently.

Preparing for a possible dispute

The employer should run the process from the outset with the possibility of a dispute in mind. Keeping the file in order provides a significant advantage, both in mediation and at the judicial stage.

Frequently Asked Questions