There's nothing like a termination to get the "l'm-going-to-sue!" juices flowing. People want someone to blame, and, guess what? It's not going to be them.
Ill-considered and hasty terminations spell lawsuit time after time. And most of those lawsuits are avoidable-if you know what to do.
Yes, you may win the lawsuit. But, unfortunately, once you get sued, you're a loser, whether or not you "win." With attorney, court and other costs, it is still an expensive, time-consuming, productivity-sapping task.
Keys to Preventing Termination-Related Lawsuits
1. Delay action until HR can evaluate.
Have your managers get you, the HR expert, in the game before any damage is done. Impulsive firings, done in the heat of the moment, attract suits like honey attracts flies.
HR knows how similar situations have been handled in the past, what legal challenges may be involved, and whether there might be extenuating circumstances. So have managers delay a decision, even if it means suspending the employee and cutting off their access to corporate systems, while further steps are considered.
2. Do an evaluation of key factors.
There are a number of factors that might effect a decision to terminate. Have managers ask themselves:
- Is termination the appropriate punishment, in light of current policy and past practice?
- Would a jury consider termination fair and commensurate with the offense?
- Has this employee filed complaints, charges, or lawsuits? (For example, a complaint over discrimination or a question about safety, pay issues, or financial shenanigans? If so, juries may see your action as retaliation for a protected act.)
- Could this action be viewed as discrimination? (Is the person a member of a protected class?)
- Is there any contract, written or implied, that must be honored? Go back over your offer letter, for example, and see if there's any, "and we expect to have you with us for many years," verbiage.
3. Establish agreement.
Is there clear agreement among senior management, line manager, and HR as to why this termination must take place? And has this reason remained consistent over time? (Often the reasons top management gives in court are not the reasons given by the line manager at the time of termination-a difficult-to-explain situation, to say the least!)
4. Examine documents.
Is there clear and adequate documentation to back up the termination decision? Are there witnesses? (Time and again, experts report, companies assume that there's paperwork to back up their decisions, but then, once they decide to go to court, somehow they can't find the papers.)
5. Treat the person with dignity.
Many terminations are turned into lawsuits when the terminated employee is treated poorly-for example, conducting an angry firing in public, or refusing to listen to the person's side of the story.
5 Steps to Avoid Termination-Based Lawsuits
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