Why do some employees sue after being fired? It’s not just luck. Simple employer mistakes can lead to costly results. How an employee is treated at termination can determine whether or not he or she will sue. Focus on the “how” as much as the “what.”

But Managers can make other fundamental mistakes with appraisals as well, they include:

1. Shoot Now, Ask Questions Later.  Employees should not be fired “on the spot.” An investigation should occur even if an employee is “caught red handed.”
2. Failing To Count To Ten or One Hundred.  You’ll regret acting when you’re mad, fed up, or just can’t take it any more.
3. Surprise, Surprise, Surprise.  Don’t surprise the employee. Except in unusual and serious circumstances, an employee should have had some notice that her performance is unacceptable and also an opportunity to improve. Surprised employees sue.
4. Maybe I Will, Maybe I Won’t.  Have other employees been fired for similar offenses? An employee who thinks he was treated differently may seek to “get even.” Being inconsistent is high risk behavior.
5. Forgetting Your Inner Scout. Being well prepared, perhaps even preparing at least part of what you will say, will make things less stressful, make the meeting go more smoothly, and make it more likely that you won’t slip and say something you shouldn’t.  A little rehearsal wouldn’t hurt.
6. No Breadcrumbs.  Having little (or no) documentation makes it awfully hard to support your decisions. Are there records of oral or written warnings? Are past performance appraisals consistent with your actions? It’s really about fairness.
7. Motor Mouth and Long Goodbyes.  Terminations should be short and to the point. This isn’t the time to discuss problems. Be especially careful about what you say. Misinterpreted words are a real danger here. Remember that what you say can and will be used against you.
8. Channeling Perry Mason.  Don’t argue, prosecute, try to justify your decision, or attempt to win the case. The decision has been made and it’s final. Your job is to inform the employee of the termination not debate it.
9. Forgetting That Mom Was Right About Telling the Truth.  Do you have to give a reason for the firing?  Probably not.  But should you?  Yes, to give no reason, false justification, or a less painful reason (e.g., RIF) may create suspicions in the employee and certainly won’t look good should that employee file a case later on. Don’t provide lots of details but be honest.  (Refer to #5 “Inner Scout for practice tips.)
10. Treat Them Like Dirt.  Failing to treat the employee with dignity is not only unkind, it makes him mad. A humane, private, and professional termination may avoid a lawsuit down the road. Pick a discreet time and place.  Don’t humiliate him by forcing him to clean out his desk or remove personal effects in front of coworkers.
11. No Solo Flights.  Don’t do it alone. Have another manager present and have your actions reviewed by HR before you act.
12. Loose Lips Sink Ships.  Keep your mouth shut after the termination. Don’t discuss the reasons for the termination with other employees. Loose lips can lead to a defamation suit.