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:
While firing people on TV seems to be fairly easy, terminating somebody for real can be one of the most difficult things a manager has to do. Firing an employee is never easy but a few simple things can make it go more smoothly while at the same time help to shield your organization from potential legal action.
There are at least two very critical overriding issues in a termination:
The termination process should include:
According to a study by the Ponemon Institute, a privacy management company, entitled Data Loss Risks During Downsizing: As Employees Exit So Does Corporate Data, 59% of voluntarily and involuntarily terminating employees took sensitive information as they left their organizations. Disgruntled employees were 2 ½ times more likely to leave with important company data. The vast majority of ex-employees indicated that they took information to help with a new job. Sixty-five percent took email lists, 45% non-financial business information, and 40% customer information and contact lists. Hard copy documents were the most likely to be taken followed by information on CDs/DVDs and on memory sticks. Eighty percent of individuals surveyed indicated that they knew that taking such data was prohibited, but they did it anyway. Interestingly, over one third of respondents reported that they could continue to access company computers for at least a week after leaving.
The U.S. Sixth Circuit Court of Appeals has found that terminated female plaintiffs, who claimed discrimination drove decisions in a reduction in force, failed to provide supporting evidence to make their case. The pro-employer decision came despite the fact that females comprised 53% of the workforce but 92% of those terminated. Why you ask?
The American Recovery and Reinvestment Act of 2009, signed on February 17th, (the massive federal“stimulus” legislation) includes an important provision that affects most employers and requires immediate attention. The new law will provide for a 65% monthly COBRA premium subsidy for most employees who were involuntarily terminated between September 1, 2008 and December 31, 2009. While the intent of the law is to assist employees who were terminated in reductions in force, it appears that nearly all involuntarily terminated employees and their dependents (qualified “assistance eligible individuals”) may qualify for the subsidy. The subsidy may extend up to 9 months and applies to medical, vision and dental benefits. It applies to nearly all employers with group health plans, regardless of whether they are subject to COBRA’s continuation rules. That includes private and government employers subject to COBRA and some smaller employers that may be subject to state “mini-COBRA” laws. “Assistance eligible individuals” are qualified for subsidy payments effective at the first period of coverage, beginning on or after the bill was signed into law (February 17th). Practically, for most employers, that date is March 1st .
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