Part 2
As mentioned in yesterday’s Silkin Management Group blog which you can link to here: http://blog.silkinmanagementgroup.com/?p=238, dealing with problem employees is a major area of uncertainty and lack of training with many business owners and many of Silkin Management Group clients before they start working with us. Lack of knowledge in this area is very dangerous and can lead to incorrect actions taken with employees resulting in unnecessary liabilities which eat up time and money and can cause a great deal of stress.
We’ve presented and will continue to present relevant articles that we find concerning the various legal issues on dealing with employees. We have primarily used articles from The Law Offices of Timothy Bowles, P.C., a firm that we and many of our clients have used over the years for Human Resource issues. Today we present a follow up article from this firm on a method of protecting yourself when dismissing a “bad apple”.
Larry Silver
President, Silkin Management Group
For more information about Silkin Management Group, visit our website at www.silkinmanagementgroup.com. You can also contact Silkin Management Group at info@silkinmanagementgroup.com.
How to Fire a Troublesome Worker without Getting Burned
Susan is the supervisor for “Tony the Trouble-Maker.” Although Tony used to be the top producer in the division, lately he has been rude to Susan, fights with his coworkers, and refuses to take responsibility when something goes wrong under his watch. Susan is struggling to keep her unit in the black and this guy is weighing down the whole area. She is now ready to terminate Tony’s employment. However, Susan seems to recall Tony once boasted about how he successfully sued his former employer for “tons of dough.” Susan is concerned if she terminates Tony, he will file a lawsuit for wrongful termination, and Susan doesn’t exactly relish the unnecessary cost or distraction. How can Susan reduce the likelihood of post-employment litigation?
Susan should offer Tony an additional severance pay amount in exchange for a signed release and waiver. In theory, this is a simple transaction. Tony will receive additional money beyond his final wages so long as he signs a document in which he agrees not to sue the company for claims including wrongful termination, discrimination, harassment, retaliation, or breach of contract.
However, there are several pitfalls to this arrangement of which Susan must be aware in order to ensure the applicable state agency (such as the California Department of Fair Employment and Housing) or federal agency (Equal Employment Opportunity Commission) will honor such a waiver. For example, if Susan’s company has at least twenty employees and Tony is age 40 or over, Susan must notify Tony that (1) he has up to 21 days to consider and sign the waiver after which time the company will withdraw the severance pay offer; and (2) he has another seven days to change his mind and rescind the agreement.
Handled correctly, we have found the great majority of departing workers will agree to such a severance package. Indeed, most don’t bother waiting for any part of the 21 day offer period to expire, instead signing and taking the severance check upon receiving and promptly reviewing the papers.
Our severance pay forms package includes a five-page overview of exact steps to take, two separate types of severance agreements and two corresponding checklists for the departing employee to initial and sign. By ensuring all these forms are properly understood and implemented, a company can take effective steps to prevent frivolous wrongful termination suits where the company judges it best to promote a worker’s smooth transition to other employment.
If you have any questions, please contact me or any of our other employment law attorneys.
Cindy Bamforth
Law Offices of Timothy Bowles, P.C.
One South Fair Oaks Ave., Suite 301
Pasadena, CA 91105
626-583-6600
email: information@bowleslaw.com