Termination Toolkit | AccountingWEB

Termination Toolkit

You don’t want to fire an employee, especially in this tight labor market, but sometimes you have to do it. Lots of things may cross your mind including a possible law suit or revenge by the employee. The best way to protect yourself and your firm is to document all of your actions and provide a forum for the employee to “have the last word,” so to speak. If you can show that you fired an employee for proper business reasons and that you acted in good faith during the termination process, you’ll stand a better chance in court.

Employment-At-Will laws exist in all states except Montana. Under these laws, theoretically you have the “right” to discharge an employee at any time for any reason – or even for no reason at all. The reality of the situation is that firing is becoming more restricted because of new federal and state laws that favor employees.

Don’t let litigation stand in between you and your firm’s best interests, though. You have every right to rid yourself of a troublesome employee. Just do your homework so you won’t have to do it later. An important part of your preparation is a termination meeting script and an exit interview form. Prepare your comments for the meeting and stick with the exit interview to allow the employee to air his/her concerns.

The best way to "win" a lawsuit is to avoid it in the first place. Be assured that you do have rights under current laws. Learn more about the pitfalls and legal implications of firing.

Wait, there's more!
There's always more at AccountingWEB. We're an active community of financial professionals and journalists who strive to bring you valuable content every day. If you'd like, let us know your interests and we'll send you a few articles every week either in taxation, practice excellence, or just our most popular stories from that week. It's free to sign up and to be a part of our community.
Premium content is currently locked

Editor's Choice

WHAT KIND OF FIRM ARE YOU?
As part of our continued effort to provide valuable resources and insight to our subscribers, we're conducting this brief survey to learn more about your personal experiences in the accounting profession. We will be giving away five $50 Amazon gift cards, and a $250 Amazon gift card to one lucky participant.
This is strictly for internal use and data will not be sold
or shared with any third parties.