Up next in How to Hire & Fire (9 videos)
If you manage employees, you'll want to check out the hiring and firing advice in this Howcast video series.
You Will Need
- Knowledge of employment law
- Severance paperwork
Make sure it's legal
There are various legal complexities surrounding a layoff. Consult an attorney to make sure you're following local regulations.
Prepare the necessary paperwork, including a severance package, a final paycheck, information on continuing their health insurance, and so on.
Explain the termination
Explain why the employee is being laid off. Research has found that employees who are not given a good explanation are more likely to sue their former employers.
Treat everyone equally
Base any severance package on company policy, not personal feelings. If one employee finds out that a comparable worker got a better deal, they might have grounds for a lawsuit.
Consider a waiver
If you offer a severance package, you can condition it on the employee signing a waiver that says they will not sue you. But keep in mind that, under federal law, certain workers have up to 45 days to rescind their agreement.
If you are laying off a good employee, offer to write a recommendation for them.
Be civil. Judge if it's necessary to escort the employee out of the building immediately, or if they can be trusted to take time to gather their belongings and say their goodbyes.