Terminating employees is one of the toughest parts of any business owner, HR manager or supervisor’s job. No matter how proficient you become at handling the business of firing employees, it is still a difficult task to complete.
An even more difficult task in the process of terminating employees is knowing the legalities behind firing people. The most important of these legalities includes legal restrictions that might keep you from firing an employee.
Consider whether your employee falls under any of these categories before you determine whether they can be terminated:
Contract Employees – Of course contract employees can be terminated, but it is a bit trickier to fire a contract employee, unless the action you feel warrants dismissal is specifically stated in the guidelines of the contract.
Union Employees – More often than not, union employee contracts are fairly binding and will require negotiation between the union officials and the company in order to terminate an employee. The reasons for being able to terminate a union employee should be listed on their contract.
Company Restrictions and Regulations – Your employee manual can be considered a legally binding document, especially if you have employees sign that they have received and understand the company policies. With this in mind, it is possible for employees to claim the reason you fired them is not listed in the employee manual. Be sure to list all possible reasons an employee might be terminated before handing out manuals to employees.
Labor Laws – These laws are set in place to protect employees that may otherwise be fired because of age, race, religion, ethnicity, or sex. Of course, firing an employee that is breaking company policies is legal even if they fall under one of these categories, but firing an employee just because they fall under one of these categories is against the law. If you will be firing an employee that might be able to claim discrimination under labor laws, be sure to have your evidence in check.
Whistleblower Employees – If you have an employee that has stepped up and blown the whistle on the company for breaking health codes, sexual harassments laws, or any other codes that might be in play for the company, firing them is out of the question. This is unless they are trying to slander the company. If their whistleblowing is warranted, they cannot be fired under state and federal law.
Understanding the legal restrictions regarding termination is essential to keeping your business running smoothly! For more information on Federal law pertaining to firing employees, visit the United States Department of Labor or Canadian Labor Code.
I hope this information helps in making those difficult decisions.