Handling Employee Terminations

This playbook outlines the steps for managing employee terminations and layoffs while remaining compliant with employment laws, especially the Worker Adjustment and Retraining Notification (WARN) Act, and maintaining an ethical approach throughout the process.

Step 1: Preparation

Review the company’s policies, employee contracts, and federal, state, and local laws to ensure compliance with all regulations, including the WARN Act requirements for notice periods. Prepare documentation, such as the reason for termination, performance records, and any severance package details.

Step 2: Notification

Notify affected employees in a manner that is respectful and transparent. This may include individual meetings and a written notice explaining the decision, effective date, severance details, and transition services offered.

Step 3: Communication

Prepare to communicate the news to the rest of the staff in a way that respects the privacy of the terminated employees and seeks to minimize the impact on morale.

Step 4: Admin Process

Execute administrative tasks including revoking access to company systems, retrieving company property, and finalizing payroll and benefits according to the terms of severance, if applicable.

Step 5: Transition Support

Offer support for transition, such as outplacement services, recommendations, and assistance with the job search process, especially if the layoffs are due to company circumstances and not individual performance.

Step 6: Post-Termination

Ensure a smooth handover of the terminated employee's responsibilities and adjust the workload among the remaining team members to maintain productivity.

General Notes

Legal Review

It is imperative to consult with legal counsel to verify all steps adhere to employment laws and to avoid litigation risk.

Emotional Intelligence

Consider the emotional impact of terminations and layoffs on both the departing employees and those who remain, and act with empathy and respect.

Confidentiality

Maintain confidentiality throughout the process to protect the privacy and dignity of the affected employees.