How to best handle the dismissal of employees
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Dismissal
is the involuntary termination of an employee’s employment. Because
emotions are often high, dismissals need to be handled with great care,
or avoided. How can managers avoid dismissals? Careful selection,
training, and management decisions serve to reduce the number of
dismissals. In any case, a dismissal should only be considered after
other options have been tried and did not lead to the desired results.
Except in cases of gross misconduct, the dismissal should not come
unexpected to the employee. Managers need to make sure that sufficient
opportunities for changes were provided and a fair disciplinary process
was followed. In addition, regular evaluation of an employee’s
performance and a paper trail regarding performance appraisals and
disciplinary actions is a must should a terminated employee challenge
the dismissal in court.
Michigan is an at-will employment state. What this means is that in the
absence of a contract, the employee can resign at any time and for any
reason and the employer can terminate for any reason or with no reason.
Two exceptions apply in Michigan: the public-policy exception and the
implied-contract exception. The public-policy exception prevents
employees from being terminated for an action supported by the State’s
constitution and statutes. For example, civil rights and equal
employment opportunity legislation prohibit discharge based on an
employee’s protected characteristics, including race, color, religion,
sex, national origin, age, and disability status. Other examples are the
reporting of dangerous workplace conditions, union activities, and the
refusal to break the law on the employer’s request.
The implied-contract exception is brought on by an employer’s oral or
written assurances with respect to job security or disciplinary
procedures. For example, an employee handbook describing procedures to
be followed if disciplinary action becomes necessary or statements to
the effect that no employee will be fired without just cause create an
implied contract. Then the employer needs to follow the described
procedures. Also, if a manager in charge of hiring, or the employee’s
supervisor tells him or her that the employment will continue for as
long as the work performed is adequate, an implied contract is created.
If an employee’s dismissal does not comply with the law or does not
comply with contractual agreements stated or implied in handbooks,
application forms, or other company documents, it is considered a
wrongful discharge. A wrongful discharge may be actionable in court.
Even if a plaintiff does not prevail, management time and attorney costs
are reasons to carefully review company policies before dismissal
decisions, in particular when the dismissal is without cause. As a
preventive measure employers need to review and regularly update their
employment documents, if they want to ensure an at-will employment
relationship with their employees. However, less job security may also
result in less loyalty from the employees.
Other important decisions in dismissal are how to conduct a termination interview and whether to offer severance pay.
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