Risk & Business Magazine Sterling Insurance Fall 2017 | Page 3

OFFSETTING LIABILITY
BY: JOE HANEY
STERLING INSURANCE
Discipline And Termination:
Offsetting Liability
O
ne aspect of business
ownership and management
which is an unfortunate
necessity discipline and
termination. Sometimes,
things happen at work which require the
disciplining of an employee. That discipline
can sometimes lead to employees being
terminated from the business entirely. From
a human resources (HR) perspective, it can
seem favorable at times to rush through
the process of terminating an employee
to get it over with as quickly as possible.
Rushing things in this situation is a mistake.
Instead, termination processes should be
in place ahead of time, just like onboarding
processes.
According to statistics from the Equal
Employment Opportunity Commission
(EEOC), more than $525 million was
secured for victims of terminations
stemming from employment discrimination
in 2015. Additionally, over half of wrongful
termination lawsuits are won by former
employees. With statistics like that, and
how expensive penalties and lawsuits could
potentially be for your business, it is clearly
important to have a plan in place and offset
some of that potential liability. With a
clear termination process, you ensure that
employees part with you on good terms
and that your company is protected from
liabilities in the future.
Consider including the following in each
employee personnel file in order to further
protect your business:
• Employee handbook
acknowledgement, signed by the
employee
• A progressive discipline policy which
outlines clear steps in the process
• Documentation of performance,
including performance failures. This
is essential if you are terminating
employees due to past performance
issues.
• Documentation of all warnings or
suspensions the employee has received
• Statements regarding infractions
(reported by managers or coworkers)
• Attendance records
• Termination letter confirming details
of the termination and what the
employee needs to know
• Employment dates
• Formal performance reviews
• Workplace posters; not necessarily
in the file, but around the workplace.
These will explain unemployment
benefits and compliance information.
Above all, when terminating an employee,
using tact is essential. The employee should
already be aware that there is an issue and
usually should have already been given
ample opportunity to improve. If that has
not succeeded, preparation should begin
for the termination, including review of
personnel files and associated policies.
Communicate with HR and IT to find
out what needs to be done regarding
work-related devices and access. Meet the
employee in person in a private location
and keep it short. Be honest, communicate
about benefits, and treat the employee with
respect. Finally, consider having security on
hand just in case things go badly.
Having a plan in place for terminating
employees and being strict about company
policies and documentation is essential to
success in offsetting potential liabilities.
For help reviewing your current discipline
and termination policies (or developing
new ones), contact us. +
Joe Haney is the President and Founder of
Sterling Insurance Group. Celebrating 21
years of business ownership and growth,
Joe believes in continuous improvement as
evidenced by his earned designations as a
Certified Risk Advisor, Certified Benefit
Wellness Advisor and Certified Authority
on Workers Compensation. Joe works
with a variety of clients in both Risk
Management and Employee Benefits. Joe is
involved in several industry-related groups
and philanthropic organizations as well.
Contact him at jhaney@sterlingagency.
com or [phone].
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