Best practices for employee termination
In Practice
Faiza Wasif, MPH, is the AAD's practice management manager. Her column offers tips on an area she commonly receives questions about from members.
By Faiza Wasif, MPH, practice management manager, October 1, 2018
Terminating an employee can be one of the hardest things to do but at times is also very necessary to protect the best interest of your practice and its remaining employees. When planning for and/or carrying out a termination, follow these best practices:
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Be sure to have policies and procedures in place that outline violations, corrective actions, and processes for termination. Talk about all of these policies and procedures when you onboard new staff and do a yearly check-in to make sure they are aware of any updates. Having these in place in advance of a negative situation will protect you and your practice from facing any potential employment lawsuits.
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Monitor problem employees from the start. Typically, problems do not just come up; they begin early in employment. By having a formal appraisal process in place — at least annually — you have the opportunity to identify and potentially mitigate employee issues. In addition, you have formal documentation in place to point to should termination become necessary.
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Document, document, document. You do not have to wait until an official, annual appraisal to document employee issues. Regularly keep an honest, detailed record of employee performance close in time to the events so the specifics are fresh in your mind. Maintain an employee personnel file for these records.
- The personnel record is the central file of information concerning the employee’s record of employment with the organization. It is important to maintain confidentiality with these files. A policy should be put into place that limits access to information in the personnel record to the employee, management within reporting structure, and any physician owners.
- Encourage open communication between employees. If an employee feels a complaint is in order, the practice should have written procedures outlining the steps necessary for the employee to voice their concern.
- First, the employee should be encouraged to speak with their direct supervisor, and if their direct supervisor does not resolve the issue, then the employee should be encouraged to speak with the next level of supervision.
- However, employees should be counseled to go directly to the practice manager for any complaints regarding Equal Employment Opportunity issues, harassment policies, or if their issue is with their direct supervisor.
- If termination becomes necessary, take these steps first:
- Make sure all appropriate leadership is in agreement with the decision
- Consult legal counsel if necessary to minimize any risk of an employment lawsuit
- Confirm your documentation is accurate and complete
- Determine who will carry out the termination — preferably someone in a leadership position at the practice
- It is time to move forward with termination.
- Although not required, draft up a termination letter. This can help in communicating the termination in a well-written format that will minimize any wrongful termination claims. You can also document the reasoning and keep it in the employee’s personnel file.
- Be honest, respectful, and direct with the employee regarding the performance, conduct, and/or other substantiating claims.
- If the meeting becomes argumentative, it should be concluded immediately.
- Unless there is a fear of theft or destruction of company property, the employee should be allowed to privately gather personal items and leave the premises.
- Be sure to complete a termination checklist which may include the following helpful questions:
- Have all keys and/or other employer property been returned?
- Has the employee been given all information regarding final paycheck and the availability and limitations of insurance coverage and benefits coverage?
- Has the employee’s computer password been deactivated?
- Has the employee been removed from the roster, website, or any other materials?
- Has an exit interview been completed?
- Has notice been sent to applicable staff?
Termination of an employee is never easy, but following these steps can make it a little easier to ensure you are handling the situation in the best manner possible. To learn more about employee policies and procedures and access numerous helpful forms, be sure to purchase the AAD Dermatology Employment Manual.
