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Saying Goodbye Is Hard To Do

Employers devote significant time and resources to developing recruitment, screening and orientation policies. Few employers, however, devote a similar amount of time to their discipline and termination policies. Out of all human resource policies and practices, an employer’s discipline and termination policy entail the greatest potential employment liability. An employer can significantly its potential employment liability by developing and following a termination (or separation) policy, using a separation checklist and persuading employees to participate in exit interviews.

What to Include in a Separation Policy

A separation policy should be included in the employee handbook and should cover the following issues:

A. Amount of notice expected from employees and provided by the employer. The employer may want to notify the employees that they will receive additional notice in the event of mass layoffs or reductions in force (as required by law).

B. When the employer will issue the final paycheck to the employee. State law usually regulates the timeframe.

C. Whether the company will pay the employee for accrued but unused vacation. Some states require such payment; other states do not address the matter.

D. When existing benefits may terminate (such as health insurance or tuition reimbursement) and how the employee may continue health care coverage under the federal Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA).

E. Which, if any, obligations (such as confidentiality and noncompete agreements) continue after termination.

F. The employer’s policy regarding letters of reference. The policy should indicate who will handle all requests and what information will be provided to prospective employers.

G. The employer’s request that all employees complete an exit interview form and participate in an exit interview upon separation.

Why Exit Interviews Are Important

The exit interview is an important part of the termination policy because it may provide significant feedback to the employer regarding the workplace. From a defensive perspective, the exit interview is a way of getting the employee’s position in writing when it is fresh. While an employee can always change his or her story thereafter, the employee will have to explain any discrepancy with information on the exit interview form. 

This article does not constitute legal advice. If you have questions regarding any particular issue, consult an employment attorney or contact us at Human Resource Attorneys, 98 Larkdale East, Suite 100, Deerfield, IL 60015, tel. 847.444.0350, fax. 847.374.8599.

riskVue | The webzine for risk management professionals
June 2000