1. Termination
by Altagracia Del Valle
In this PowerPoint I will go over Termination:
Legal Termination
Impact of termination on staffing and HR
Research of termination process
Impacts over the organization
Conclusion

2. Definition
 Termination for
cause “refers to the
expiration of a
contract when one
side failed to act up
to the terms of the
contract, and the
other side is ending
the relationship as a
result.”
(uslegal.com n.d)

3. Impact on HR and Staffing
 There are many factors that
go into termination.
 Managers need to establish
communication with HR
before ever getting to the
point of termination.
 HR will be able to guide
them through the process
and make it a smooth
process and provide the
employee some dignity while
going through the process.
 HR will be able to help create
a paper trail so that the
company can avoid any
possible future damage.


4. Impact on HR and Staffing
Continued…
 HR can also help the firing manager
become aware of any possible laws that
they need to take into consideration
and employees rights.

5. Legal Termination
What the manager needs to know before termination of an
employee.
 At-Will Employment: “means that an employer can terminate
an employee at any for any reason, except an illegal one, or
for no reason with out incurring legal liability,” and vice versa
for employee. (NCSL n.d)
 COBRA: Employee can receive temporary medical coverage for
them and their family for a period of 18 months at group rate.
 HIPAA: provides protection for employees covered in a group
plan, also includes protection to group health coverage with
 Pre-existing conditions, and standards of privacy of
health information

6. Legal Termination Continued…
Retirement Plans: Employee Retirement Income Security
Act of 1974 (ERISA) sets standards for most employer and
union retirement plans.
Unemployment Insurance: provides to eligible employee
temporary, partial income to those who lost their jobs to no
fault of their own.
 Final Check: Texas Payday law states “the timing of the
final paycheck is section 61.014. If an employee is laid off,
discharged, fired, or otherwise involuntary separated from
employment, the final pay is due within 6 calendar days of
discharge.” (TWC n.d)

7. Legal Termination Continued
When it is illegal to fire:
 Discrimination: based off of race, gender,
age, religion or disability
 Whistle blowing: reporting on illegal
activities
 Time off benefits protected by the federal
government which include family, medical
leave, military leave, jury duty and time
off for voting

8. Termination Process
When the time comes to have to terminate an employee it is
important to have a termination process. It will help to stay
organized and make sure nothing is left out.
Having a checklist will also keep the process professional.
The TWC suggests a 10 step checklist.
√ Were “incidents close in time to discharge”?
√ Prove that “employee violated known policy or law”?
√ Are witnesses available?
√ Is there document “on file to support termination”?
√ “Did the employee go through the whole discipline
system?”

9. Termination Process Continued…
√ Has the employee been confronted about the problem?
Was the employee allowed to explain?
√ Has the prevention of discrimination laws been
reviewed?:
 Race, gender, religion, age, disability
√ Whistle Blowing and federal protected time off laws been
reviewed?:
 Time off such as: family, medical leave, military leave, voting and jury
duty.
√ In the case of “simple layoff” was it “neutral business
related criteria” that led to layoff and not discriminatory
factors that led to selection?
√ “Depending on how the questions are answered the
company may need to seek legal advice” before the
termination can proceed.

10. Termination Process Continued…
Other aspects that are not on the
termination checklist but need to be followed
in conjunction with the termination process
checklist.
 Beesley suggest that employee termination
should happen early in the week and early in the
day.
 Make sure there is another person such as a
supervisor when the termination is done. This
will prevent any he said she said in a possible
lawsuit.

11. Termination Process Continued…
 If you suspect that the employee will have an
emotional break down its best to do the
termination when the least amount of people
is around.
 Explain the situation so to give the employee
closure.
 Be clear and concise and explain any benefits
the employee may qualify for such as,
unemployment insurance, health insurance
coverage and vested retirement plan.

12. Impacts on the Overall
Organization
Employee termination has a negative impact
on the company in many areas.
Employee
 Employee being fired and
their family.
Co-workers:
 Have to pick up the slack
until the position is filled.
 Creates resentment among the other
workers.

13. Impact on Overall Organization
Continued…
Company:
 Having to pay overtime wages
 Advertisement and training cost.
 Beesley states, it cost the
company an estimate of
 “50-60% of that person’s
annual salary to refill that
position”.
 Possible legal fees

14. Conclusion
With termination having many negative
impacts on the company it is best to make
sure you are organized, have well
documented reports, have a checklist to
follow, know rights and laws of employees
and give the terminating party respect and
allow them their dignity
while going through the
process.

15. References
References
1. Beesley, C. (2012, February 2). How to fire an employee and stay within the law.
Retrieved April 23, 2015, from https://www.sba.gov/blogs/how-fire-employee-and-stay-
within-law
2. Final Pay. (n.d.). Retrieved April 23, 2015, from
http://www.twc.state.tx.us/news/efte/final_pay.html
3. Kursmark, L. (2007, April 7). What is HR's Role in Employee Termination? Retrieved
April 25, 2015, from http://hrpeople.monster.com/training/articles/35-what-is-hrs-role-
in-employee-termination
4. Termination Checklist. (n.d.). Retrieved April 23, 2015, from
http://www.twc.state.tx.us/news/efte/termination_checklist.html
5. Termination for Cause Law & Legal Definition. (n.d.). Retrieved April 27, 2015, from
http://definitions.uslegal.com/t/termination-for-cause/
6. Using the termination process to minimize claims. (2002, August 16). Retrieved April
23, 2015, from
http://www.hr.com/SITEFORUM?&t=/Default/gateway&i=1116423256281&application=
story&active=no&ParentID=1119278127660&StoryID=1119649981265&xref=https://w
ww.google.com/
7. What You Should Know About Your Retirement Plan. (n.d.). Retrieved April 27, 2015,
from http://www.dol.gov/ebsa/publications/wyskapr.html