Dismissing an employee is often a difficult task for an employer. Nevertheless in serving an employee his walking papers certain procedures must be followed. In order to do this, an employer must first prepare a good severance package for a departing employee.
The article, “Writing a Termination Letter – If you Offer a Better Severance Package “, posted on February 15, outlines the procedures for writing a better termination letter and a severance package.
According to the article, the ideal package must contain the following information:
- A notice of termination stating the reasons
- The terms of settlement in the severance package
- The benefits offered by the company
In serving a severance package to an employee, certain procedures must be followed. This includes:
- The employer should inform the employee on his termination
- The employer must cite the reasons for his termination
- The employee must explain the benefits of the severance package
- The dismissed employee must be given a chance to explain his side of the issue
- The employee has a right to see and meet with his lawyer
- The severance agreement must be signed by the employee
In most cases, a severance package is offered in exchange for a release and it is considered a company option. If a worker quits his job voluntarily or dismissed with cause, he is not entitled to any severance package from the company. It must be remembered that employment severance packages are a company’s prerogative and is being offered as a gesture of goodwill to a former worker.
However, in some cases, legal disputes arise when a dismissed employee files an illegal layoff lawsuit. This happens when a company lacks the preparation to deal with the issue.
To properly address this problem, a company must anticipate this and hire the services of a lawyer who can draft a termination notice and a severance package even before the need arises. In terminating an employee, one should make sure that a worker has signed a termination form to set the records clear.