Termination

One of the most important and difficult aspects of management is terminating an employee.  However, once management has identified an employee who does not meet performance standards, action must be taken.  It is common knowledge that employees who do not follow correct procedures or have bad attitudes are far more likely to be injured on the job.  The rights of employees injured on the job are protected by complex state and federal laws which may make taking action much more difficult.  

Your dealership should clearly state in all Handbook, Employment Applications, Letters of Offering, and Policies and Procedure material that employment is "At-will".  The employment-at-will status should be protected with disclaimers such as the following sample:

I understand that my employment is not for a specified or definite term, and that I may be discharged, or I may resign, at any time, for any reason, with or without good cause and with or without prior notice.  I further understand that this policy cannot be changed or amended except by written agreement signed by me and by an authorized corporate officer.

When terminating for economic reasons, determine a non-discriminatory plan for cutbacks, i.e., slowest performers, seniority, least experience.  Use caution and make sure the real reason is economic.

Well-documented, fair, honest evaluations indicate due process.

Terminate only for "just cause" after progressive discipline.  Use the following checklist to help you determine if "just cause" has been satisfied.  

____ Notice - Did the employer five the employee forewarning of the possible consequences of the conduct?

____ Reasonable rule or order - Was the employer's rule reasonably related to efficient business operation and performance reasonably expected of the employee?

_____Investigation - Did the employer make efforts to learn whether the employee did violate a rule or order?

_____Fair Investigation - Was the investigation conducted fairly and objectively?

_{_____}Proof - Did the employer obtain substantial evidence during the investigation?

_{_____}Equal Treatment - Has the employer applied the rules and penalties without discrimination to all employees?

_____Penalty - Was the discipline administered by the employer reasonable with regard to the seriousness of the employee's offense and the employee's record with the employer?

A "no" answer on any of the above questions means that "just cause" has not been satisfied.

There may be some circumstances which are serious enough to require immediate termination.  You may choose to establish a list of circumstances which may result in immediate termination.  Make sure that all employees are clearly made aware of the circumstances and their consequences.  An employee handbook is a good place to publish this information.

Examples of circumstances for immediate termination -

• Reporting to work under the influence of alcohol or drugs.

• Theft

• Violence or the threat of violence.

• Willful or reckless destruction of company property.

• Horseplay that endangers the employee, co-workers, or customers.

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