Free Agent CFO™

Employee Terminations

I can handle tricky and uncertain cash flow problems with the owners I serve. There’s always a way out. On the other hand, what intimidates me the most with my clients is when an employee needs to be terminated. What if we do it wrong? What if we’re sued? If you encounter this situation in your practice, know your role.

Advising Clients Who Need to Terminate an Employee

I’m no legal attorney. But my education in common sense and wisdom ranks high. Accordingly, my standard response to every owner wanting to terminate an employee is to run this by a labor attorney first. Some of your clients have HR professionals who will conduct the termination process. Even HR professionals need assurances they are following the letter of the law that is looking out for the employee’s best interests.

If you are unfamiliar with employee terminations, here is one of my favorite videos on this topic. His name is Aaron Hall, and he’s a Minnesota attorney. While this is a 24-minute video, it’s instructive and insightful.

My favorite piece of advice in this video is the documentation process Aaron discusses fifteen minutes into the conversation. When I’m anticipating a staff member will be let go, I’m encouraging the owner or the HR professional to over-document their findings, advice that I believe every labor attorney will agree with.

Finally, if your client does not have a labor attorney or an HR firm it works with, find at least three resources your client can interview because their services will be needed during your tenure with that business owner.

Categories: Clients
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