Dealing with wrongful termination claims

Wrongful termination is something that no employer or employee wants to deal with. For employees, it means that they were not let go in a fair and just manner and for employers, it might mean that they have messed up along the way. However, there are cases where employers are accused of unfairly dismissing someone when that is not the case. Here are a few ways to avoid those situations. 

1. Ensure that the reason for the termination is reasonable

It is imperative that the reason for the proposed dismissal is related to the employee’s conduct and performance. It should be in accordance with any award or agreement that covers the employee and not violate any laws pertaining to discrimination, equal opportunity, contracts, or other matters. Even if an employer thinks they have grounds for dismissal, some circumstances may lead to wrongful termination. This includes pregnancy, career responsibilities, joining or representing a union. 

It is important to note that even though employers can fire a worker who has mental health problems, there are a lot of things that need to be taken into account to make sure it’s fair. The main consideration is their ability to complete their work responsibilities to the required standard. The employer will need to make reasonable changes to accommodate the employee’s mental health issues; they will need to provide constructive feedback in performance reviews, and they will need to communicate with the individual openly to reach the best possible working arrangement. 

Trying to dismiss an employee without exercising a duty of care might be deemed as discriminatory and may lead to a wrongful termination case. 

2. Keep track of warnings, meetings and conversations

Before termination is even considered, it is important to exhaust all other options. A warning may sometimes be enough to improve employee performance or conduct. Through Polonious, HR managers can keep track of different employee cases. Whether those are related to misconduct or poor performance, teams can log warnings, steps taken to support the employee and generate quick reports that can help the business in legal proceedings. 

If the dismissal leads to a wrongful termination case, then the company will need to show that it took all the necessary steps before it chose to let the employee go.

3. Set out clear expectations from the start

When a new employee joins the business, it is crucial that the company communicates clearly what is expected of them. This includes KPIs, general goals for the year, behaviour expectations and any other metrics relevant to their role. To ensure fairness across all levels, the organisation should have comprehensive policies that cover a wide range of situations and procedures. A code of conduct will also be necessary. 

A termination can only be legal if it is based on multiple reasons or a severe situation. For example, missing one or two KPIs may not be deemed reasonable, but firing someone because of proven sexual misconduct is fair. Employers should not be looking to find loopholes in how they can fire employees legally. They should be looking for ways to empower workers and encourage them to do better. 

4. Investigate the issues

An investigation is very helpful in avoiding wrongful termination claims. It also ensures that if the employee raises a complaint, the company can show that it followed due process. In some cases, investigators may need to look into conduct after work hours. 

When ALDI fired an employee for inappropriate behaviour at an after-hours celebration, the employee countered that the dismissal was not fair. ALDI investigated before proceeding with the termination to ensure that it was reasonable. Based on the evidence collected during the investigation, the Fair Work Commission determined that this was not a case of wrongful termination. 

Employees were responsible for the way they acted at a work party and ALDI had taken the necessary steps to prevent misconduct or an illegal dismissal. Even though companies view investigations as expensive and time-consuming, our clients have found that Polonious assists in achieving a faster turnaround time and also contributes to lower investigation costs. 

Our system streamlines the investigation process so the team can spend more time focusing on core business tasks, rather than paperwork. If you want to hear how experts take full advantage of our system, book a free demo today. 

5. Let the employee respond

Firing an employee without giving them a chance to share their side of the story can be grounds for wrongful termination. If an employee’s performance is lacking, ask them if something is going on, check in on them and encourage them to raise any concerns they have. Even during the investigation, it is important to have an interview with the worker, not only the employer. This will lead to a fairer outcome, ensuring that both sides understand how the final decision was reached. 

6. Invest in training and development 

Training and development do not guarantee complete avoidance of wrongful termination claims, but they show that the business values its employees and wants to invest in their progression. Career development highlights that the company prioritises employee needs and wants and does not treat individuals as just a number. 

Training is also a great way to introduce newcomers to policies and remind current employees of what is required. Targeted training and development can focus on the weaknesses of staff and ensure that they stay updated with changing trends and legislation. Well-trained employees will know their rights and will be able to tell what is right and wrong more easily.

Wrongful termination claims: Are you proactive or reactive?

The goal should be that the business does not receive wrongful termination complaints because the company does everything fairly and has reasonable grounds for the dismissal. To keep track of different employee cases, our clients use Polonious as we enable them to manage everything from one place. They can record incidents, detect red flags and investigate instantly before things escalate. We provide them with automated reports that keep a log of their actions and notes. 

If you are looking to be proactive, book a free demo with one of our friendly experts today.