Termination Done Right: A Legal Checklist
Terminating employment is one of the highest-risk actions an organisation takes. Done wrong, it exposes the business to legal claims, reputational damage, and destroyed trust. Here is what to check before, during, and after.
Before the Decision
Have you followed a fair process? Is there documentation? Has the employee had the opportunity to respond? Are you terminating for a potentially automatically unfair reason (whistleblowing, pregnancy, union activity)? If you cannot answer these confidently, you are not ready.
Check Notice Entitlements
Statutory and contractual notice must be correct. Calculate carefully, including any notice period enhancements in the contract. Paying in lieu of notice is usually fine, but check the contract first.
Prepare the Paperwork
Have the termination letter ready before the meeting. Include the reason for termination, the effective date, notice arrangements, details of any final pay, and information about company property and system access.
The Termination Meeting
Keep it brief, clear, and humane. Do not drag it out. Have HR or a witness present. Give the employee the letter. Allow them to ask questions. Do not negotiate or relitigate the process in the room.
Post-Termination Actions
Revoke system access promptly. Collect company property. Process the final payslip accurately, including any accrued holiday. If a settlement agreement is involved, ensure the employee has received independent legal advice.
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