Anchor Payroll Blog

In the 2009 movie Up in the Air, George Clooney and Anna Kendrick play corporate downsizers—HR consultants that companies across the country hire to terminate employees for them. The practice wasn’t exactly common at the time, and fortunately never took off, but it was believable.

The importance of documenting performance problems as they occur cannot be overstated. Although this requires meeting with the employee and discussing the issue, which will almost certainly be uncomfortable, it’s your best defense to a wrongful termination claim should the employee feel litigious after termination.

Too many employers rely on the concept of employment at-will to protect them, when the reach of this concept is actually quite limited. The problem is that if an employer has little to no documentation and relies on at-will employment—and the theory that legally no reason is required—the terminated employee, their attorney, and possibly a jury of their peers will fill the blank with an illegal reason. Although you may be within your rights to terminate “for no reason,” it’s a dangerous position to take.

The prospect of corrective action or termination makes a lot of managers nervous. That’s understandable. For employees, being disciplined or losing their job can be anything from moderately embarrassing to financially devastating, but it’s rarely a happy occasion. For the employers, these actions always come with some risk, and there are plenty of legal danger zones an employer can end up in if corrective action isn’t done properly.

We are going to talk for just a couple minutes about the magic formula for documentation. Why are we talking about documentation at all? Well, one of the most common questions we get is, “Can I terminate this employee?” The first thing we say in response is, “Do you have documentation of the poor performance or the behavioral issue?” Sometimes the answer is “yes,” often the answer is “no.”

It is really important that employers have documentation to back up their employment decisions. That documentation should have a few elements. So, let’s talk about those.