Firing Employees FAQ

Questions:

• Can I fire an employee for any reason?
• Do I have to give a fired employee a severance package?
• What do I tell prospective employers who call me for a reference for an employee whom I fired?
• Should we contest a fired employee's claim for unemployment?
• How should I tell an employee, "you're fired"?
• Should we ask a lawyer to review all termination decisions?
• What are the practical items we need to take care of when an employee leaves the company?
• Can I fire an employee for making a false complaint about our company's billing practices to a government agency?

Answer:

What are the practical items we need to take care of when an employee leaves the company?

Whether an employee quits or is fired, you will need to handle certain basic paperwork and legal requirements. For example, you'll have to cut the employee a final paycheck within the time limits set by your state's law. You'll need to get back company property, deactivate passwords and access codes, and so on. And, you'll need to provide paperwork on continuing health benefits, if the employee is entitled to COBRA continuation coverage. For a checklist of practical matters you'll need to handle for departing employees, see Nolo's article When an Employee Leaves.