Here is an excerpt from an article by Jeff Garr featured at the HR Knowledge website. To read the complete article, check out other free resources, and learn more about the firm, please click here.

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Wrongful termination is one of those claims that small businesses dread. Sooner or later, every business has to face the fact that an employee must be terminated. Whether it’s due to downsizing or performance, there is always that concern that the employee will file a claim or attempt to sue to the employer.

How you handle employees during the termination process can have an impact on whether the employee decides to file a claim. Sometimes, the person may just be litigious and there is nothing you can do to prevent a bad experience, however with most circumstances a termination that is handled appropriately will go a long way to avoiding lengthy and expensive litigation.

Here are [two of six sets of] tips and best practices to avoid wrongful termination litigation:

Define work expectations. If the time comes to terminate the employee, it should not be a huge surprise. Documenting the process is important especially documenting progressive disciplinary measures. Regardless of whether your company is large or small, keeping records of the situation goes a long way to avoiding litigation, and it also ensures that appropriate procedures are followed. Having a system to identify performance objectives and advise the employee on whether they meet or don’t meet those criteria is helpful not just for termination, but also for training and motivating your staff.

Terminate thoughfully. Even if the employee recognizes that they may be terminated the actual event may still come as a bit of a surprise. Keep in mind that it’s a form of rejection and not all people take rejection the same way. Try to position the termination in a way that helps the employee to understand that although they are leaving your employment, they may be happier in a position or with a company where they are better suited. That may not always work, but using compassion and empathy can go a long way. Also helpful is offering a severance or some way to help the associate for a short period of time. If you offer the severance, have the employee also sign a waiver or release in order to collect the package that is offered.

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Here is a direct link to the complete article.

As CEO of HR Knowledge, Jeff Garr has been a driving force behind the company’s significant growth. He is the creator of HR Knowledge’s signature “concierge-level client service,” which has helped position the company as a leading provider of outsourced HR for, among others, small- to mid-sized businesses, nonprofits, charter and private schools, and high tech companies. HR Knowledge provides integrated HR, payroll and benefits services. Its offices are located in the metropolitan Boston area but it serves client companies throughout the United States.