Disciplining or terminating an employee brings about unwanted stress, but it can also open your business to a list of liability exposures. It is easy to believe that once an employee has received a corrective warning or has been terminated there will no longer be a problem. This is not always the case. There are many types of claims that an employee can file against you or your company if they feel they have been wrongly disciplined or terminated. But, there are ways to help prevent a claim if you are aware of the risks.
It is essential to clearly define your company expectations and individual roles for employees in a handbook which employees should sign. Conduct periodic performance reviews. The most important strategy to help prevent a lawsuit is to keep a paper trail for every employee and include corrective actions and performance reviews. Never embarrass a terminated employee by bringing in security to escort unless they were terminated for theft or a violent offense. Institute a zero-tolerance policy against discrimination, drug abuse and harassment. Also, establish an “open door” policy in which employees can report incidents without the fear of retaliation.
Add another line of defense with Employment Practices Liability Insurance. Even if you or your company are not found guilty of wrongful termination or discipline, lawsuits can be expensive, even devastating. EPL insurance can help offset some of these costs.
To learn more about ways to protect your business before disciplining or terminating an employee, read this informative article. At Conrey Insurance we want to ensure your business is properly protected against potential risks. That’s The Conrey Difference. Give us a call at 877-450-1872 or visit our website.