Given the average damage award in a wrongful dismissal suit is over $500,000, your time preparing is worth it. In particular, we don't always have evidence, we don't always layoff for a legal reason and laid off workers will often sue us for bogus reasons. Notifications of separation might be the most difficult writing an employer or human resources supervisor has to do during a workday. Saying or writing the wrong thing can easily lead to a bias law suit or a wrongful lay off lawsuit.

As a provision of COBRA, you should let a former worker and his dependents stay on your group health insurance plan for at least 18 months. Saying or writing the wrong thing can easily lead to a bias suit or a wrongful separation suit. If you do, expect a wrongful termination suit with a big jury award. Its main purpose is to document and clarify the reasons for the termination, when the termination takes effect and what final benefits and pay the company owes the jobholder. A high risk dismissal is where the jobholder is likely to sue and you have inadequate evidence. It's unlikely the jobholder will sue you and, if he does, you'll likely prevail. As unpleasant as the idea of job termination might seem, sole proprietors and Personnel Managers can approach it in a well thought out way to minimize the negative feelings associated with "letting people go.". Document each meeting and make clear the corrective actions the employee should take. Also once you separate an employee, you have the legal right to refuse to give a positive reference. Sometimes, an at will worker will refuse to sign this documentation. If the gross misconduct occurs and could damage the business, then you must take full use of your policies and reprimand the employee, possibly even terminating their employment.