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Author: Scarinci Hollenbeck, LLC
Date: April 22, 2022
The Firm
201-896-4100 info@sh-law.comTerminating employees can be one of the hardest parts of running a business, but unfortunately, it is a part of life. While we can’t really help executives and managers make it less awkward, there are steps you can take to reduce the risk that the termination will harm your business down the road and part of it is empathy and dignity.
A mortgage lender startup recently made national headlines when the CEO of the company fired hundreds of workers via a Zoom call. According to media reports, other workers found out they had been terminated when they saw a severance payment in their bank accounts.
The company, Better.com, faced backlash from both its employees and the public. After receiving negative press coverage, the startup subsequently issued a statement on its blog, apologizing for the way the layoffs were handled. “I want to apologize for the way I handled the layoffs last week,” CEO Vishal Garg wrote. “I failed to show the appropriate amount of respect and appreciation for the individuals who were affected and for their contributions to Better. I own the decision to do the layoffs, but in communicating it, I blundered the execution. In doing so, I embarrassed you.”
The incident has understandably raised questions about how to terminate an employee without opening yourself up to legal and reputational risks. While terminations are a necessary part of every business, there are steps employers can take to reduce the fallouts, including:
While firing an employee is never fun, companies can make it less painful for everyone involved by having clear policies and procedures in place. Working with experienced counsel can also help ensure that you understand your obligations and take any necessary steps you reduce your legal risks.
For assistance with any needs your company may have regarding such employment disputes please contact me, Arianna Mouré, at 201-896-4100.
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