The repercussions of employee terminations

MANILA, Philippines – In many countries, terminated employees are suing their former employers.  They cite laws prohibiting discrimination on the basis of race, national origin, physical handicap, sex, age or union activity.  The aggrieved employee can win the court battle, be reinstated, receives back pay and sometimes damages for emotional injury.

All employers or persons in authority must treat every termination as though it may be challenged in court in the future.  It is therefore important that a thorough review of company’s handbooks, manuals and bulletins must be done pertaining to terms and conditions of employment.  In addition, the management’s prerogative to terminate an employee must be delicately indicated on the employment application.

The salary, benefits and working hour requirements discussed during the interview of a new employee is already considered as contract.  The authorized hiring personnel are warned though not to make any promises upon hiring an employee that the company cannot sustain.

In spite of the fact that a business slump is valid reason for lay-off, employers must be ready to prove why others are laid-off while the others are retained.  Aside from the last hired, first fire rule, the employer must also be ready with substantial documentation in case the area of merit turned out to be the issue.

To prevent termination suits, every hired employee must be given a copy of work rules and disciplinary procedures.  The copy must be acknowledged by the hired employee by signing an acknowledgement receipt.

When discipline is necessary, it must be dealt with accordingly by the superior using the existing rules and regulations acknowledged by the employee as reference. –Estrellita C. Oyos, Manila Bulletin