Here is how to effectively avoid “hiring”
issues:
1) Keep a record of your interview notes – don’t write anything that may be considered discriminatory. Keep a record of the job description and requirements which you provided to the employee originally.
2) Don’t exaggerate or understate your expectations of the employee, the success of the company, the future of the position, opportunities for advancement, etc. Some courts have ruled that statements made during an interview such as “We won’t be downsizing” are binding as a contract. When fired, the employee can then claim you have breached the contract. Serious trouble can come from seemingly benign statements like: “We don’t fire without just cause” or “Our company will offer you job security”.
3) In the offer letter, stick to the point. Don’t use terms such as “permanent” or any other term relating to time. Either verbally (with a note that it was done) or in the offer letter, make sure the employee is told that “the employer or employee has the right to terminate the employment at will.”
4) Make sure the new employee receives necessary training and that expectations are clearly outlined. Keep a record of time spent helping employee.
5) Give written and verbal feedback. Before firing, the last two feedback reports for an employee should be negative. Don’t try to sugar-coat, writing that there is improvement – this will just cause you problems later. Keep a record of efforts made to help the employee to improve.
6) Treat your employees with dignity. Embarrassing them, or treating them in a way that most people would consider unfair, will only encourage them to sue you, and will gain the sympathy of a judge/jury.
7) Remember that it is worth shelling out some money to get advice from a lawyer now, to prevent lawsuits in the future. Go through your human resources cycle with an employment lawyer and make sure that everything is on the up-and-up. It could save you big bucks down the road.