Everyone Should Benefit When an Employee Is Properly Fired

While most people don’t enjoy being fired from a job, everyone can benefit if the process is handled properly. To understand how this result is possible, it’s important to remember that your employees must be able to work together as a team. When one member is completely out of sync with the others or simply cannot do the assigned work in a timely manner, everyone suffers. So, once you’ve efficiently moved through the firing stages, most staff members will finally get the chance to perform at their highest level again.

The following information provides a brief overview of important goals to keep in mind when firing an employee. It also provides tips for protecting your company from wrongful termination lawsuits and describes the best way to meet with people while firing them.

How to Display Good Character and Protect the Business from Lawsuits

  • Be sure to clearly explain all employee management and firing guidelines in an employee handbook. Always hand one of these out to all new-hires on their first day at work and have them sign a simple form noting that they’ve received the booklet and will carefully review it right away. It’s even better to gather together “new hires” within a week or two of their starting at your company and covering basic information in the handbook;
  • Carefully investigate all the facts involved with possibly firing a specific employee. Also, make sure all supervisors are regularly interacting with each employee and telling them when their performance needs improvement – in writing (be sure to have the employee sign and date this form before placing it in a permanent file);
  • Review all applicable state and federal laws regarding termination. If necessary, speak with your attorney if you have any major questions – or believe the employee is likely to sue. Always remember that some employees are very sensitive to issues involving race, gender, ethnicity, religion, nationality, veteran status, disability, age and sexual orientation;
  • Gather together all pertinent, written evidence concerning the employee’s work record. Be prepared to keep this file in a very safe place in case a lawsuit is later filed. While doing this, rethink all the hiring practices that may need to be revised so you can avoid hiring a similar person in the future;
  • Treat the employee with dignity and respect. Don’t gossip about your firing plans. Meet with the employee in a private office setting with at least one other staff member present to serve as a witness. Respect the fact that the process of being fired may be hard on the individual. Unless the employee is guilty of terrible misconduct, remain open to paying a later unemployment insurance claim. Consider offering a severance package in exchange for the employee signing a waiver not to sue for wrongful termination. Be polite yet firm when simply stating the reasons for your decision. Finally, let the individual speak briefly about how they feel about the event. And be sure to pay all monies owed for accrued sick leave and vacation time;
  • Know that you may face sociological repercussions among other workers after the firing. If what you have done in firing a specific person is considered unfair, you may have a problem regaining the respect of many co-workers and superiors. It’s always wise to meet briefly with all concerned employees and simply state that the individual is no longer with the company and that you would prefer to not discuss it further for privacy reasons;
  • Be sure to retrieve all company property prior to providing a last check to the fired employee. You’ll also want to ask for the company laptop and any keys to office property. Be sure to immediately notify your computer and building security forces so they can block the employee’s future access to the company database and email system.  You’ll also need to collect all company I.D. cards and uniforms.

Finally, try to part on pleasant terms with outgoing employees, perhaps noting that you believe that they’ll find a better fit in other positions soon. Everyone really can benefit from a properly handled firing since it can eventually improve workplace morale. In fact, even the fired employee may soon find an equal or better position somewhere else.

Be sure to call our firm if you need any specific advice about preparing an employee handbook, interacting with troublesome staff members — or any other employment law issue.

Voters To Determine Whether Texas Changes Home Equity Lending Laws

Now that the Texas House and Senate have approved SJR 60 and its companion bill HJR 99, Texans must decide in November whether we should amend our state constitution’s home equity law provisions. Any changes to the state constitution require a voter-approved amendment. The proposed changes may benefit many borrowers and they would remove a prohibition that currently prevents agricultural homestead owners from seeking home equity loans.

Additional Changes Addressed by SJR 60/HJR 99

This joint bill is designed to accomplish several goals. One key objective is to lower the current three percent cap on fees that can be charged to borrowers initiating a home equity loan down to only a two percent cap. To achieve this change, the bill separates out from the cap such fees as property surveys, appraisals, title exam reports and state base premiums. This change is designed to help low-income borrowers and those needing loans in more rural areas.

This means that borrowers seeking home equity loans under $50,000 might currently see those added fees go over the three percent cap. However, if the cap is lowered and the other changes noted above are made, those same borrowers could probably avoid that problem. This proposed amendment would also increase the present loan-to-value ratio up to 80 percent (from its current level of 50%) on home equity lines of credit.

Consumers may also benefit from a new provision allowing them to refinance home equity loans that have already existed for at least one year. They could turn such loans into traditional mortgages if all required conditions are met. Those who wish to make these types of changes would be owed new disclosures clearly outlining the potential benefits that might be lost by making this change. Special time deadlines would also have to be met, making sure that each consumer clearly understands the full impact of converting the loan into a traditional mortgage well before the refinance closing date.

Recent Legislative History Regarding This Joint Bill

Back in 2015, Representative Richard Raymond of Laredo proposed a bill that addressed the three percent fee cap issue by removing specific third-party expenses from the cap. Although that bill failed to pass, it did raise awareness of these important issues.

Meeting Constitutional Change Requirements and Putting Matters to a Vote

The passage of these joint bills required a two-thirds majority vote in both the Texas House and Senate. Now that requirement has been met, it’s time to put this matter on the ballot so voters can make the final decision on November 7, 2017. Should Texas voters approve this amendment, the changes to our state constitution will take effect on January 1, 2018.

Should you have any questions about how you should initiate financing for your home or other purchases, please contact our office and allow us the privilege of helping you. We can also answer any other questions you might have about various contracts and lending practices.