Effective small business management could prevent former employees from filing lawsuits
The Canadian unemployment rate lingers at 8.3 percent. Many of the nation's currently unemployed were laid off due to economic hard times Canadian businesses faced.
It makes sense to fire inefficient employees in hard times, but many do not take the news well. Alf Wilkins was laid off from the Mackenzie, B.C.-based mill company he worked at for years. "It makes you mad," he told online magazine The Tyee.
According to a report from AlphaStaff Group, recession-related layoffs often lead to wrongful termination lawsuits. To protect themselves from legal woes after making perhaps justified layoffs, small business owners might want to take up strategic management policies.
Heather Gatley, executive vice president of human resources at AlphaStaff, advises small business owners to think about legal obligations surrounding terminations. She encourages "adopting fair employee policies and documenting termination procedures."
Keeping a diligent file of employee evaluations and documenting all communication with an employee who might be fired could protect small business owners against lawsuits from disgruntled former employees.
Hopefully, recession-related layoffs won't be an issue much longer. According to a recent statement from the government's Priorities and Planning Committee, creating and maintain jobs is a top priority in light of signs that the economy is stabilizing.
