Arnold, Bruce & Doerfler Insurance Blog
There comes a time in the life of every business that it has to let go of some employees. As a general rule, there are two situations when an employee has to be let go. The first is called causes and the second is called authorized causes. But in both situations, the employee is afforded a kind of due process.
Just causes, as the name suggests, contemplate a situation when the employee did something to justify his or her termination. One example of this is when the employee is plundering the company till. Another is if the employee is absent more often than he is present. In all cases, the employer is justified in terminating the employee.
When this happens, the law provides that the employee must still be notified and given the opportunity to be heard. This means that he must be given the opportunity to explain himself. Ideally, he can explain why he should not be fired. But of course, this is just an act of fairness to make sure that people are not terminated just out of hand.
Compared to just causes authorized causes tend to imply situations where the business must let go of employees. It is not because they did something wrong but rather because the business no longer needs them. This can occur when the business buys a labor-saving device like perhaps an order taking a machine that can replace the cashier.
In this case, the Department of Labor usually requires that it is notified to confirm that the authorized cause is valid and the business isn't just trying to cheat the employees for the sake of saving a few dollars.
Be Kind When Letting People Go
Whether it is an authorized cause or a just cause, unless the just cause is something along the lines of the employee robbing the business, you had better be kind and speak plainly to the employee.
In the case of an authorized cause, there might come a time when you want the employee to come back and work for you. If it is a just cause, you don't want him badmouthing you to their next employer.
Liability insurance will help lessen the cost of losing employees.
At Arnold, Bruce & Doerfler Insurance, we aim to provide comprehensive insurance policies that make your life easier. We want to help you get the insurance that fits your needs. You can get more information about our products and services by calling our agency at (503) 222-1951. Get your free quote today by CLICKING HERE.