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This document is a template spreadsheet that will help your company calculate the costs associated with terminating an employee, and to obtain authorization to terminate.
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Regardless of the jurisdiction in which you operate, when involuntarily terminating the employment of an employee, it's important that you establish appropriate protocols when doing so. One such protocol is calculating the costs associated with termination and obtaining approval to proceed with the termination. As terminations are governed by legislations, it`s important to get the calculations correct.
Involuntary termination is a stressful experience for both the individual(s) carrying out the termination as well as for the employee. Various factors contribute to the high stress levels. Often times, it's request from the management for a termination to be carried out quickly for various reasons. To ensure accuracy of data and speed are not compromised, it helps to automate the termination process to reduce potential errors arising from manual calculation. The use of an Involuntary Termination Authorisation form is an efficient way to automate the process. The Authorisation Form has cells with built in functions which enable termination costs to be calculated quickly. For example, to calculate pay in lieu of notice as per Employment Standards, input data required are (1) entitlement as per Employment Standards (in weeks) and (2) employee earnings. The Form calculates the pay in lieu of notice automatically. Also, the Authorisation Form acts as a proof that the termination is authorised and that termination payout has been approved.
Besides ensuring termination costs is calculated correctly, HR also has a major role to play in ensuring terminations are carried out in a fair manner and with compassion, and that all due dilligence has been carried out. This helps avoid allegations of bad faith termination or wrongful dismissal. Check this additional resource on involuntary termination which includes a process guide for managers on how to conduct an involuntary termination.
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Once this ConnectsUs document has been modified for your company, HR staff will use it for each involuntary termination, as follows:
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Termination Calculation & Authorization Form | | | Accompanying Instructions for Staff |
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The template referenced on this page can be used on its own as a stand-alone tool, or in conjunction with other HR templates in the Contracts & Agreement Kit that includes the following documents: This form template ensures that all information about a candidate and position is collected and summarized, so that HR has the information they need to process an employment or independent contractor agreement. A contractual agreement template between the company and the employee that establishes the terms and conditions of employment. This agreement template is intended to be used to clearly articulate and establish the terms and conditions of a contract between your company and an independent contractor. A contractual agreement between an employee and your company allows you to bypass overtime rates by averaging the employee’s hours of work over a period of 1, 2, 3, or 4 weeks. This is a contract agreement that is signed by Staff, in the presence of a witness, to acknowledge that they've read, understood, and will adhere to the Staff Policies section in your Employee Handbook. An agreement used to obtain signed confirmation from front line and reception staff to acknowledge their understanding of company protocols and expected service levels. This document is a template spreadsheet that will help your company calculate the costs associated with terminating an employee, and to obtain authorization to terminate. Contracts & Agreement Templates in this Kit
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Description
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