Human Resource Blog

Legal Ramifications of a Poor Performance Review

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My company has been dealing with an employee who we have had to let go. The employee is now trying to say that there is no reason to let him go. In reality, the employee had horrible performance, but he claims that it was all fabricated by us so that he could be fired. How should we proceed in such a case?

Well, as long as the employee had horrible performance, you have a record that he was unable to meet the requirements of the job and that he should, in that case, be fired. For this reason, and many others, it’s important to keep records and statistics about your employees so that if a problem ever arises, you have the statistics that prove your case.

In essence, by keeping detailed records about your employees’ performances, you are building a case about why to let them go or to give them a raise. It’s important to have this written documentation in order to be legal about all changes in employment, including positive ones, so that other employees feel that they are being treated fairly.

Make sure that when you design and execute your appraisal system of your employees, that you are consistent. If you do show any inconsistencies, then your employees may with within their right to say that they were discriminated against and it may actually hold up in court.  Here are some tips for helping you stay consistent in your reporting:

Make sure that records include good information as well as bad information, when it’s reported. Courts like to see that you have been thorough and impartial in your evaluation of each employee.

Keep records of good performers as well as poor performers. Again, you will need this information for raises and other bonuses that your employees may be eligible for.

Have a strong performance review schedule so that you can anticipate when the reviews will take place.

If an employee has already begun litigation against the company, be cautious. They should not receive preferential treatment in any case.

Be consistent across the board. This, more than many other tips, is the most important and may keep you out of a great deal of legal hot water.