Imagine you want to terminate an employee and either discontinue the position orreplace them with someone else. You believe your decision is in the best interest of your business and the rest of your staff.
But how in-depth does your conversation with the employee need to be? While it’s understandable that they will want to know why they are losing their job, do you have a legal obligation to explain yourself?
The threshold question is: Are they an at-will employee, or do they have an employment contract?
In the rare circumstance, that your employee has an employment contract that guarantees employment for a certain term unless they are terminated for cause (e.g., intentional misconduct), you may need to explain the reason for the termination in order to satisfy contractual requirements.
On the other hand, if the employee is an at-will employee, as is the case for most employees, you can fire them for any non-discriminatory, non-retaliatory reason or for no reason at all. Further, you are not obligated to provide an explanation or give them any advance notice.
At least, you don’t have to explain yourself in the termination meeting. Minnesota employees do, however, have the right to make a written request for the true reason for their termination. They must make the request within 15 working days of their termination, and if they do so, employers must provide a written explanation within 10 working days. It is important that employers consult with their attorneys before providing any written response because once it is out there, it is locked in and out there forever.
In short, employment terminations should be handled carefully. Be sure you understand your legal obligations as an employer before taking any permanent action.