Austin Business Lawyer

The Rules of Terminating Employment

The Issue

Making the decision to let an employee go can be a difficult one. However, as a business owner you have to keep the health of your company a priority. If an employee consistently breaks company policy or performs under company standards, they are probably not a good fit for employment. Terminating someone’s employment is a sensitive issue, however, and there are certain procedures that must be taken in order to ensure that the proper legalities are followed.

Final Paychecks

Should you have to terminate or lay off an employee, you are required to provide them their final paycheck on their last day of work. You will be in violation of labor codes and could be penalized with various fines if you wait until the next regularly scheduled pay period to pay the employee their final wages.

If an Employee Quits

In the case of an employee voluntarily ending their employment, how soon they give you notice of their decision dictates when you must issue them their final paycheck. So long as they provide at least 72 hours notice, their final paycheck must be provided on their last day of work. Should they provide less than 72 hours notice, you are not required to pay them their last paycheck on their final day at work, but must do so within 72 hours from their notice.

If you are an employer or business owner who has to terminate an employee, it necessary to make sure you follow state and federal labor laws. Consulting with an attorney to make sure your termination policies are in adherence with regulations could save you costly litigation in the long run.

Contact an Austin Business Lawyer

Contact the Austin business lawyers of Slater Kennon & Jameson LLP at 512.472.2431 today.