Maintain personnel records for protection

Do you have a "problem" employee who is habitually late or constantly disruptive? At some point, when you are particularly fed up, you may decide to end the employment. However, you could face repercussions later if you have not properly documented the reasons behind the termination.

Practical suggestion: Establish a performance file for each and every employee. The file should include records of meetings with employees (e.g., annual salary reviews), as well as notations of unusual behavior and other occurrences during the year. This file will be invaluable in case you are ever targeted for a wrongful termination lawsuit.

When you are assembling information for a performance file, consider the following points:

*Be consistent. If you write up one employee for a certain type of behavior, you must do so for other employees. Similarly, if you "look the other way" when a favorite employee acts the same way, you should ignore the behavior for all employees. Refer to your files to see how you have treated comparable situations in the past.

*Don't let your emotions cloud your judgment. Avoid personal impressions or unsubstantiated conclusions such as "I think she's a complainer," or "he hasn't performed the same since his divorce." If a statement is inappropriate in general conversation, it is not appropriate for the file either.

*Document behavior with specific data. Instead of simply stating that "she has been late numerous times," or "he has consistently performed substandard work," it is better to provide details. For instance, the file may indicate that the employee left work with no explanation at 10 a.m. on July 1, 2009.

*Address issues head on. For example, if tardiness has been a recurring problem, document the consequences for failure to correct the behavior. Provide dates when warnings have been given about tardiness, and note when the employee was informed that termination of employment would follow the next unexcused occurrence.

*Accentuate the positive as well as the negative. The file should also include references to extraordinary work and accomplishments. Try to present a proper balance. If the file is completely one-sided, it may strengthen an employee's discrimination claim if he or she is eventually fired.

*Don't omit critical facts. In fairness to employees, there may be extenuating circumstances that can mitigate certain types of behavior. Be sure to provide a complete and unbiased summary.

*Have each employee read and sign any documents that are going into his or her personnel file. If the employee refuses to sign a particular document, indicate that fact in the file.

*Last but not least, follow up. Employees should be allowed to respond in writing to the comments you have made. Include the responses in the file to complete a balanced presentation.

Naturally, the performance file will also be useful for positive employee reviews. It can help you determine salary increases if your company is prospering.