Hit ‘reset’ button with last-chance agreement — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily
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Hit ‘reset’ button with last-chance agreement

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in HR Management,Human Resources

Should he stay or should he go? Sometimes, a marginal worker shows promise and immediate termination isn’t warranted. Plus, you’re concerned that a lawsuit may follow the firing. In such cases, consider drafting a last-chance agreement for the employee.

Think of it as hitting the reset button. The employee benefits by keeping his or her job. You benefit because any eventual termination will be clean—and it shows a court you acted in good faith before pulling the trigger.

A last-chance agreement is often the next-to-last step (before termination) in a progressive discipline process. It is typically tied to a performance improvement plan that spells out what an underperforming or misbehaving employee must do differently in order to remain employed.

It is a legally binding contract. If the employee violates the terms, he or she will suffer the consequences.

Here is what your last-chance agreements should include:

  • The reason the last-chance agreement is warranted. What problems led up to this point in the disciplinary process?
  • The terms and conditions that must be met by the employee, including a deadline.
  • The time frame that the agreement is effective. One year is common, but they can be indefinite.
  • The consequences of failing to satisfy the terms of the agreement.
  • An acknowledgment that the employee has read and understands the agreement, which you both sign.

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