I am the HR Supervisor at a small NJ based company with an at-will policy, but am new to HR and need some guidance.

We have to lay off/terminate the employment of an employee in NJ due laid to budget cuts or a lack of work. On top of that this employee has a well reported track record of always being late and a mediocre performance appraisal so I assume we can also terminate for cause.

My question is about the termination procedure. What is the right thing to do and are there other issues we should be aware of? Thanks for any help

Technically, a layoff means that the employee is subject to recall. It is frequently misused because so many people interprete being fired, or even being terminated, with misconduct.

Correct usage: Loss of job is intended to be temporary and employee may reasonably expect to be recalled - layoff

Loss of job is intended to be permanent and employee has no reasonable expectation of being recalled - fired. Fired is NOT a synonym for "bad employee" despite what many people think. But the fact remains that if you're the most excellent employee in the world, you walk on water, you have skills up the ying-yang, you have a spotless record without so much as a one-minute tardy, but your employer is having business difficulties and can't afford to keep you on and there's no reasonable expectation that he will ever be able to return you to work, face it, you've been fired.

Employee no longer works for the company no matter what the reason - termination. There are involuntary termination and voluntary terminations. If you quit, that's a voluntary termination. If your employer instigates the end of employment, no matter what the reason, that's an involuntary termination.

Call it what you will; I'm not naive enough to think that I can do away with the stigma of the word fired by way of semantics lectures. :) If calling it a termination will make it go down easier, then by all means call it a termination. But unless you honestly can say that he might be called back to work, it really isn't a layoff.

Okay, lecture over. While not required by law, I generally always have a letter ready spelling out what's just been discussed; explaining the reasons for the termination (you can use the business reason if you're not comfortable with the for-cause, or you can use both); when it is effective, what his COBRA rights are (or when he can expect to receive information on COBRA rights); how to apply for unemployment (required by law in my state - check with your UI board in yours); rolling over the 401k, all that stuff. In my state it's also required that we provide the last paycheck on the last day of work so I have that handy; I'm not where I can see if that's required in yours. I have the forms for all the benefits (COBRA, 401k, life insurance conversion if applicable) ready to go in one packet, and if we are providing outsource job-find assistance, I have the paperwork for that too.

Are you okay with actually breaking the news? I can give tips for that as well if need be.

any help is always welcome. It will be hard to break the news but it needs to be done.

Termination is a little easier on the vocal cords for me..I'll won't use the term lay off and will stick to the business reason.. I read up on NJ and found the following:

Pursuant to New Jersey law (N.J.S.A. 17B:27A-27), small employers must offer employees the option to continue their group health coverage when an employee is terminated, goes to part-time status, or ends employment. The employer may require the employee to pay for this coverage in an amount not to exceed 102% of premium. Employers with 20 or more employees (except for the Federal government and certain church-related organizations) must offer continuation of coverage under federal law, commonly referred to as "COBRA," which contains provisions which differ from those described below. State continuation of coverage is available to employees of small employers who are not subject to COBRA.Under State continuation of coverage, a terminated employee or one on part-time status has the right to continue coverage for up to 12 months. New Jersey small employers have an obligation under State law to notify their employees of the right to continue coverage at the time of termination or at the time the employee assumes part-time status.

Since we have less than 20 people, I will offer the continuation of health coverage at the full rate (no company contribution) for 12 months.

Have not been able to find out if I have to explain how to apply for unemployment but figure that mentioning it in the termination letter will take care of that.

We don't offer 401k, life insurance etc. so I guess that is one less hassle.. Any help you can give me on breaking the news is always appreciated.
thanks

I know I made the offer, but I want to consider it for a bit before I respond. Back with you later.

thank you.. Take your time... anything is appreciated.