After college and before law school, my first job was as a mid-level manager at a company with a crazy high rate of turnover. It was the organizational culture, there; employees were in and out the door constantly because of high performance expectations. This meant that as a brand new, 22-year-old manager I was involved in firing people within six months of my tenure at the company.

As you can imagine, it was not a fun job. As you can also imagine, it taught me a couple things about the number-one worst aspect of being an employer: letting people go. First, there’s no great way to do it. There’s just no way to come out of it best friends and with everything water under the bridge — at least not right away. Second, on the other hand, most people do understand that you’re just doing your job.

If you’re an owner or nonprofit director right now, and you’re thinking about laying people off, you’re not alone. Maybe it’s your first time going through it, or maybe you just haven’t done it in a while. Here are some general guidelines — legal and practical — to help you navigate this downer of a situation.

Don’t try to soften the blow.

You’re going to feel awful about doing this. That’s a given. But believe it or not, it doesn’t actually help the person you’re terminating to seem wavering and regretful about your decision. What that person really needs is closure, and you seeming torn up about the whole situation leaves them feeling like maybe there could have been another way. A clean, decisive break is best for both parties. 

So get to the point. Be straightforward and honest. Lay out valid business reasons for the decision, clearly describe next steps (regarding timeline, health insurance, etc.), and thank the person for the value they’ve added to the organization.

Use objective standards — and document them.

This is the biggest legal point. Make sure you document the business need for layoff and establish clear and objective criteria for which team members are being let go. This can be in the form of a memo or a board resolution. The documents should clearly state (1) your business reasons why layoffs are necessary; and (2) the objective, business-related standard you’re using to determine who gets laid off. If a disproportionate number of members of a protected class will be laid off, consider making adjustments to your criteria to avoid that result. (Protected classes include age, race, color, religion, sex and national origin.)

Protect yourself from law suits.

Terminated employees could potentially sue for discrimination, harassment, or retaliation. While using clear and objective criteria for selection, as described above, can help, it can’t totally eliminate that risk. Consider asking employees to sign a waiver of claims when they leave to add another layer of protection. This is a document that essentially says the party gives up their right to sue you for anything related to the job or the termination. However, you must offer something in return to make the waiver enforceable — usually a severance package of some kind.

Clean up the mess.

It won’t surprise you to know that layoffs hurt morale. If you still have team members left after the layoffs, make a point to let them know what the plan is moving forward. I recommend small meetings, one-on-ones if possible. It usually makes for a more open conversation. For a while, steer clear of team-building events that could come across as insincere or insensitive, such as group outings (once quarantine is over) and “mandatory fun days.” Instead, consider giving your remaining team an afternoon off, offer more flexible hours, or make a point to invest in their personal career goals by giving them projects that align with skills they’re looking to build. It’s not that these things will suddenly make everything better, but they’re real steps that back up your assurances that you’re invested in your team.

Note that this is not legal advice tailored to your situation, and reading this article does not make you a client of Promise Legal Engage. Please consult an attorney for guidance on specific issues.