Termination of Underperforming Employee

[vickyp]

#79691

Forum: Community

I work for a small food production business in Toronto Ontario. One of our employees has been working at a dispatch position for several years but is just not doing well at the job especially now that we are getting busier with fewer COVID restrictions. Instead of terminating this employee without cause we have an employee who is at a lower customer service level position that could move up to the dispatch position and then this employee could move into this position where we think she will work out. I understand that this would be a voluntary thing but is it appropriate to offer her the lower level or the termination or could this be construed as constructive dismissal.

[vickyp]

#79690

Thanks for your question!

This could be construed as constructive dismissal if there is no record of progressive discipline and/or if there is a significant reduction in compensation or responsibility.
If you have been transparent and have taken every effort to coach, communicate and address any deficiencies with the employee, making an offer of a demotion instead of termination can be a good option. If you haven’t, there are risks of a constructive dismissal or wrongful termination.
One final note: the chance of a successful transition after a demotion is rare. Egos can be bruised, etc.
This webinar may help guide you.

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