Q. I need to terminate an employee, effective immediately. Where do I start?

A. A lot of business owners are unsure of what needs to happen in order to terminate an employee. Here are the three most common questions we are asked by our clients when this business decision comes up.

1. I just discharged an employee and they are asking for their last paycheck immediately. Do I have to give it to them right now? Answer: No, not in the state of Iowa. You are, however, required to pay all wages owed to the employee by the next regularly scheduled pay cycle.
2. If I give an employee the option to resign, am I still potentially responsible for unemployment compensation? Answer: Yes. Resignation in place of termination does not guarantee removal of the employer’s unemployment obligations.
3. If I am eliminating a position and the recently terminated employee asks for a letter of separation, am I obligated to write one? Answer: While there is no requirement to write a letter of separation, you can supply one for an employee at your discretion. We recommend you do not write a letter of separation if the reason for the discharge was due to “difficult situations.”

Make sure you contact a human resources professional and/or legal counsel before making any termination decisions, if possible.