In Job Termination, the Name of the Game Is Documentation
Q: I have had to terminate employees, but I’m not really sure what kind of documentation I need to protect myself legally. What do I have to do to terminate someone working for me as a subcontractor without risking a breach-of-contract suit? Can you recommend reference materials?
--Kimberly Conrad,
San Fernando Valley
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A: Any termination decision should be carefully considered to minimize potential liability. Make sure you have performance-related or legitimate business reasons for terminating an employee. If the termination is due to unsatisfactory job performance, you should have documentation of conversations or meetings during which you advised the employee that his or her performance was unsatisfactory and needed to improve.
During these meetings you should make note of the date, what was discussed, who else was present, what the employee said in terms of a commitment to improve his or her performance, the time frame agreed upon for showing improvement and the consequences for not improving. Set these details down in the form of a simple memo, discuss it with the employee and ask him or her to read and sign it, adding comments that he or she may have. This documentation should reflect that you gave the employee ample opportunity to improve.
If the job is being eliminated for financial or other business reasons, the documentation should state this reason. Make sure that you will not be hiring someone else to handle exactly the same job tasks.
For subcontractors, I recommend that you use an independent-contractor agreement before the relationship commences. Such a document should include provisions for either party to terminate the agreement. Make sure your attorney reviews it before you start using it.
The California Chamber of Commerce puts out a publication, “Independent Contractors: A Manager’s Guide and Audit Reference,” which may be useful to you. Call (800) 331-8877 to request a copy.
--Laurie Dea Owyang
President, Humanasaurus human
resources consultants, Los Angeles
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Q: I have an agreement and credit lines with two Italian shoe manufacturers who are ready to sell excellent-quality unwanted stock at a very cheap price. I want to find a major retail chain willing to buy these goods. I have samples and photographs. How do I get in contact with and interest the buyers for major retail shoe chains?
--Tayibat Alli,
Loma Linda
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A: First, you need to identify shoe retailers that carry product lines similar to the shoes you will be distributing. Shop various stores to find out what styles they carry and whether your shoes seem to fit in. Retailers want to buy shoes that will sell to the market they are serving and fit with the image they want to present to their customers.
Once you have a good idea of which retailers you want to target, you should call them and ask them for the names of the sales agents or manufacturer’s representatives with whom they deal.
At this point, you will need to decide whether you want to promote your shoes through these agents and sales reps or directly to the retailers on your own. This decision should be made based on your personal selling skills and on how widely you want to distribute your products. Then you need to create a sales and marketing plan that will outline how your shoes will best be marketed.
In sum, a little research and a good, basic marketing and sales plan will get you started on the right foot. I recommend that you participate in our entrepreneurial series, a series of 10 workshops, including two full-day strategic retreats, which will help you write that marketing and business plan with the assistance of a professional business consultant and also teach you about finances and accounting.
We are currently offering 85 free scholarships to the series for managing owners of small businesses that have been in operation for at least six months and less than five years. The businesses must be in the city of Los Angeles and have valid L.A. business licenses. To find out more, call (818) 907-9977.
--Paul O’Reilly
Valley Economic Development
Center, Van Nuys
If you have a question about how to start or operate a small business, please mail it to Karen E. Klein in care of the Los Angeles Times, 1333 S. Mayflower Ave., Suite 100, Monrovia 91016 or e-mail it to business@latimes.com. Include your name and address. The column is designed to answer questions of general interest. It should not be construed as legal advice.
