What to Say When Terminating a Contractor

(Quick note: The information in this article is not legal advice. ALWAYS check with your legal team before terminating an employee contract.) Another possibility when working with a freelancer is that you simply don`t feel like they`re the best fit for your business. This could have a handful of reasons, including: If you find that your independent contractor is not complying with the terms of the contract, it is much easier to end that relationship than with an employee. There is no reason to worry about unemployment claims or severance benefits. And complying with your contract can also protect you from lawsuits. Most independent contractors rely on their professional reputation and will make reasonable adjustments. Remember that you don`t have the right to dictate how a contractor does their job, only that they do it. “Oh my God,” says Bob Tankel, director of Robert L. Tankel PA in Dunedin, Florida, a law firm that advises associations when asked if he`s seen boards enter legal chaos for not properly firing a contractor. “What usually happens is that due to changes to the board over the years, there is no main list of association agreements and their expiry date. Too often, the board of directors will decide to fire a contractor if they do not have the legal right to do so. The contract stipulates that the association must terminate within a certain period of time and that the board of directors attempts to terminate outside this period.

And remember, if you`re never sure what should or shouldn`t be included in a termination letter, always ask a qualified lawyer. Once you`re past the start-up phase, staffing needs may increase and you may need to rethink hiring freelancers. You may prefer to hire a full-time employee rather than keep a freelancer on the side. Alternatively, you can renegotiate terms such as lower rates so that your deal better meets your needs, rather than terminating the contract with your freelancer altogether. The formal way to terminate a contract is with a contract termination letter. Write a contract termination letter even if you communicate the termination by other means, for example. B through a meeting or phone call. Write the letter in a standard corporate format. Indicate the date of termination of the contract, the reason why you are terminating the contract and the reason why it is legal for you to terminate the contract. If you`ve had a positive experience with the company or person you`re terminating the contract with, say so in the letter, but beyond that, stick to the facts. Here are some financial reasons why you need to end your relationship with your contractor: Never use language with an independent contractor that is more suitable for an employee – for example, don`t say “you`re fired” or “your performance doesn`t live up to expectations.” As a rule, entrepreneurs have a lot of leeway in the way they work as long as they deliver the agreed product or service.

Many of our firm`s clients use independent contractors. When the relationship between independent contractors is no longer satisfactory or the reason for the relationship no longer exists, clients often wonder how to properly end the relationship. To stay on the right side of the law, just follow your contract conscientiously. If the independent contractor does nothing that would justify a dismissal, you need to do what you need to do when managing a relationship between two professionals: have a conversation from one businessman to another. Most entrepreneurs agree that it`s not easy to find and retain the best talent. One solution to this problem is the philosophy of “slowly, fast fire.” If an employee is not suitable, you will know as soon as possible. Bad workers or workers who simply don`t fit in well can hurt your business financially and strain the rest of your employees. Even jokes that this person may have found funny won`t get the reaction you`re looking for when they wonder where their next paycheck will come from. Don`ts: Have the conversation alone. Invite a second party to have a witness to what was said in case the instructor filed a lawsuit.

Kathi Elster, executive coach and co-author of Mean Girls at Work, Working with You is Killing Me and Working for You Isn`t Working for Me, recommends that you decide when the end day of work will be and when the end date of payment will be. “Usually, it`s best to give a little more money to soften the blow,” Elster says. Regardless of the type of termination letter you write, there is some important information that should always be included: Gather clear and irrefutable evidence that the contractor has not complied with one or more specific provisions of the employment agreement. .

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