Ending an employment relationship: what employers should know

Most labor lawsuits that companies lose are not lost on the merits, but because of procedural mistakes when ending the relationship.

Termination for cause

If there is a cause provided by the Federal Labor Law, the employer must deliver a written notice that clearly states the conduct and the date it occurred. Without that notice, the dismissal is presumed unjustified.

Termination without cause

When there is no cause, the recommended route is to negotiate the termination and pay what the law requires, formalizing the settlement to give both parties certainty.

The conciliation stage

Before reaching a court, the parties must attend pre-trial conciliation. Arriving well prepared at that hearing is the best opportunity to close the matter at a reasonable cost.