The recent changes in Government’s financial assistance policy have highlighted a need for both employers and employees to ensure that processes for the termination of employment are in place and are adhered to.The changes will mean that those employees who lose their job because of their own actions will be prevented from obtaining financial assistance for three months from the date of termination.If a former employee is unable to secure immediate alternative employment and has to resort to financial assistance, such a delay will be critical.This new policy does not affect persons who have been made redundant.Should an employee find himself faced with a potential dismissal for cause short of improving his attitude towards performance and conduct he should ensure that proper procedures are followed and proper challenges are made to the legitimacy of the potential termination.Employers should be cognisant of the hardship facing an employee terminated for cause and the probability that such an employee will seek to enforce the policies and procedures of his employer and the law.Under Bermuda law, employment can only be terminated for cause, which covers both conduct and performance.If an employee is guilty of serious misconduct (which is not defined by the legislation, but which can involve eg theft, fighting, drunkenness), then an employer can terminate the employee’s employment summarily, without notice, and without any severance payment. The conduct must be serious.Where the conduct is less serious, the employee cannot be terminated summarily, but must receive a written warning from his employer that details the conduct complained of and a clear warning that any repeated misconduct within six months of the date of the warning will result in the employee losing his job.If an employee’s performance is unsatisfactory, then the employee may receive a written notice warning him that failing to improve performance during a period of six months following the notice will result in summary termination of his employment.The notice must specify the performance complained of, and must set out what the employee has to do in order to improve performance. Often (and preferably) the employer will put in place regular meetings with the employee to monitor progress following a written warning.An employer may have internal policies and procedures to address these matters. Such policies and procedures will usually have a grievance or appeal provision that is available to an employee if he wishes to challenge the warning notice or even the termination. Employees are encouraged to pursue these remedies. It is also important from the employer’s point of view for these remedies to be available to employees.Until such time as these remedies have been exhausted, the Employment Inspector (to whom formal complaints can be made by an employee) cannot begin to investigate those complaints.In respect of both employer and employee, the following checklists may be of assistance:By the Employer:n Adhere to policies and procedures, and lawn Give proper noticen Give termination notice in proper formn Follow the grievance proceduren Undertake regular appraisalsFor the Employee:n Adhere to policies and procedures, and lawn Challenge improper noticen Follow internal appeals/grievance proceduresn Seek assistance/complain to the Employment Inspectorn Insist on regular appraisalsAdhering to these checklists is always good practice, for both employers and employees, but it is even more crucial to do so in the current climate, where jobs are in short supply and there is an increased need for financial assistance.Attorney E Kelvin Hastings-Smith, FCIArb, is Counsel and Manager of the Litigation Practice Group at Appleby. A copy of Mr Hastings-Smith’s column can be obtained on the Appleby website at www.applebyglobal.com.This column should not be used as a substitute for professional legal advice. Before proceeding with any matters discussed here, persons are advised to consult with a lawyer.