If one of your employees informs you that he or she is leaving, set up a time to discuss the matter. Follow the same procedures that you would if you were the one who was ending the relationship. Topics to discuss include why the employee is leaving, ways that the business could be improved, and information you can use to better understand the position in order to hire a replacement, if required. In addition, it’s important to find out the worker’s true reason for leaving:

• If there is a legal challenge by any party, you may need the information to prepare a defense.
• In a government investigation, you might have to compare your past record with the action in question, or compare future actions with this one.
• The information may be useful if the employee later files for unemployment benefits, and you want to contest them.

If you have high employee turnover, try to find out if there is a pattern. Turnover is costly, especially for small business owners who have to take time away from their customers to search for, hire, and train a replacement. If possible, get the worker’s reasons for leaving in writing and keep them in your permanent records.

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