In brief: Final authority for a termination decision rests with the employee's manager, not the HR professional. Managers identify performance issues first and are accountable for team performance, but should not decide in isolation and must understand legal requirements and organisational policy. HR provides objectivity and expertise in procedure, compliance and ethics to minimise risks such as unfair dismissal claims, and the manager should be present and preferably lead the termination meeting.
Employee termination is a sensitive and complex decision that can significantly impact the organisation. A key question arises: who is ultimately responsible for making this decision, a manager or a human resources (HR) professional? The answer lies in a collaborative approach that leverages both perspectives.
The Manager’s Role
Managers are often the first to recognise performance issues within their teams. Their daily involvement with employees gives them unique insights into individual behaviours, team dynamics, and the impact of an employee’s performance on the team and business. As they are directly responsible for team performance and achieving business goals, managers are essential in not only trying to correct performance issues but also identifying when a termination may be the necessary course of action.
Ultimately, while termination decisions may be made in consultation with HR, the final authority lies with the manager. This ensures that the decision aligns with the specific needs of the team and business. However, managers should not make these decisions in isolation and must ensure they fully understand legal requirements and organisational policies.
The HR Professional’s Role
HR professionals bring objectivity and expertise in good employee practices, company policy, legal compliance, and ethical standards. Their role is to ensure that any termination process is fair, balanced, lawful, and consistent with company values. HR professionals provide crucial guidance, helping managers navigate procedural requirements and minimise potential risks such as unfair dismissal claims or workplace disputes (Stone, 2017).
A Collaborative Approach
The best termination decisions are made through collaboration and when there has been ample opportunity for a proper evaluation. Managers should take the lead by identifying issues and initiating discussions, while HR assists evaluate the situation, ensuring all actions align with legal and organisational guidelines. While HR may be actively involved in the process and provide valuable advice, the ultimate decision to terminate still rests with the manager. The manager must also be present and preferably lead the termination decision. HR should not act in isolation.
So while HR’s expertise is vital to ensure fairness and compliance, the final decision making power on employee terminations lies with the employee’s manager.
Linq HR provides fractional employee relations support to Australian employers and operates Workforce Directory, Australia’s HR services marketplace. Ph 1300 234 566.
Further reading:Fair Dismissal: Why the Right to Respond Matters and When You Need an External Workplace Investigator.
References
Stone, R. J. (2017) Human Resource Management. 9th ed. Milton, Qld: John Wiley & Sons Australia.
