Terminating a law firm employee, whether a lawyer or staff member, is never easy. The process must be handled carefully to protect the privacy of the terminated individual, safeguard client confidentiality, maintain the firm’s reputation and preserve morale among remaining employees.
Just as bringing a new employee on board benefits from a structured process, a clear procedure is essential when an employee leaves—whether due to termination or voluntary resignation. Planning the termination process in advance can help ensure a smoother transition and reduce potential headaches, especially in cases requiring swift action.
Sometimes referred to as “offboarding,” the termination process involves more than just notifying the employee that their employment has ended. Anticipating the termination and having a plan in place can help minimize conflict and disruption.
Several factors may lead to an employee's termination, including poor performance, unethical behavior, market changes, financial struggles or poor cultural fit. Each scenario may require a different approach. For example, the firm may choose to offer outplacement services, severance packages or time for the employee to secure new employment. Alternatively, immediate termination without notice may be necessary in certain circumstances.
Regardless of the reason for termination, it’s crucial to minimize the risk of wrongful termination or discrimination claims. Even if the employee is “at-will,” maintaining clear, consistent documentation supporting the decision—such as records of billable hours, performance issues, warnings, client complaints and examples of substandard work—can help establish that the termination was based on legitimate business needs. Law firm managers should familiarize themselves with employment laws, contract provisions and fiduciary duties that may also impact the termination process.
It is crucial to review the employee’s caseload, calendar and ongoing deadlines before termination. Understanding the status of their cases and work in progress will help facilitate the reassignment of responsibilities and minimize disruption to clients.
Before the termination meeting, decide who should be present. This may include the managing partner, the employee’s supervisor and/or the HR manager. The conversation should take place in a private setting to respect the dignity of the employee and avoid public humiliation. Choose a time that minimizes disruption to the rest of the firm.
Termination conversations can be emotionally charged. Keep the discussion brief, professional and respectful. To keep the discussion focused, plan what will be said in advance, and if necessary, use a script to stay on track. Stick to the facts and avoid personal criticisms. Be clear about the reasons for termination, focusing on documented performance issues or business needs. Reinforce the employee’s continuing obligation to maintain client confidentiality.
Calculate the amounts owed to the employee in advance of the meeting, including unused vacation days, severance, unemployment benefits, and any continuation of health insurance. Provide this information during the meeting.
Ensure that the employee’s access to all firm systems, files and client data is immediately revoked. This includes email, VPN access, client portals, practice and document management programs, intranet/extranet systems and any firm-related accounts, including bank and credit card accounts. Revoking access during the termination meeting, if possible, ensures that no further unauthorized access occurs. Having a checklist of systems and assets the employee can access will streamline this process.
Keep in mind that denying a departing attorney access to their client contact list or refusing to share the whereabouts of a former colleague may violate ethics rules. Firm managers should be aware of state and local employment laws, regulations or contract provisions governing these practices to avoid potential legal issues.
Make arrangements for the return of all firm property, including laptops, phones, keys, access cards, legal files and confidential information. If the employee works remotely, coordinate the return of any equipment or materials held offsite. Appoint a firm representative to supervise this process to ensure that all property is returned securely.
Promptly return any personal items belonging to the employee and assist with their departure in a respectful manner. Ensure that the employee is removed from the payroll system and issue their final paycheck. Update employment records and adjust IT systems to reflect the change. Remove the employee from the firm’s website, social media accounts and firm directories and update all records.
After termination, monitor the employee’s email and phone systems to ensure that all communication is redirected. Set up an automatic email response, and forward phone lines as necessary.
Inform the rest of the team as soon as possible after the termination to prevent rumors and confusion. Clear, transparent communication helps avoid unnecessary speculation and reassures employees about the firm’s ability to handle the situation professionally.
Be mindful to respect the privacy of the terminated employee while addressing any concerns the remaining staff may have. Offering support and open lines of communication can help prevent a decline in morale. If necessary, consider providing counseling services or team-building activities to maintain a healthy work environment.
Reassign the departing employee's workload to other team members promptly to ensure continuity of service to clients. Consider whether temporary help or outside assistance is needed to maintain productivity during the transition.
The firm must decide how and when to communicate the termination to clients, especially when the terminated employee is a lawyer. Clients should never learn about the departure from a third party or through informal channels. Notify clients promptly to ensure that their matters continue without interruption.
A senior partner or managing partner should be the first point of contact, ideally followed by the attorney currently handling the matter. Communication should be professional, transparent and tailored to the nature of the client relationship. Depending on the circumstances, this might involve a personal phone call or a form email.
Both the departing lawyer and the firm share the ethical responsibility to maintain client confidentiality, and both have a duty to communicate the departure to any client with whom the departing lawyer had contact. Clients have the right to choose whether to stay with the firm, follow the departing lawyer, or find a new representation. In any case, both the lawyer and the firm must cooperate in transitioning client files and ensuring that client interests are maintained.
Departing attorneys are required to assist the firm in transitioning clients, which may involve updating client files, ensuring deadlines are met and addressing any outstanding billing issues. Departing attorneys must return or delete all confidential client information in their possession unless the client is departing with the attorney. In most jurisdictions, departing lawyers are allowed to retain basic client contact information for future communication or conflict checks at their new firm.
It’s crucial for both the firm and the departing employee to avoid disparaging each other during the communication process. Any message sent to clients should be factual and professional, avoiding any misleading or false statements.
Terminating the employment of a lawyer or staff member is a complex process that requires careful planning and execution. By anticipating potential issues and following a structured termination procedure, law firm managers can navigate the termination process with professionalism, respect and adherence to legal and ethical standards.
Effective communication, both internally with staff and externally with clients, plays a critical role in minimizing disruptions and maintaining the firm’s reputation. With the right preparation, law firms can handle employee terminations smoothly, preserving the integrity of client relationships, supporting the morale of remaining staff, minimizing disruption to the firm and maintaining a positive workplace culture.
