
One of the most important management tools we have is the performance appraisal, it is also one that can be misused the most.
Many wrongful termination lawsuits are won or lost based upon the documentation of a performance appraisal. One thing you should never include in an appraisal are phrases like "as long as you do great work, you'll have a job." This is considered an "implied contract" and could not only lead to lawsuits, but lead to lawsuit losses if the employee is terminated.
Another thing to keep in mind is that things must be documented, but not excessively. Excessive documentation can backfire to the point of being able to be interpreted in any way plus possibly making it look like its only purpose was for the terminating of the employee.
Be honest and forthright in your appraisals, but don't overdue it and you should be fine.
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