Why Employers Must Terminate with Care
When an employee is terminated for just cause, many employers assume they won’t be held liable for unemployment benefits. But in reality, the burden often falls on the employer to prove misconduct — and when that proof is lacking or improperly documented, the employer ends up footing the bill.
📋 What Counts as “Misconduct” in Texas?
Under Texas law, “misconduct” for unemployment purposes includes:
- Violation of known, reasonable rules or policies
- Repeated unexcused absences or tardiness
- Willful disregard of the employer’s interests
- Careless behavior showing a substantial disregard for the employer’s business
But it’s not enough to allege misconduct — employers must be able to prove it with documentation and witness testimony if needed.
⚠️ The Risks of Poor Termination Practices
Many employers make the mistake of:
- Giving vague or generic termination reasons
- Failing to collect or present evidence of misconduct
- Allowing inconsistent enforcement of company policies
- Not securing signed acknowledgment of handbooks and policies
The result? The Texas Workforce Commission (TWC) may rule in favor of the employee, granting benefits and charging your account — even if the termination was for valid cause.
🛠️ Best Practices to Protect Your Business
To strengthen your defense against unjust unemployment benefit claims:
- Document Everything
Keep detailed records of infractions, warnings, performance issues, and final termination memos. - Use Signed Handbooks
Ensure every employee signs an acknowledgment of the company policies, including disciplinary rules and attendance expectations. - Be Consistent
Apply policies uniformly across the workforce. Selective enforcement undermines your credibility. - Communicate Clearly at Termination
Use precise language in termination letters and note all prior warnings or violations leading up to the decision. - Present All Evidence to the TWC
At a hearing, bring written warnings, attendance logs, witness statements, and the signed handbook. If you fail to submit key documents, you could lose by default.
💼 Don’t Pay for Their Mistakes — Call Big Dan
At The Vargas Law Office, we help employers protect their bottom line by advising on legally sound termination procedures and representing them in unemployment disputes. Don’t let a poorly handled termination cost your business.
📞 Call Big Dan today for a consultation before you let anyone go.
