Hi, Judy, Thank you for the additional information,
You can terminate the employee, but you should take some precautions so that you are not accused of discriminating against the employee because of having a baby. It would be the same precautions an employer would take if they were terminating an employee who returned after taking unpaid leave under the Family and Medical Leave Act ("FMLA").
In order to protect yourself, you should notify the employee in writing and say something like the following,
" that she has not been completing her assignments on time, nor have the assignments been done correctly all of which have cost the company a substantial amount of money. When this 'work at home' arrangement was made, it was with the understanding that all deadlines would be met and that all assignments would be up to the well established company standards. Unfortunately, she has not met the deadlines and standards and that you, reluctantly, must terminate her employment with the company.........etc."
By citing specific reasons for terminating the employee, you are protecting yourself and the company from any accusations that the termination was based on any type of discrimination. By the same token, by citing these reasons for termination, you are stating that the termination was for "cause" which would prevent this employee from receiving unemployment compensation benefits. If you wanted this employee to receive unemployment compensation benefits, your letter to her would state that her position was being "phased out". This would not be for "cause", thereby making her eligible to receive unemployment compensation benefits,
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