You may think it won't happen to you. Employees don't sue happy, worker-friendly companies like yours. Employee lawsuits happen in companies with bad bosses, poor working conditions, and hostile environments. Right?

Wrong. Employee lawsuits can and do happen anywhere. According to Department of Labor statistics, in 2011 alone, disgruntled employees filed 23,465 age discrimination complaints, 30,512 in the harassment category and 37,334 complaints of employer retaliation. Our society is becoming increasingly litigious, and the workplace is a prime focus.

If you look at some of the reasons employees sue the companies where they used to work, you may feel like you are entering a minefield of spurious claims and scattershot complaints. You need protection.

But if you think you can protect yourself and your company from complaints and lawsuits simply by providing a thorough write-up to go along with each termination, you are starting way too late in the game. Bulletproof HR documentation requires a paper trail that starts much, much earlier--before you even hire. Here are some of the steps required for a solid employee documentation process:

1. Job description. It can be tough to convince a judge that an employee failed to live up to expectations if those expectations were not carefully defined in the first place. The job description is a central document in any employer/employee relationship, and one that should be shared prior to hiring and revisited at each performance review. If the job description changes, the change must be documented and agreed to by both employer and employee.


2. Job application. A well-crafted job application will eliminate unnecessary information that may appear on a resume, such as date of college graduation (i.e., age) or religious affiliation. It provides a vehicle for all applicants to compete on a level playing field and offers a baseline for discrimination-free hiring.


3. Offer letter.A clear offer letter outlines the terms of employment and does not make promises that could lead to false expectations or disagreements.


4. Employee handbook. This probably should go without saying, but we'll say it anyway: company HR policies should be spelled out in writing--use a consultant experienced in employment law to help create or review the manual--and managers and employees alike should receive an employee handbook when they start. Have everyone sign off on their receipt and acceptance of baseline employment policies.


5. Follow the law. Acts as simple as posting government-required documents can make a difference. Make sure you know what is required, and do it.


6. Create and maintain a good filing system. Employee personnel, medical and confidential records must be stored separately, to ensure the wrong manager or employee does not gain access to privileged information. No need to create a medical or confidential file for each employee, but when the occasion arises, that information should not be placed into the main personnel file. Designate a secure place for storing sensitive information.


7. Document retention policy. What HR documents do you need to keep? What files, paper OR digital, should be discarded on a regular basis? Old emails and other digital records can help or hurt the company. Deleting them on a schedule might be a good idea. But there must be a written policy--and the company must stick to it.


8. Performance reviews. If an employee is not living up to expectations, the annual or bi-annual performance review is your main opportunity to document this failure. Remember, the performance review is where you can--and must--inform an employee of what he or she is doing wrong, and warn of the consequences if performance or behavior does not improve. Be specific--and be sure that you are describing a behavior, and not a personality. Make sure you take notes to document the meeting, and include an account of the employee's responses. A negative performance review should lead to an...


9. Action plan. Remember, it's not enough to tell an employee what he or she is doing wrong. Work together to formulate a plan for improvement, with a clear time frame. Put it in writing. Have both parties sign it. Then, be sure to revisit it together at the planned dates.


10. Terminate compassionately. If you have done your work well, then in the unfortunate situation where termination becomes a necessity, it will not be a surprise to the employee. Bear in mind, though, that termination is always unpleasant for the person being terminated, and a calm and compassionate attitude might ease the moment--and steer the employee in the positive direction of finding new employment that is a better fit, rather than seeking retribution through legal action. Consider offering a severance package--and if the employee accepts, require him or her to sign a waiver or release as a condition of acceptance.