Can someone point me to the law that states we are not permitted to terminate an employee due to a bankruptcy. My Pres wants to terminate based upon this and I need something to cite.

Do a search on the words "bankruptcy" and "employment". I think the best thread is the one "Bankruptcy and Current Employment". It should tell you just about everything you need to know. Expand the scope of your search to posts newer than 1 year. I believe it was in the Human Resource forum. Great material.

People file for "protection" under the Bankruptcy laws. Go to http://www.hrhero.com/q&a/071103-bankrupt.shtml for a discussion on why this should not be the sole reason for termination of an employee. However, it does not mean that you can't put up some "fire walls" to protect the bank.

The ability to file for protection is a constitutional right. Does your bank feel it is correct to fire a person for executing their rights? I was always told the employee could still be bonded.

I would tread lightly here. Where does it say bankruptcy is a just reason to fire someone?

Other things that lead to the bankruptcy may cause this. But find out what happened before taking these steps.

Sounds like kickin' them while they're down. If they are filing bankruptcy, then they REALLY need their job!

We had an employee file BK - extenuating circumstances lead to it (driving the freeway, someone lost a couch, they plowed into it and it came into the car. Everyone was hurt) We didn't terminate the employee but did have internal audit monitor their financial activities associated with their position - Branch Manager for about 6 months. Everything worked out fine. Check out the circumstances first before leaping.