This article outlines how to terminate or fire an employee and includes a short script that outlines exactly what to say.
Having to fire or lay off an employee is one of the most difficult tasks a manager or business owner has to undertake. However, it is an inevitable part of running a company. Knowing how to legally and professionally terminate an employee is crucial to protecting your business and avoiding potential lawsuits. Follow these best practices when letting staff members go.
Don’t Terminate on a Whim
You should never fire someone on a whim or in a fit of anger. Termination is a serious action that requires planning and forethought. If an employee has violated policy or performed poorly there should be documentation to back up your decision such as
- Written warnings for poor performance
- Details of policy violations
- Attendance issues
- Proof of misconduct
Without proper documentation, you risk accusations of unfair termination.
Consult Your Employee Handbook
Review your company’s employee handbook and speak with HR before terminating anyone. Make sure you fully understand the policies around firing and laying off employees. Some key things to check are:
- If you need approval from HR or upper management before terminating
- Rules around severance pay
- Final paycheck laws in your state
- Protocols for collecting company property
Following proper protocols protects the company and the employee,
Schedule a Private Termination Meeting
Never fire someone publicly in front of coworkers or via email/text. Instead, schedule a private in-person meeting, even if they work remotely. The meeting should include:
- The employee
- Their direct manager
- An HR representative
Tell the employee the purpose of the meeting directly but compassionately. Avoid sugarcoating your decision.
Have Paperwork in Order
These documents should be prepared for the termination meeting
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Termination letter – Outlines reasons for firing and effective date. Keep the language brief and neutral.
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Severance agreement – If you plan to offer severance pay, the terms should be put in writing. Often severance is conditional upon signing a release of claims.
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Final paycheck – Give details like when they can expect their last direct deposit or when you will mail their check.
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COBRA information – If they had company health insurance, provide info to continue coverage.
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Company property return – Have them turn in keys, ID badges, laptops, etc.
Keep the Meeting Brief
The meeting should not turn into a lengthy debate. Stick to the agenda:
- Inform the employee they are terminated
- Provide rationale if they were fired for cause
- Review paperwork like COBRA rights and severance terms
- Collect company property
- Allow them to clean out their desk/workstation discreetly
Answer any brief questions but avoid getting confrontational or emotional.
Don’t Debate Your Decision
When employees are fired, they may become emotional and try to negotiate to get their job back. Avoid debating or rehashing the choice to terminate, as that decision is final.
Simply reiterate that you are terminating their employment effective immediately. Refrain from apologizing excessively or blaming yourself, as that undermines the firmness of your decision.
Escort Them Out Professionally
After the termination meeting ends, have someone escort them discretely to collect their belongings and then out of the building. Depending on the circumstances, you may permit a neutral employment reference or letter of recommendation to ease their transition.
Remain composed and take the high road. Avoid having security escort them out publicly unless you truly feel they pose a safety risk.
Don’t Go Silent
Inform staff of the termination on a need-to-know basis. Be prepared to answer questions and provide reassurance. Silence can breed rumors among remaining staff.
For most terminations, a simple “John’s employment has ended” suffices. For layoffs of multiple people, be more transparent about the business reasons behind the downsizing. Honesty prevents speculation.
Review Termination Policies
After any termination, it’s wise for the management team and HR to meet and review whether policies and procedures were followed properly.
Look for any way the termination process could have been handled better. Also discuss if policies should be amended to prevent a similar situation arising again.
Consult Legal Counsel
In certain high-risk termination cases, it is prudent to first consult an attorney experienced in employment law. They can review documentation and provide guidance to mitigate legal risks.
Seeking legal advice is particularly important before firing employees in a protected class like pregnant women, minorities or those with disabilities.
Don’t Make Exceptions
Once you’ve decided termination is necessary, stick firmly to that decision. Making exceptions because the employee pleads, cries or makes threats sets a bad precedent.
It shows other staff that behavior, not rules, influences employment decisions. Plus if you make false promises to get the employee to leave quietly, it can come back to haunt you legally.
Consider Eligibility for Rehire
Some companies have policies where employees fired for minor misconduct like tardiness may be listed as eligible for rehire. This can ease their job search.
However, understand the legal risks in case you terminate them again in the future. Consult an attorney before designating eligibility for rehire after any termination.
Avoid Retaliation
Never take action against former employees for complaints they may make about their termination. Retaliating through threats, harassment or lawsuits may result in severe penalties under employment laws.
Any response to their allegations should go through proper legal channels only. Resist the urge to react spitefully to a disgruntled former employee.
Provide References Carefully
Be cautious providing references for former employees you have fired. Have a policy where only HR provides neutral references like dates of employment and title.
Negative references from a resentful boss can spur lawsuits. Yet falsely glowing references simply to avoid conflict can also backfire on your company.
Terminating employees is challenging but often unavoidable. Follow these best practices to let staff members go legally and professionally. Though employment may cease, both parties can preserve dignity and goodwill.
Similar definitions you must know:
COBRA
Severance
Wrongful termination
Final paycheck
Employee handbook
People also ask:
What paperwork do I need when firing someone?
What should you not say when terminating an employee?
Can I terminate an employee without warning?
Sample script: Termination at-will
“James, today will be your last day at XYZ Company. We’re severing your employment at-will. Here is your COBRA notification. It outlines your ability to continue any healthcare benefits you have (if applicable). Please take a moment to read through it. Next we’ll need you to surrender any company property or equipment. If you have any questions later, please feel free to contact me.
What not to say in a termination meeting
As with all difficult employee interactions, the setting should be private and your tone should be professional and courteous. Avoid small talk — this isn’t a social call.
Avoid apologizing, assuming blame, or making the meeting about yourself. Comments like “This is really hard for me” not only provides no comfort to the employee, but implies the situation is as bad for you as it is for them.
Don’t discuss — direct. The topic is not open for discussion. The organization has made the decision — it’s not negotiable.
Occasionally employees will promise to do better or offer alternatives to losing their job. Don’t let an employee humiliate themselves when there is no chance they’ll keep their job. Let them know your decision is final and move on with the rest of the meeting.
Don’t discuss personalities or make comparisons. Avoid any discussion that touches on an individual’s character or qualities.
If the employee is being separated for cause, keep the discussion to the poor performance issue or policy infraction. Don’t compare their work or actions to the work of others: compare it to the rules and standards set for all employees.
“I’m sorry” is only appropriate if the company is laying off employees or downsizing. If you’re letting the employee go for reasons the business or employee couldn’t control feel free to sympathize briefly.
Terminating Employees with Grace- HR Minute
How do you terminate an employee without a reason?
Simply name the violation as the reason for dismissal and include the effective date. In some cases the employee is terminated without cause. This is an at-will termination. Unless there are employment laws governing employee terminations where you do business, most employers are free to dismiss staff without reason.
What should I do if my employee is terminated?
If the termination comes as a result of internal, org changes, have a discussion with them and see whether they’re interested in another role within the company or, if that’s not possible, give them some notice so that they could start searching for a new job before leaving from yours.
What should a terminated employee know about a termination policy?
The terminated employee should understand the policy that’s being cited: their termination should not come as a surprise. The process of firing a team member is a difficult conversation but you can conduct termination meetings quickly and professionally if you plan ahead.
How do I prepare for Employee Termination?
Preparing for employee termination is a critical process that demands a strategic approach. Here’s a basic step-by-step guide to help you through: Documentation forms the backbone of a compliant termination process. Before initiating any termination conversation, ensure you have a comprehensive record of relevant facts.
