Terminating an Employee? Know the Best Practices

Terminating an employee is never easy. Whether it’s due to lack or performance or lack of company funds, it’s not a moment either party looks forward to.

Your tone and approach depends heavily on the situation. Firing an employee for performance or behavioral issues is quite different from laying off an employee due to budget cuts.

If you need to take the plunge, make sure to take these steps along the way:

Be Prepared Ahead of Time

In most cases, terminating employees is not a spur-of-the-moment decision. Prepare for the act of letting someone go by:

Try to Avoid Making It a Surprise — Ideally, you’ve delivered consistent feedback leading up to this conversation. That way, the employee is aware that he or she has been underperforming. Which leads to...

Have an Employee Review Process — A review process will help your employees know where they stand. Those that don’t meet expectations won’t be shocked when they’re let go.

Practice What You’ll Say — You don’t need to memorize a speech, but consider jotting down your talking points and doing a rehearsal beforehand. This will help you control your emotions and conduct the conversation professionally.

Choose Your Location — Choose a comfortable, private setting and book the space ahead of time. Ideally, avoid a spot where other employees can look in easily.

Gather Needed Documents

Always strive to keep clear documentation through this process, in case you need to protect yourself later. Doing so is especially applicable in the case of employees who are underperforming or exhibiting inappropriate behavior in the workplace.

Here are some documents that may be of use to you:

Employer Agreement Clauses — All employees should have signed a job offer letter upon acceptance. If you don’t have an official one, check out our offer letter template. Offer letters should include employer agreements, such as state at-will laws and non-disclosure agreements. You can use these agreements as evidence that your employee knew the terms of their employment.

Performance Documentation — Has an employee been underperforming? Before immediately firing them, you should communicate what’s lacking. Some employers use a Performance Improvement Plan (PIP) to document what the employee needs to improve upon and push them in the right direction. If all else fails, you have documentation that it was a continual problem.

Behavioral Documentation — If your employee is acting inappropriately, document what happened and when. Some behavior may be grounds for a warning, whether written or verbal. The below behavior may be grounds for immediate termination:

• Putting other employees in danger

• Disappearing without a word

• Sexually harassing other employees

• Using office equipment inappropriately

Terminate an Employee with Tact

Show tact and compassion when terminating an employee, regardless of the reason that employee is leaving. The day of the conversation, make sure to:

• Practice what you'll say

• Find a comfortable, private space to deliver the news

• Have another supervisor present

• Give the employee their termination letter

• Inform the employee of their remaining benefits, if applicable

In the end, knowing that you’ve taken the proper steps will help you rest easy and may protect your company from unwanted lawsuits.