How to Terminate an Employee

The termination of employees requires careful consideration of business and legal issues. Planning for termination decisions helps employers justify their decision and defend against potential litigation.

How do you know when it's time to fire someone? The right time to terminate someone will depend, but should always come after establishing legitimate legal reasons for termination and assessing potential legal risk. It helps if performance and disciplinary issues have already been documented fully and objectively, where possible.

Who do you need to tell before you fire someone? Generally, as soon as you think that employee termination may be necessary, it’s helpful to have at least a brief chat with your lawyer, who will be able to walk you through additional considerations, such as best practices for delivering the termination message, protecting sensitive company information, avoiding the potential for workplace violence, and dealing with any employee morale or public relations issues that may arise.

What's the best way to conduct the conversation? Time the decision to allow for privacy, ideally before or after the normal work days in a private location where there will be few interruptions and out of view of others in the office. If possible, have a witness join you. Prepare and potentially rehearse the termination message, being as direct as possible and avoiding arguments. Make sure that you deliver the necessary points without making excuses or minimizing the reason for the termination, but without getting into personal attacks or derogatory generalizations or personal statements that might be inconsistent with the termination message (i.e., “I would not have fired you if it were up to me” or “This is not my decision”). Answer questions as honestly and as fully as possible. Be prepared for a negative response.

What advice do you have for someone that has to fire an employee? Be sensitive. Being terminated is a difficult and emotional time, and by being fair and professional, you can minimize the chances of a lawsuit, or support your position that you acted in a lawful, fair, and reasonable manner.