Firing an employee is one of the most challenging aspects of being an employer. However, there are a variety of ways to make the conversation go more smoothly and preserve respect between the employer and employee. This guide on how to fire an employee will cover the basics of why to fire an employee, how to prepare for the termination, and what language to use to tell someone they are being fired.

Firing An Employee – The Basics

Firing someone almost always has a ripple effect on the company, so ensuring you know the right way to fire an employee is critical for the health of your organization.

If you are reading this article, it is likely because you and your team are contemplating firing someone. What is holding you back? Is it guilt or uncertainty? Consider some of the most common reasons why employers choose to fire a team member, below.

Reasons To Fire Someone

1. Layoffs – If your company is making labor cuts or downsizing, you may need to make layoffs. First, you will want to terminate employees all around the same time. Staggering the layoffs will leave employees extremely uneasy.
2. Performance – Poor performance can show up in various ways: missing deadlines, turning in incomplete work, or failure to complete the responsibilities of the job. Of course, a manager should allow room for growth, but if the performance does not improve, termination should be considered.
3. Misconduct – One of the most serious reasons to fire an employee is for misconduct, which includes stealing, lying, violating a company policy, workplace harassment, drug or alcohol abuse at work, and more.
4. Misuse of company property – When a company allows an employee to use their property, whether it is a laptop, vehicle, credit card, or software, the employee is expected to only use it for business purposes, unless specified otherwise. For example, if an employee is given a laptop to perform their job, the policy might state that the computer cannot be used for personal activities like social media.
5. Social media posts – Sadly, nothing on the internet is private anymore. Many employers have their employees sign a contract upon being hired that states they will not post anything that could be damaging or inappropriate to the company on social media. In fact, 17% of employees have fired someone for something they have posted on social media, according to CareerBuilder.

Can You Fire Someone Without a Warning?

Employment and termination laws vary by state, but many jurisdictions practice something called at-will employment. This allows both employees and employers to terminate a contract at any time, for any reason. This allows employers and employees to move on from one another if it is not a good fit. If there is an At-Will clause in a contract, the employer is not required to provide a warning to the employee before terminating their contract, just as the employee is not required to give notice before quitting.

That being said, before firing an employee, it is a good idea to first share with them that they are not meeting expectations for their role. Be prepared, be professional, and be clear with your words. Then, the employer and employee can come up with a roadmap to improve performance, which is often called a Progress Improvement Plan (PIP).

Progress Improvement Plan and Employee Termination

The purpose of a PIP is to provide thorough, clear communication to the employee so they know where they are falling short and how they can improve. This offers them a chance to work through any issues they may be experiencing before consequences become more severe.

It is best to start with a warning, typically a verbal one followed by a written one. The PIP should then outline the steps to improve performance, as well as weekly, monthly, or quarterly check-ins to touch base on progress.

To help stop any issues before they arise, have every new hire read the handbook that outlines the policies and make them sign it to confirm they have read it, understand it, and intend to follow it. This way, if an employee breaks a written policy, you can refer back to it in the PIP or during termination. Policies outlined in the handbook address common behavioral problems like absences and misconduct.

A PIP is not always necessary if the company is certain that the employee in question is not right for the role and consistently underperforms. This kind of thing can happen more frequently when there is a desperate need for help. Firing an employee who should have never had the job, to begin with, is difficult, and the employer should take some responsibility for misplacing them.

Breaking a Contract When Terminating an Employee

Employment contracts can feel like a blessing and a curse. If there is not an at-will clause in a contract, there is typically a section that details the terms of employment, like the time frame the worker must stay in their role. This section will also discuss when and how a worker can be terminated, which is extremely important for employers to abide by. Many contracts state that if a team member breaks certain policies, they can be terminated prior to the contract’s end date. If a worker does not break the terms laid out in their contract, however, they cannot be let go before they have worked for the amount of time stated in the agreement. Doing so can lead to a wrongful termination lawsuit, which can be more costly and stressful than waiting for the contract to expire.

Prepping for a Termination Meeting

If your team has decided to let go of an employee, you will need to prepare for and schedule a termination meeting. This meeting should take place in a private room where you work. f there is no way of meeting in person, a video call should be the last resort. Regardless, the meeting needs to be face-to-face.

Send a meeting invite in the same format you would typically do so, whether that is through an email or Google Calendar invite. Keep the meeting title simple, like “John and Mark Meet-Up.” It is a good idea to send the invite close to the time of the meeting so the worker does not get overly anxious about it first.

So, who should be the person to deliver the news? Experts say a direct manager or supervisor – someone who has worked closely with the individual and knows them on a personal level – should be the one to notify them about the termination. Along with the manager, it is recommended to have a human resources representative, another trustworthy employee, or your business’ lawyer in the meeting with you and the employee. From a legal standpoint, they will serve as a witness in a lawsuit if the termination escalates after-the-fact. No one expects a former employee to file suit against them, but it can happen, so you need to protect yourself and your company.

How Do You Tell an Employee They are Terminated?

Once you have notified the employee that you want to have a meeting with them in your office or conference room, they will likely have an idea something is going on.

There is no exact science to what you should say when terminating employees. Some employers try to soften the blow by emphasizing the strengths of the employee, others may simply explain the reason for termination and end the conversation there. Regardless, just be direct, professional, and honest. Tell them exactly what you want to discuss, whether it is their performance, a broken policy, or a behavior problem. Explain what the team member did, whether it has been a pattern or a single instance, and that the team has decided to let them go.

Be prepared for anything when you go to fire an employee. The employee may take the news well and thank you for all the company has done for them if there is mutual respect. However, not all employees will take kindly to the news. It is common for an employee to get emotional, whether that is sad, shocked, anxious, or angry. While the employee’s behaviors are their responsibility, it is important for employers to show a level of empathy and compassion toward the terminated employee.

What Happens After An Employee is Fired?

After the termination meeting, you will need to notify other employees about the termination. Inevitably, some workers may feel a sense of loss or disappointment over the termination. Some employees will wonder am I next? or how will this impact my workload? Both are fair questions and should be addressed head-on before any rumors get started. You could encourage them not to speak poorly of the person or spend working hours discussing it. Or maybe it is best for your culture to have an open-ended conversation about it. The specific dynamics of your work environment should guide your thinking throughout this process.

Reassure your employees that their jobs are not at risk if you are not planning to fire anyone else. If you need team members to temporarily take over the responsibilities of the terminated employee, clearly communicate your expectations. It can be difficult to navigate work-life immediately following a firing, but things will go back to business as usual fairly quickly.

 

To learn more about employment and labor law, check out our guide to How To Sue For Wrongful Termination.