One of the most challenging aspects of being an employer is making the decision to terminate an employee and then communicating the decision. During this process, it’s important to be careful about what you say and do. The following are some do’s and don’ts for handling the termination process.

Do’s

  Review the decision carefully. 

Ensure that more than one individual is involved in the termination decision and carefully examine the facts and circumstances of the situation. The decision should be job-related and supported by relevant documentation. For example, termination decisions should never be based on an employee's protected activity, such as filing a discrimination complaint or taking job-protected leave. 

If the employee's performance is the issue, consider whether you have given them a reasonable opportunity to improve. Additionally, ensure the decision is consistent with your company policies and how you have handled similar situations in the past. Consult legal counsel as needed.

 Prepare for the meeting.  

Once you have decided to terminate the employee, schedule a time and place for the termination meeting and plan to have a witness present. The witness can also take notes during the meeting to document what was said. Think carefully about what you plan to say, using the guidelines that follow. 

 Be straightforward.

Avoid small talk to start the meeting. Instead, be straightforward with the reason you are meeting, and then provide factual support for your decision. 

For instance, an employer could start by saying, “the reason for this meeting is to notify you that we are ending your employment with us, effective today, because you didn't meet performance standards for the past three quarters.” 

Allow the employee the opportunity to respond but make clear that the decision is final. Then, discuss next steps, such as assisting the employee in clearing out their workspace.

 Address final pay and benefits.

Make sure you're prepared to provide information about the employee's final pay and benefits during the termination meeting. Keep in mind that there are federal and state rules for providing final pay and certain required notices. Additionally, depending on your state, you may be required to include accrued, unused vacation and paid time off in the employee's final pay. Make sure you comply with all applicable requirements.

 Document the reason for separation.  

Document the reason for termination and the effective date and keep a record in the employee's personnel file. If the employee's termination is a result of misconduct or performance issues, make sure you keep records supporting your decision (such as past performance reviews or disciplinary notices).

Don’ts

X  Deliver the termination notice via text message.

When possible, you should inform the employee of your decision face-to-face, with a witness. There may be occasions when a face-to-face meeting isn't appropriate. In such cases, you may choose to inform the employee by telephone.

X  Terminate an employee in front of co-workers.

Terminating an employee can have a negative impact on employee morale, and doing so in front of co-workers can make it even worse. The termination meeting should be held in a private location out of earshot of co-workers.

Once the employee is terminated, let co-workers know about the employee's departure and explain who will be handling their work responsibilities in the future. Avoid disclosing the reason for the employee's departure.

X  Make misleading statements.

While you may show compassion (such as thanking them for their contributions and wishing them well), avoid saying anything false or misleading to soften the blow. For instance, don't suggest possible continued or future employment if you have no intention of rehiring the employee.

X  Argue with the terminated employee.

As mentioned above, allow the employee the opportunity to speak, and ensure that you listen to their point of view, but avoid engaging in an argument. Instead, you can emphasize the decision is final.

Conclusion

Both the decision to terminate an employee and notifying the employee of that decision must be handled with extreme care. Make sure everyone involved in the process is properly trained.