6 Things to Consider Before You Fire an Employee

Firing an employee is one of the hardest responsibilities a manager faces. Telling someone their role has ended is deeply personal and emotionally taxing, especially when you consider the human elements of friendships, family situations, and employee morale.  

But firing an employee can be a critical step for the health of your team and organization. While never easy, approaching the situation with preparation and care can make the process smoother for everyone involved.  

What Does "Fire Employee" Mean? 

Firing an employee is another term for an involuntary employee termination. It is the process of ending an employee’s contract or agreement with your company.  

In the U.S., most workers are at-will employees, meaning that employers can fire them for any reason or no reason at all, barring certain legal exceptions. Employees can also quit or resign for no reason at all. 

Types of Termination 

Terminating an employee can be challenging and complex, requiring careful consideration of various factors, including labor laws, workplace policies, and the employee’s rights. Understanding the different types of termination is crucial for ensuring compliance and maintaining a positive employer-employee relationship. 

Voluntary Termination 

A voluntary termination is when an employee chooses to leave the organization (i.e. quit), often for personal reasons or better opportunities. 

Involuntary Termination 

Involuntary terminations are when an organization decides to terminate a worker (i.e. fire employee) usually due to poor performance, misconduct, or business needs. 

Mutual Termination 

Mutual terminations are when both the employee and the organization agree to end the employment contract, often amicably. Severance pay is usually included in the separation agreement. 

Constructive Termination 

This is when an employee feels forced to resign due to unbearable working conditions or other significant factors. 

While there are legal issues to be aware of for constructive terminations, this article is focused on what to consider prior to carrying out an involuntary termination meeting, i.e. firing someone. 

Prior to Firing an Employee, Do This 

No matter the situation, here are six things to consider before firing an employee. 

1. Assess the employee's violation

Was it performance-related? 

When an employee’s termination is related to poor performance, check the employee's history to ensure they have been made aware of performance issues and given opportunities to improve. If there is no documentation about the employee's performance and/or no prior warnings given, you may want to reconsider termination and start with your company's disciplinary action process. 

If you do not have a disciplinary action plan, contact your certified HR expert to help you create one. 

Was it a violation of company policy? 

Under at-will employment laws, employers have the ability to terminate employees with or without cause or notice, as long as there are no conflicting contracts or legal exceptions. Keep in mind, however, there are some violations to company rules that are so extreme they may warrant immediate termination without warning (see "Disciplinary Action or Immediate Termination"). However, anytime you fire an employee, you could face legal challenges. 

Make it a habit to always contact your certified HR professional to assess the company violation prior to terminating employment. 

2. Investigate

In many situations, there are extenuating circumstances to consider before pulling the trigger. You may discover that things did not play out the way you initially thought, and discipline or training is more appropriate than termination. 

For example, damage to company property may be due to weather, a medical condition, equipment failure, or some other extraneous variable. Immediately firing an employee for damaging company owned property without investigating the cause and/or determining the employee had ample training could lead to a wrongful termination lawsuit. 

In the event an employee alleges sexual harassment, be sure to investigate prior to terminating the accused party to ensure all parties involved are being treated fairly. A former employee could take legal action for perceived discrimination or mistreatment that led to a wrongful employee termination. 

Best practice is to avoid making snap decisions before thoroughly assessing the situation. 

3. Consider the employee's history

An employee should never be surprised when they are let go. If there was a serious violation of company policy or the employee had a series of disciplinary actions due to performance issues, they may be expecting to be fired.  

To avoid legal complications, consult with legal counsel or your certified HR expert first. They will help ensure the employee had sufficient warning, time, and capability to improve performance but simply neglected to do so. 

4. Determine if the employee is in a protected class

There are a number of laws that protect employees from decisions that are discriminatory based on gender, race, religion, age, color, national origin, pregnancy, disability, having filed a complaint, taking protected leave, and so on. Even if the employee signs something, there may be risks you are overlooking. Contact your HR expert before handing them a termination letter. 

5. Consider if the company has already set a precedent

Have there been similar situations that have occurred previously at your workplace? If so, what disciplinary action was used?  

In the event this is the first time an incident like this has happened, keep in mind that you are setting a precedent for others to follow, should a similar situation arise in the future. Be sure your actions are helping the company and not setting you up for a potential lawsuit. 

6. Do not drag it out

Dead-beat employees pull down employee morale by their lack of performance and should never be strung along. A well-thought-out firing decision may actually strengthen employee morale and let employees know that you are serious about upholding your company's policies and work ethic. Learn from Uber; waiting too long to investigate and eventually firing employees can be detrimental to your company's image. 

Preparing for the Termination Meeting 

Purpose and Attendees 

The termination meeting is a critical step in the employee termination process. Its primary purpose is to inform the employee of the decision to terminate their employment and to provide them with necessary information and support. Conduct this meeting in a private and respectful manner to maintain professionalism and empathy. 

The following attendees should be present at the termination meeting: 

• The employee being terminated. This is the individual whose employment is ending. 

• A representative from HR or management: To ensure the process is handled appropriately and to avoid any wrongful termination claims, be sure to include the direct supervisor or a member of management, along with a representative from human resources for the termination conversation. 

• A witness: If the direct supervisor or member of management is unavailable to act as a witness, invite a different supervisor or another representative from the HR team to attend for an additional layer of accountability and support. 

Preparation is key for a successful termination meeting and to avoid a wrongful termination lawsuit. Ensure all necessary documents and information are readily available. The HR representative or manager should be trained to handle the meeting professionally, ensuring the employee’s rights are respected and the organization’s interests are protected. 

Be sure to document each step and decision you make whenever you are discussing work performance with an employee.  

Should I offer severance pay to the employee being fired? 

Severance pay is typically offered to employees who are being terminated for no fault of their own as a bridge to help them take care of personal and family needs until they find a new job. In most situations, there should be no expectation for you to provide a severance agreement to an employee being fired. 

Post-Termination Procedures 

Communicating the Employee’s Exit 

After the termination meeting, it is essential to communicate the employee’s exit to other employees and relevant parties. This communication should be timely and respectful, maintaining the employee’s privacy and protecting your organization’s reputation. 

Your communication should include the following: 

A Statement Announcing the Employee’s Departure 

Briefly explain that the employee is no longer with the company. 

Information About the Employee’s Last Day of Work 

Provide details on any necessary arrangements for their departure. 

Details About the Employee’s Severance Package 

If applicable, outline what the terminated employee will receive. 

Information About the Employee’s Benefits 

Explain any next steps regarding their benefits. 

Clear, concise, and respectful communication is crucial. It ensures the employee’s dignity is maintained and the organization’s interests are protected. Additionally, update all necessary documents and information, including the employee handbook, company policies, and labor laws, to reflect the change. This helps in maintaining transparency and consistency within the organization. 

Need help with your employee termination?

For help with your specific situation, please contact your certified HR expert. Not a current Stratus HR client? Book a free consultation and our team will contact you shortly.