Terminating an employee can be awkward, unpleasant and sometimes, scandalous. No one enjoys this process, even if the employee has been a royal pain.   Unfortunately, knowing how to fire an employee is crucial to a business’ success, and possibly it’s survival.  

To minimize legal complications and to ensure that the process goes smoothly, I suggest you go through this list of five no-no’s when it comes to terminating employees.  Note/Disclaimer:  I am not an attorney or a Human Resource expert.  The information below is meant as a guide.  Consult HR or legal council before terminating anyone.  

1.     Not Having a Signed Offer Letter or Employment Agreement

Having an agreement that states the nature and terms of employment is important, more so is the part where the employee’s signature is affixed to confirm that he understands that he may be terminated if he doesn’t follow the provisions of his contract.

Firing an employee without a signed letter of agreement may be inviting trouble or a lawsuit. To protect your company, make sure every employee has a signed letter of employment.

Better yet, make sure that this letter clearly states the possible grounds for employment, such as breach of confidentiality agreement, poor performance, absenteeism, fraud, integrity issues, misuse of company resources, and other issues that may be detrimental to your company.

2.     Not Having Proof, Like Proper Appraisal Documentation

It is always important to have proof of your employees’ performance, whether good or bad.

This is especially important for employees who are about to get terminated due to poor performance.

Keep records of warnings, coaching sessions where strategies and agreements to improve have been made and discussions about failing to follow company rules.  This includes any and all documentation you have where the employee was put on a PIP (Performance Improvement Plan). 

These documents will be your lifesaver in the event that that the terminated employee will take legal action against you. Aside from that, these documents will help make the employee accept the reasons for why he will be terminated.

3.     Not Having a Legal Work Related Reason for Termination

Could you fire someone without work-related justification? No.

While most states don’t require a reason for letting someone go, it’s still best if you have sufficient work-related reasons.

4.     Not Being Prepared for the Termination Process

Part of knowing when to fire an employee is the mental and emotional preparation for what’s about to happen.

It’s very important that you know exactly what to say and prepare all the paperwork beforehand. Other than that, you need to make sure you are aware of company policies, state policies, and other rules that may affect the employee’s termination.

Also, make sure your team is prepared to handle whatever extra work might be left behind because of the newly vacant position.

5.     Talking Too Much

When you talk too much when firing an employee, you could end up saying something that you might regret, and that could make the situation worse.

It’s best to keep things short and just say exactly what needs to be said.

Knowing when and how to fire an employee is important. You can’t just fire someone after one small mistake. Having discussions and giving warnings beforehand to give the employee a chance to improve is really the fairest  route to take. 

Make sure to avoid these mistakes. Otherwise, you may face end up facing costly legal problems, or repercussions from other employees.  

Having a conversation where you have to terminate someone is difficult, even if you have handled it dozens of times.  Let us help you make it easier.  

Download our guide to Making Difficult Conversations Easy and get the tools to help you navigate through these conversations.