Contrary to what we see on popular media, shouting “You’re fired!” is no way to terminate an employee. There are several steps to take for the work arrangement to end positively. From using tactful language to gathering documentation to checking employment laws, there’s much to concern yourself.
And that’s not even the half of it.
This may seem like a tall order, especially if you’re a new or small business. But with the right resources and guidance, you can confidently terminate employees with dignity. By the end of this article, you’ll know the basics of terminating an employee and snag some termination letter templates and employee termination scripts to use along the way. Let’s get right into it!
5 Things to Know About Terminating an Employee
| Things to Know About Terminating an Employee | Details to Keep in Mind |
|---|---|
| Preparing employees for termination is only fair. | Addressing issues upfront is better than firing without giving employees time to stop it. |
| Not all termination reasons are legal. | Double-check your termination reason for legality. |
| Preparing for a termination conversation makes it go smoother. | Use scripts and templates as needed. |
| U.S. employees don’t have to disclose termination reasons. | Disclosing the reason is a best practice, and it’s preferred by employees. |
| Short interactions are best. | Longer conversations are more likely to get heated. |
Before ending a working relationship, it’s essential to learn all you can about terminating an employee. We can help in this regard. Here are some things to know about terminating an employee.
1. Preparing the employee for termination is only fair.
Sometimes, employees are genuinely caught off-guard when they find out they’re being terminated. This can lead to a financial crisis and loads of stress. Usually, this happens because the boss or supervisor didn’t communicate that termination was on the table. It all comes down to a lack of effective communication.
Employers often fire workers due to a history of poor performance or behavioral issues, meaning that the problem occurs more than once over time. Whenever an employee shows signs of insubordination (or other issues), that’s an opportunity to address that behavior or issue and give the employee a chance to stop the worst from happening. There should be a pattern of discipline aligned with the employee’s unwanted actions.
There will also be times when the employee has done something so awful or outrageous that you must fire them immediately. There’s no way to prepare the employee for termination in a case like that – they have chosen for you. A handbook outlining grounds for termination, disciplinary actions to expect, and any related information is beneficial. You can draw from the document as you move through the disciplinary and termination processes.
This ensures that employees won’t be caught off guard when they reach the termination point.
REMOTE PEOPLE IMPORTANT TIP
Creating a paper trail (digital or physical) is critical when reprimanding an employee or warning them about impending corrective action or termination. That way, they can’t claim that you acted nefariously or intended to do them harm in finally terminating them.
2. Not all termination reasons are legal.
Before you decide that firing your employee is the way to go, look at your state’s labor laws. You can’t fire your employee for absolutely anything. For instance, firing an employee for the following would be unlawful:
- They are getting too old.
- They have a disability.
- They are claiming that someone has harassed them.
- They practice a religion you disagree with.
- They are on protected leave, and the business is being negatively affected.
Take a moment to think about why you’re firing the employee. If it’s for a lawful reason (like below), feel free to proceed:
- They haven’t reached agreed-upon performance goals, and/or their work quality is poor.
- They have made threats to you or other people in the workplace.
- They are frequently late or absent from work.
- They have proven themselves to be dishonest.
- They don’t follow company rules.
3. Preparing yourself for the termination conversation can make it go more smoothly.
Since you’ve stumbled upon this article, it’s safe to assume that you know the importance of planning. But did you know you also need to prepare to fire someone? Instead of walking up to the employee’s desk and striking up a conversation out of the blue, do the following:
- Set a meeting with them. A termination meeting usually takes about 20 minutes. The main goals are to inform the workers of how to separate themselves from the company and how to return equipment.
You may or may not have to tell the employee why they’re being terminated (more about this later). - Plan out what you’ll say to the employee during the meeting. This doesn’t have to be totally planned out, but it can be. You may use templates for any areas of conversation you don’t feel confident about.
4. American employers don't have to tell employees why they're terminated.
Did you know that you’re not legally obligated to tell workers why they’re being terminated? That’s because, in America, we have at-will employment laws that don’t require termination reasons to be disclosed. Still, if you want to tell the employee why they’re being fired, you can. It’s a widely recognized best practice in the professional world.
If you are outside the U.S., check the laws in your area to see if it’s necessary to disclose the reason for the termination.
5. Short interactions are best
Termination conversations can very quickly become emotionally charged. If the employee has questions about their termination, feel free to answer some of them. But try your best to keep things short in an attempt to keep things from progressing to dramatic or even violent territory. If you’re trying to cut the conversation short and the worker isn’t backing down, remind them that the decision is made and that it’s final.
Choose an Employee Termination Script: Scripts for Terminating an Employee
For larger companies with dedicated HR teams, you might not need to hold a meeting to fire an employee. Sometimes, all you need is a minute alone with the worker. After the short conversation, you’d direct them to the HR department.
REMOTE PEOPLE NOTE
Remember that you can update these scripts as needed to more closely fit the situation you’re facing.
The scripts below can be helpful in crafting and fine-tuning your message for the employee:
Script 1: For employee incompetence, lack of productivity, or missed milestones
“Hi [Employee’s Name], I’d like to speak with you for a moment, please.
Over the past [timeframe], we’ve dealt with ongoing challenges with [specific issue: missed deadlines, productivity, etc.], and despite attempting to address them, we haven’t seen the improvement we were looking for. Because of this, we’ve come to the decision to end your employment with [Company Name], effective [date].
I know this isn’t easy, but [HR Name] will guide you through the next steps, handling things like your last paycheck and other details. I want to thank you for your contributions to this company, and I wish you the best moving forward.”
Script 2: For insubordination or a related offense
“Hi [Employee’s Name], thank you for agreeing to speak with me.
We’ve observed repeated incidents of insubordination, such as [name specific examples, e.g., refusal to follow instructions, disrespectful behavior, etc.]. Even after our prior discussions and opportunities to address this, the behavior has yet to change.
Because of this, we will be ending your employment with [Company Name], effective [date]. [HR Name] will reach out to you shortly to give you details about your final check and next steps to be taken.
We appreciate your time here and wish you the best in the future.”
Script 3: For attendance issues
“Hi [Employee’s Name], I appreciate you for meeting with me. I need to talk to you about this ongoing attendance issue.
We’ve had several conversations and have attempted to work with you on improving this, but your attendance is still a problem, with [specific examples, e.g., frequent tardiness, unexcused absences, etc.]. We’ve reached a point where we can no longer move forward.
Your employment will end with [Company Name], effective [date]. [HR Name] will be reaching out to you about your final paycheck and any next steps.
We appreciate the work you’ve done here and wish you the best in your future endeavors.”
Script 4: For theft or other forms of criminal behavior
“Hi [Employee’s Name], thank you for meeting with me. There’s a serious matter we need to discuss.
It has come to our attention that [specific behavior, e.g., theft, fraudulent activity, etc.] has occurred. That’s a distinct violation of our company’s policies and ethical standards. We’ve thoroughly reviewed the details of the situation, and have made the decision to terminate your employment with [Company Name], effective immediately.
[HR Name] will be reaching out to you regarding your final paycheck and the next steps. We take these matters very seriously, and I need to be clear that this decision is final.
Thank you for your time here, and we all wish you the best.”
Script 5: For sexual harassment, physical violence, or threats
“Hi [Employee’s Name], thank you for meeting with me. There’s a serious issue we need to discuss.
It has been reported and confirmed that you were involved in [specific behavior: sexual harassment, physical violence, or making threats], which is a violation of our company’s policies and the law. We have a zero tolerance policy for this type of behavior, and after a thorough investigation, we’ve made the decision to terminate your employment with [Company Name], effective immediately.
[HR Name] will reach out to you regarding your final paycheck and any other necessary steps. Please understand this decision is final and reflects the seriousness of the situation.
Thank you for your time, and I wish you the best.”
Script 6: Employer would rather not disclose the reason
“Hi [Employee’s Name], thank you for meeting with me today. Let’s get straight to the point.
After careful consideration, we’ve made the decision to end your employment with [Company Name], effective [date]. While I’m unable to go into the details, please know that we’ve considered this decision thoroughly.
[HR Name] will reach out to provide you with the necessary information about your final paycheck and next steps.
We appreciate the time you’ve spent with us and wish you the best in your future endeavors.”
Find a Termination Letter Template
[Company Letterhead]
[Date]
[Employee’s Name]
[Employee’s Address]
[City, State, ZIP]
Dear [Employee’s Name],
After thoughtful and careful consideration, we must inform you that your employment with [Company Name] will be terminated, effective [date]. The reason for this decision is [brief reason for termination, e.g., performance issues, violation of company policies, etc.].
Please return all company property, including keys, documents, and equipment, by [date]. Your final paycheck, including any outstanding benefits or accrued time off, will be provided to you in accordance with company policy. We will also share information about your eligibility for [severance, continuation of benefits, etc.], if applicable.
We understand this news may be difficult, and we encourage you to reach out to [HR Contact Name] at [HR Contact Phone/Email] for any questions regarding your final pay, benefits, or the transition process.
We thank you for your time at [Company Name] and wish you the best in your future endeavors.
Sincerely,
[Manager’s Name]
[Manager’s Title]
[Company Name]
Things to Bring to The Termination Meeting
We strongly recommend not attending a termination meeting without being fully prepared with any necessary documentation.
History of Performance Issues (if applicable)
Though you don’t have to tell an employee why they’re being terminated, you still can. If you plan to do so, it helps to bring evidence of your claims, as the employee will likely have some questions. For instance, if you’re firing an employee because they were repeatedly late, it would make sense to bring a record of their lateness (timesheet entries, for example) and any documented warnings you sent in the past. If it’s in black and white, the evidence will be difficult to dispute.
In another scenario, if an employee was found to violate a company policy, you could point out language in the employee handbook that prohibits this type of behavior. And if there’s physical or digital evidence of the employee’s offense, you can also bring that to the meeting.
A Company Property List
Make a list of all the company property the employee has in their possession. Ask the workers for the items during the meeting and allow them to surrender them. If the employee cannot return all of the items right then and there, you can request that the items be returned to the company at a later date.
If the worker is remote, making arrangements before the meeting can be helpful. That way, you can inform the employee how to return the items to the company. Different carriers have different shipping procedures.
A Witness
Again, this is not a requirement for a termination meeting. However, a witness could be helpful later if you run into legal problems associated with this termination situation, and they could provide support during the meeting as needed.
The person you choose to be a witness is up to you. You could invite the employee’s supervisor, a neutral HR representative, or another employee.
Final Paycheck
If you already have access to the funds, you can bring the final paycheck to the termination meeting. You are typically not obligated to pay the employee this quickly, but the employee will appreciate it, and it’s one less thing to do later on. Double-check that the total pay is correct and includes not only the employee’s wages but also:
- Any unused paid time off (if your company policy dictates that it’s required upon termination).
- Pay for any performance bonuses or other work achievements you’ve promised the employee.
- Severance pay per your business’s policy and/or legal requirements applicable to the firm.
- Any overtime that hasn’t yet been paid.
It can be helpful to include a breakdown of the final paycheck and everything included in its total. That way, there won’t be any questions about whether the amount is correct.
COBRA (Consolidated Omnibus Budget Reconciliation Act) Notice
Whenever an employee is terminated, employers with more than 20 employees must inform them of their rights under the COBRA Act. The worker must continue their company health coverage for up to 18 months; they can decide to let their health coverage end or go through with COBRA. Bring their COBRA election notice with you(if it’s available – you get up to 14 days to give it to them) and point out any pertinent details during the termination meeting (or send them via email):
- How long do they have to pursue COBRA
- How much will it cost to keep the employee health plan?
- Coverage options that are available to the employee.
REMOTE PEOPLE FURTHER READING
Since COBRA can be difficult for some to understand, feel free to direct them to this resource on Healthcare.gov. It outlines everything an employee needs to know about COBRA.
Employee Separation Agreement
Put together an employee separation agreement, a document outlining the details of the end of the working arrangement. Some of the clauses in a typical employee separation agreement include:
- A waiver of legal claims helps to prevent surprise lawsuits from the employee down the line.
- Severance pay. Depending on your business policies, the employee’s length of work, and the laws governing your company, the worker might be due a severance package. Be ready to speak to this at the time of the termination meeting. Some businesses use the severance package to incentivize the employee to sign the waiver of legal claims.
- Any other clauses would benefit the business or the employee now and in the future.
- Non-compete or non-disclosure agreements (if applicable). These agreements further protect the company from future legal issues.
Before presenting the document to your employees, be sure to talk to HR and/or your legal team to ensure that it complies with employment policies applicable to your business.
Things That Make an Employee Termination Meeting Worse
Now that you know how to terminate an employee, let’s get into the reverse – how NOT to terminate an employee. There are a few things you’ll want to avoid. If you don’t, you could sour this already touchy situation.
- Not telling an employee why they were let go
Though you’re not legally required to disclose that information in the U.S., withholding it can quickly eliminate any chance of an amicable separation of employment. So, if at all possible, we recommend volunteering that information. - Firing someone publicly
Firing someone in public or front of their coworkers can be humiliating and even traumatizing, leading to resentment toward management. Similarly, terminating an employee over the phone—unless absolutely necessary—can feel impersonal and unprofessional, depriving them of the dignity and clarity that an in-person conversation provides. We recommend handling terminations in a private, face-to-face setting whenever possible, ensuring the affected employee receives the necessary support and clear communication. - Not documenting issues as they come up
If you don’t keep a running trail of altercations and the business’s response to them, you won’t have a leg to stand on later on when termination is the only next step, and someone requests information about the grounds of termination. - Refusing to answer questions from the employee
Put yourself in your employee’s shoes. If you were fired and had questions, wouldn’t you want answers? Not allowing the employee to ask questions or express their side of the story can make the situation feel one-sided and unjust. Just make sure that your responses to the questions are clear and concise. After you’ve answered a few questions, don’t linger on. End the conversation before things get out of hand. - Being rude or insensitive during termination conversations
Using harsh, demeaning language or showing a lack of empathy during the termination can create lasting bitterness and damage the company’s reputation.
So, there you have it—everything you need to know about terminating an employee. We hope you found the information you were looking for, and we wish you the best of luck going forward.
Author: Susan Snipes
Susan is an experienced, certified HR and compliance professional who provides HR and compliance strategies to companies with global and US-based teams.
