How to Fire an Employee: The Dos and Don’ts

Jan 26, 2023 • 12 min read

DigiWorks | How to Fire an Employee: The Dos and Don'ts

Firing an employee is one of the most difficult things to do as a business owner as your employees often become a big part of your team and life and it’s hard not to empathize with them. However, sometimes you’ve got to make some really hard decisions to protect your company’s interests, as well as your other employees, and in some cases, termination can be the best way to do this.

Termination is a final resort after you’ve tried verbal warnings, mediation, written warnings, a performance improvement plan, and consultations. Some of the things that can be cause for termination include irregular attendance, theft, sexual harassment, physical or verbal altercations, damage to company property, poor performance, and an inability to comply with company policies and regulations. So how do you fire an employee? We’ve put together some dos and don’ts for you to break the bad news to make sure it is fair, effective, and professional.

You’ll learn:

  • Get everything in order beforehand
  • Follow up afterward
  • Choose the proper time and place
  • Do not dismiss an employee in front of an audience
  • Do not fire the employee on a Friday or before a holiday
  • Do not terminate an employee on parental or medical leave
  • Do not fire employees without a witness
  • Keep it short and to the point
  • Do not humiliate the employee
  • Avoid the element of surprise
  • Do not give the employee false hope
  • Consider providing a reference letter
  • Do not end the termination meeting on a low note
  • Do an exit interview

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1. Do: Get everything in order beforehand

Before firing an employee, make sure you have followed all legal regulations and policies. This includes making sure you have met the required notice period of time, having the proper paperwork ready, and knowing how much money you are entitled to pay out. Make sure you are knowledgable about the employee’s severance package and have proof of performance issues as well as documented performance feedback from managers and supervisors. 

Make sure you understand why you are firing someone. You don’t want to fire someone because you feel like it or just because you think it’s convenient. If you do decide to terminate someone, make sure you have documented everything and need legitimate grounds for termination. Documenting everything helps protect yourself legally.

Don’t forget to document everything in case there are questions later about whether you did everything correctly. For example, keep private, written records of the performance issues, the warnings you gave, the documents that were signed, and any other papers that show you followed your company’s process. Store them securely and share them only with the people who need them, such as HR or your legal adviser.

2. Don’t: Forget to follow up afterward

After you’ve terminated an employee, make sure to follow up and finish things off properly in line with your company culture. Send a formal email confirming the termination, send a copy of the termination letter to the employee, and give them a final paycheck.

If you haven’t already done so, make sure to sign off on any necessary forms and documentation. Also, make sure to keep copies of everything you sent out. Documentation is extremely important during employee termination and can protect the company if there happens to be a dispute. 

3. Do: Choose the proper time and place

Employee termination is a serious business decision and you need to make sure you take your employee’s feelings into account during the termination process. This is difficult news for anyone to hear so try to be as professional and direct as possible while showing empathy. 

1. Make sure there is no one else around.

Hold the meeting in a private room, away from other staff, so the conversation stays confidential. A private meeting protects the employee’s dignity and avoids a scene. Keep the group small: you, the employee’s manager if needed, and one witness, such as someone from HR.

2. Give them enough warning.

Employees who are caught off guard often feel blindsided, so the decision should not come as a surprise. Follow the notice period in the employment contract and in local law. Make sure they have been aware of their job performance or poor behavior and that they were given adequate feedback over time. 

3. Be honest about why you fired them.

Explain the reason clearly and calmly. Use the documented facts, such as ongoing performance issues or a breach of company policy. Do not use vague language, and do not argue or debate the decision.

4. Don’t dismiss an employee in front of an audience

A conference room or a private office is a good place for this meeting. It is quiet and private, so you can discuss a sensitive topic without being overheard. Hold the meeting with the employee, their manager, and one witness, such as someone from HR. No one else needs to be there.

The reason is simple: no one should be dismissed in public. Choose a time when few colleagues are around and make sure the conversation stays confidential.

Employees should also never be dismissed by email, by a message, or through a colleague who passes on the news. Tell the person yourself, in person, or on a video call if they work remotely. Anything else is seen as rude and disrespectful.

This is especially true when it comes to dismissing an employee in front of others. You might think it’s okay to fire someone in front of colleagues, but it isn’t. In fact, it’s probably best to avoid doing it altogether. There’s nothing worse than seeing someone lose his or her job in front of others.

Dismissing someone in front of others can damage trust across the whole team and may lead to complaints against the company.

A better approach is to use an exit interview to provide constructive criticism. Exit interviews are a great way to give positive feedback privately. 

Make sure the conversation is confidential!

5. Don’t fire the employee on a Friday (or before a holiday)

If you’re planning to let someone go on a Friday or during one of the holidays, it might be best to delay the firing process. Letting someone go just before a weekend or a holiday leaves them alone with the news and with no one at work to answer their questions.

A day early in the week is usually kinder. It gives the employee time to ask follow-up questions, speak with HR, and sort out practical matters such as final pay and returning company equipment, while your team is still at work.

6. Don’t terminate an employee on parental or medical leave.

In many places, the law protects employees who are on parental, family, or medical leave, and ending their employment during that time can lead to claims against the company. The rules differ by country and by state, so check the local rules and the employment contract before you act.

If you are unsure about whether you are legally allowed to terminate an employee, contact a labor attorney immediately.

7. Don’t: Fire employees without a witness

When it comes to terminating an employee, there are many things to consider. You want to make sure everything goes smoothly and you avoid legal issues down the road. Here are three tips to help you do just that.

1. Have a Witness

It is wise to have a witness in the meeting, such as someone from HR or another manager. A witness can confirm what was said and help protect both sides if there is a disagreement later. The witness should listen and take notes, not join the conversation.

2. Document Everything

You should document every aspect of the firing process. This includes documenting the reason for the termination, how long it took to complete, what happened during the meeting, and anything else that might come up. You’ll want to keep copies of emails, notes, and any other documents involved.

3. Be Honest

Don’t lie to your employee about why he or she is being terminated. Even if you think it’s best for everyone involved, lying won’t end well. Your employee needs to know exactly why he or she is losing his or her job.

8. Do: Keep it short and to the point

Don’t let your emotions cloud your judgment. You don’t want to make a rash decision because you are angry or upset. If you do, you might end up making a mistake that could cost you money. Instead, take some time to think about what you want to say and write down your thoughts. Then come up with a list of questions to ask yourself. Once you know what you want to say, keep it short and to the point!

Have a written plan ready before firing someone. This way, you won’t have to go into too much detail during the meeting. Also, follow the notice period in the employment contract and in local law. Finally, make sure final pay and any other amounts owed to the employee are ready, as required by local law and company policy.

9. Don’t: Humiliate the employee

Unethical behavior and poor job performance are some of the most common reasons why employees are fired. In some more serious situations, you might be emotional and angry and want to lash out. But, don’t do it. You might think you’re being tough, but you’ll actually make things worse.

Employees want respect, and they deserve it. If they feel like they’ve been treated unfairly, they may take matters into their own hands. They may even sue you down the road. And, while you might think you’d be better off just letting go of the person quietly, there’s no guarantee that you won’t end up paying out big bucks in court.

10. Do: Avoid the element of surprise

No one likes being surprised. We hate it. Your employee dismissal should not feel like a surprise, they should see it coming. Make sure you’ve conducted regular performance reviews and issued both verbal and written warnings leading up to the termination. 

11. Don’t: Give the employee false hope

Employees are human beings too. If you don’t treat them like humans, why should they respect you? Giving employees false hope is one of the biggest mistakes HR managers make. Employees usually do everything possible to keep their jobs. This makes it even harder to let them go. But being honest with them is always the best way to handle things. Be direct and it will be a lot easier on both of you. 

12. Do: Consider providing a reference letter

A reference letter should include a short summary of the employee’s role and what they accomplished while working there. In addition, check your local law and company policy, as the rules on reference letters differ from place to place.

Your company might even want to foot the bill for the reference letter. If you are asked to write one, make sure you do so promptly and accurately. You don’t want to find yourself in hot water later down the road.

13. Don’t: End the termination meeting on a low note

There are some things you don’t want to do during the process. Try your best to keep the discussion on track and end on a respectful note with good wishes and a handshake. Here are 10 tips to help you avoid ending the termination meeting on a very low note.

  1. Don’t make assumptions
  2. Don’t use vague language
  3. Don’t assume the person knows why he/she is being terminated
  4. Don’t talk behind closed doors
  5. Don’t make promises you can’t keep
  6. Don’t say “I’m sorry” unless you mean it
  7. Don’t tell the person where he/she will go next
  8. Don’t act like everything is fine
  9. Don’t be afraid to ask questions
  10. Don’t end the termination meeting on an extremely low note

14. Do an Exit Interview

This step is usually conducted by the HR team but if you don’t have an HR team, you can make use of an HR Tech platform like DigiWorks to take this off your hands. DigiWorks will prepare and conduct exit interviews and send you a detailed report of the process afterward. DigiWorks actually takes care of every step in the hiring, onboarding, payroll, and termination process. DigiWorks connects business owners with pre-vetted and assessed talent from around the world to take care of all your time-intensive tasks. 

Once you’ve been matched with a candidate, DigiWorks will conduct weekly check-ins with candidates from the platform to ensure they are productive, compliant with your company’s policy, and are solid team players. If this is not the case, the DigiWorks HR team tries intervention and mediation. And if all this fails, they conduct a professional and efficient termination meeting, exit interview, and all the documentation that comes with this process so you don’t have to go it alone. 

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Use the DigiWorks platform to hire, manage, and pay remote talent from all over the world.

Conclusion

Firing an employee is a very difficult thing to do, but remember that you are doing it for a reason and for the benefit of your company and your other employees. According to the Harvard Business Review, employees are often relieved when underperformers or problem team members are let go. Following these dos and don’ts will make the process easier for you and help you cover the essential steps while staying fair and respectful.

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About DigiWorks

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