Firing an employee

Firing an Employee the Right Way: 7 Practical Steps

Quick Answer: Firing an employee should follow a clear and fair process. Confirm the reason, follow company policy, prepare the meeting, explain final pay and benefits, and complete the required follow-up.

1. Confirm the Reason

Do not schedule the termination meeting until the reason is clear and supported by facts. Review performance evaluations, attendance records, written warnings, complaints, investigation notes, and relevant company policies. These records should be accurate and should already exist before the final decision.

For example, if an employee is being fired for repeated attendance problems, the file should show the missed shifts, earlier discussions, written warnings, and the attendance rule that applies.

Keep the reason consistent throughout the process. The explanation given to the employee should match the company’s records and any later information shared with payroll, an unemployment agency, or another approved recipient.

2. Review Company Rules and Past Decisions

Check the employee handbook, discipline policy, offer letter, employment agreement, and union contract, if one applies. If the company uses progressive discipline, confirm whether the expected steps were followed.

Review similar past cases as well. Similar situations do not always require the same result, but the employer should be able to explain why one case was handled differently.

For example, if one employee received a final warning for repeated tardiness, there should be a clear reason why another employee with a similar record is being fired immediately.

3. Address Problems Before Termination

An employee with ongoing performance or behavior problems should usually know that serious concerns exist before the termination meeting. Clear feedback, written warnings, and a reasonable chance to improve can help the employee understand the problem, what needs to change, and what may happen if the issue continues.

Advance warning may not be appropriate when the situation involves violence, theft, serious misconduct, or a major safety concern. Employers should not promise a fixed number of warnings unless company policy, an employment agreement, or a union contract requires them.

4. Prepare the Meeting

Plan the meeting before it begins. Decide who will speak, what will be said, and how final pay, benefits, company property, and system access will be handled. Prepare any notices and instructions in advance.

The meeting should be private, brief, and respectful. When possible, include someone from HR or another manager who can take notes and answer practical questions.

An in-person meeting may work best for onsite employees, while a private video call may be more practical for remote employees. Email or text should generally not be the only way an employee learns that their employment has ended.

HR can help organize records, review procedures, prepare communication, and coordinate administrative steps. An employment attorney may be needed when the situation involves greater legal risk.

5. State the Decision Clearly

Give the main message early. A direct opening may be:

“We have decided to end your employment effective today.”

Briefly explain the reason in a way that matches the company’s records. Do not introduce new accusations, blame another manager, or suggest that the decision is still being considered if it is final.

The employee may disagree or become upset. Listen respectfully, but keep the discussion focused on the decision and what happens next. Avoid personal comments or statements that could suggest a different reason for the termination.

6. Explain Final Pay, Benefits, and Property

The employee should leave the meeting knowing what to expect. Explain when and how final wages will be paid. Final-pay deadlines can vary by state, so employers should check the rules where the employee works.

Also explain any details about unused paid time off, commissions, bonuses, health coverage, retirement plans, severance, expense reimbursements, company property, and system access.

For example, the employer may explain when the final paycheck will be issued, when current health coverage is expected to end, and how the employee should return a laptop or access badge. The information should match company policy, benefit-plan documents, and applicable laws.

Do not promise a reference, payment, severance package, or benefit unless it has been approved. Remove company access at a time that protects business information and fits the circumstances.

7. Document and Complete Follow-Up

After the meeting, record who attended, what was discussed, which documents were provided, and how company property and access were handled.

Tell coworkers only what they need to know about work coverage or reporting changes. Do not share private details about the former employee. A simple message may say:

“Jordan is no longer with the company. Please send client questions to Maria until further notice.”

Complete the remaining payroll, benefits, security, unemployment, and recordkeeping tasks. Keep related records if a complaint, investigation, or legal dispute may follow.

When to Seek Legal Advice

Consider speaking with an employment attorney when a termination follows a discrimination or harassment complaint, wage or safety concern, request for leave or an accommodation, workplace injury, or another protected complaint or activity. Different federal, state, or local protections may apply.

Legal review may also be appropriate when the employee has an employment agreement, is covered by a union contract, is part of a group termination, or works in a location with unfamiliar final-pay or paid-time-off rules.

Advice may also help when the facts are disputed, the records are incomplete, or the proposed decision differs from similar past cases.

Final Thoughts

A well-prepared termination gives both the employer and employee clear next steps. The decision should be supported by facts, follow company policy, and be communicated respectfully.

JS Benefits Group has worked with employers to discuss organized and respectful approaches to employee termination. Employers reviewing or developing their process can contact JS Benefits Group to discuss documentation, manager communication, workplace policies, and benefits-related steps.

Author

  • Jennifer Schaefer

    Jennifer Schaefer, MBA, ChFC, SHRM-SCP – Employee Benefits Expert | HR Leader | Certified Corporate Wellness Specialist

    As founder & CEO of JS Benefits Group, Jennifer Schaefer has spent 30 years helping employers lower healthcare costs through level-funded and self-funded plan design, claims data analysis, and benefits programs that keep good people from leaving. She writes for the Forbes Business Council, co-hosts Executive Leaders Radio, and has been quoted in the Philadelphia Inquirer on employer health costs.

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