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How to Terminate an Employee "The Right Way" Step-by-Step Guide

Letting go of an employee on whom an HR professional has spent months and weeks for training isn't a simple task. A careless termination usually backfires in the form of wrongful or illegal termination lawsuits. Therefore, it's essential to know how to terminate an employee, "The Right Way." 

Today, I'm planning to share those steps by step on how to fire an employee. This guide doesn't bring any sort of liability for your company. Also, an employee won't leave your office with a heavy heart or any hard feelings. Let's check it out.

employee termination guide steps

Employee Termination Step-by-Step Guide 

Here are some steps that you need to follow for a rightful termination of an employee.

Step No.1 Document Preparation is the Key to Success In this Scenario

Consider termination as a critical legal case. As you are going to fire an employee, then the burden of truth lies in your company. Therefore, you need to prepare all the documentation.

  • Get ready with a lawful reason for termination.

  • Keep your employee performance record handy.

  • You must have a document that makes it clear that despite your warnings, the employee doesn't work as per your company's standards. 

  • It's good to have written warning proof in the employee file, so you can show it when the time arrives.

  • Did your employee fail to comply with the company's rules and policies? If that's the case, then you need to have a proof or documentation that will solidify the base of disciplinary termination.

  • Does he fail to follow workplace ethics? Document a file about it.

Step No.3 Meeting Preparation is Requisite of Healthy Relationship

Once you decide to fire an employee, you just can't go to the lobby and fire him in front of other employees. You have to decide what to say when terminating an employee. You need a script in hand. Are you wondering what to say?

Your script should be short, simple, and straight-forward. Don't tell a tale. You can use these words,

"I have bad news for you Hannah, and you may like to sit down for it. I'm afraid that you won't be an employee of the company any longer. By looking at your past performance record, the HR department decided to terminate your contract with the company."

Prepare a script and then stick to it. Clear and direct communication is required. If you use vague wording, then you won't send a clear message. Not being transparent with your message means experiencing the adverse outcome. So, play this part carefully.

Step No.3 Inform Other Employees to Keep Work Going with Flow 

You can inform co-workers and other employees that the company has decided to terminate an employee. However, you need to maintain a level of privacy. An employee who you are going to fire must hear the news from you.

If you trust other co-workers, you can tell them beforehand. Else you can break the news to all after the termination meeting. When you are sharing the story of termination with co-workers who are doing good and are getting affected indirectly or directly due to the poor performance of that employee, then it will be a piece of good news to them.

Termination of a poorly performing employee isn't just right for the company's future but also essential for other employees. In a workplace, every employee is trying hard to achieve short and long term goals. However, when many people are doing great and making the most of their talent, then they don't like to have a co-worker who is not making an effort on the same level. The toxic workplace doesn't take into consideration this sort of imbalance in employee performance. Therefore, people used to leave that company.

When you fire an employee based on his low performance and not following the company's policy and rule, then you are setting an excellent example for others.

Step No.4 Schedule a Meeting at Right Time and Day

Now the question is, what is the right time to terminate an employee? The right time is at the end of the day when everyone is wrapping up. So, an employee who got terminated doesn't feel bad as he leaves alongside others while saying good-bye to everyone.

What is the right day to fire an employee? According to experts, termination should be done at the start of the week. Do you wonder why?

Well, when you do this on Monday, then a candidate doesn't take much time to process it. He starts searching for the new job and taps on a new career avenue. During weekdays, he can connect with good recruiters, and through them, he can easily find a new job.

So, you need to schedule a meeting for Monday at 5:00 PM. 

Step No.5 Termination Announcements

As I said before, write to-the-point scrip and then stick to it. You can break the news. Make sure to share this news with respect and integrity. Try to be encouraging. You don't have to say:

"I warned you so many times, and you didn't listen to me. It's your fault, not mine, that company is firing you."

how to fire an employee

Stay away from the blame game. 

Also, don't try to explain the company's decision. Just give a good reason to digest. 

Many HR managers start empathizing with their employees, and it's not the right approach. 

Don't say:

I understand what you are feeling right now 

OR

It's okay to feel that way

OR

We are in this together

OR

It's going to be Okay.

Don't try to comfort him. You need to maintain your professionalism and integrity at any cost.

Step No.6 Handle Your Employee Reaction

Once you break the news, give your employees some time to react. Most predictable reactions are:

  1. Anger: Employee gets angry; you need to stay calm.

  2. Grief: Employee bursts into tears, makes tissue paper accessible.

  3. Shock: Employee is surprised, explains the reason again.

  4. Denial: Employee isn't accepting termination call, repeat your message.

Step No.7 Time to Answer Some Question

Once the employee process this lousy news, tons of questions come into his mind like

When I'm going to leave this company?

Will I complete my on-going project?

When will I get my last paycheck?

Can I talk to other employees about it?

And many more. A successful HR manager stays there and provides answers to all the questions in both verbal and written form.

What is Meant by Salaried Employee? Get an Idea

When you inform an employee that they are being terminated, what is the most important activity?

  • Try to address all his questions and queries properly

  • Share a clear message of termination

  • Keep a record copy of the termination letter

  • Be there for him, after breaking termination news for quite some time. Don't walk out.

 

All sorted out? Shake hands and say good-bye for good. Follow this guide on how to terminate an employee, and you hardly have to face any adverse consequences of this action later. Have some tips and tricks? Feel free to share.

 

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