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How Do You Terminate an Employee?

By Kenneth Heymann Managing Director, Heymann2 & Associates | March 2025

Of all the tasks required of management, terminating an employee is probably the most difficult and discomforting. In my years running a company and consulting with others, I found very few managers who could conduct a termination in an effective and humane way. And today more and more managers take the easy, colder way of terminating people via email.

But before one reaches the point of terminating an employee (as distinct from laying one or more people off due to business conditions or changing the work environment) there are a number of steps to go through before reaching that point. Along with the emotional and human impact on everyone, terminating an employee is also a decision with legal and financial consequences. Thus it’s important to ensure that a termination is legally sound, fair, and respectful.

Leading up to Termination

By the time you’re considering terminating someone, there should have been several conversations about performance and key incidents and concerns should have been documented. Feedback should be provided so that the individual understands the changes and improvements needed. Absent a direct violation of a company policy (drinking on the job, stealing, specific incident of insubordination, striking another employee) an employee should not be terminated based on a single act or failure. There should be performance or behavioral issues that have been addressed. And these issues should be, as much as possible, based on objective facts. In turn, the changes needed should be measurable (timeliness, frequency, etc.) as much as possible.

Once you perceive a performance issue with an employee, it’s essential to review the employee’s contract, company policies, and the employee handbook. You need to be sure that any issues that have arisen are not somehow addressed in any of the referenced sources. For example, the employee consistently leaves a half hour early.

Is that in the employment agreement as the employee is allowed to leave early for a personal reason. Or the employee doesn’t participate in company meetings as there is a sensitivity to large crowds. Just as conducting performance reviews involves being familiar with an employee’s unique circumstances, addressing perceived performance issues involves also being sure that there is not some prior agreement that supports the employee’s actions.

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