CEDR Two Minute Trainer: A Guide to Employee Terminations

The excuses for not firing someone, even when you know they need to go, are limitless. And admit it, some of these probably sound pretty familiar. But putting off a necessary termination not only makes you miserable, it can drag down your production and the rest of your team.

Firing an employee is no doubt one of the most difficult tasks of being an employer. Even seasoned managers approach a termination with dread. But a little preparation and guidance can help you minimize the fear, face the termination with at least a bit of clarity, if not confidence, and lessen any potential backlash to you or your practice.

The vast majority of employment law cases arise out of a termination, making separation from employment the most vulnerable time for an employer. For this trainer, the underlying assumption is that you have already exhausted options other than termination, have already consulted with your HR expert(s) to make sure there are no extraordinary risks involved in terminating this employee, and have prepared a written termination letter. Now you are ready to plan the final meeting with the employee.

Your primary goal is to treat the employee with respect and dignity, regardless of how they react, both so you can sleep at night, and to reduce the likelihood of the employee filing a vengeance claim or lawsuit against you.

Let’s go over some specifics.

Time and Place: When and Where to Hold the Termination Meeting

First, determine what time of day would be best for holding the termination meeting. Opinions on the best time of day to discharge an employee are all over the map, but ultimately you need to consider what is best for the employee and for your business. As for day of the week, there is no magic rule, nor any reason to wait until a Monday or Friday. If you can help it, do your payroll manager a favor and try to fire at the end of a pay period.

Holding the meeting either first thing in the morning or at midday allows the employee the ability to spend the rest of the day beginning their job search and making phone calls. Getting a jump on their job search helps some people deal with the hurt, anger or other feelings about being fired. For parents, it may also give them a chance to gather themselves before their kids get home from school.

If you are concerned about disruption to the rest of the team, the end of the day is the better option, as it is less disruptive to the office’s flow of production and less likely to interfere with other employees’ abilities to get their jobs done. It may also be better for the terminated employee because the risk of facing coworkers on the way out the door is lessened.

Another important consideration is where to hold the meeting. You will need a private area where you cannot be overheard by other employees, visitors to the office, or clients/patients. The meeting will be short—less than ten minutes—so you should be able to use an empty office or even the break room for such a short amount of time.

A few words about witnesses. You need to have a witness present, or at least close by, in case things go badly. The witness is preferably another manager, but could be a senior coworker. You are looking for someone who can help diffuse a highly emotional situation, not someone who may add tension to the situation. Sometimes it’s good to have the person doing the termination leave the room afterwards, and have the other person stay to wrap things up, make sure the person is okay, and oversee their getting out of the building safely and securely. Also, the witness will be able to testify about what is said, in case your method or delivery is questioned. 

The best-case scenario is that the employee expresses some disappointment, but quickly accepts the decision and walks out of the meeting focused on the future. However, some employees will react with extreme anger or shock. Consider the risk of such a reaction beforehand, and have security backup if necessary.

Before The Meeting: What to Have Ready

Have your termination letter and the employee’s final paycheck ready to go before the termination meeting. Many states allow employers to pay the terminated employee on the next regular payday. That is not always the best practice, however. If at all possible, figure out what you owe the employee in terms of wages, unused vacation, and bonus pay and have a check ready to hand them when you meet with them. The employee will have one major worry off of his or her mind if they walk out the door with a check. Unless the individual has been there for less than 90 days, we recommend paying out two weeks in lieu of notice, but it is not required by law.

Be sure to address any health insurance benefits or continuation options for the employee. Usually, the insurer will send the notice directly, but some states put the onus on the employer to notify the employee of their rights under COBRA or state equivalents.

Finally, make sure to secure your data before the meeting. Have the person’s company email and software passwords reset and company access terminated, so that there can be no confidentiality breach, sabotage, or destruction of evidence or work product.

“What Do I Say?”

This is the most common question. There is no easy way to break the news. It’s best to be direct and to the point. Once the employee is seated, get right to it. Here are some options:

“We’re meeting today because we are letting you go.”

“I have some difficult news for you. I need to let you know that we are terminating your position.”
“After careful consideration of your performance / our business needs / your attendance, we’ve decided that today will be your last day.”

At this point the employee may want to debate the decision, or ask questions. Keep the conversation as brief as possible. Bringing up past incidents and re-hashing the details has absolutely no value in the termination meeting. It’s okay to just listen, and then say, “I hear you, but the decision has been made.”

Some Additional Do’s and Don’ts

• Do not engage in long explanations of the reason for termination. If you have managed the employee properly and have documented prior disciplinary meetings effectively, you only need to remind the employee that the problems that led to termination have already been discussed.
• Do not tell the employee you are sorry or take the blame. This not about your feelings or even your shortcomings as a manager. Be confident in your decision. You didn’t arrive at this conclusion without some careful thought. Know that you are doing what’s right for your business, and no matter how sympathetic you are, this is the right decision.
• Do answer the employee’s questions about final pay, COBRA, their retirement or profit sharing account, etc., or let them know how to reach you with follow-up questions.
• Do give a reason for the termination. Be brief, but accurate. Have a script prepared ahead of time so that you are not searching for words. If you seem hesitant, the employee could get the impression that the decision was not properly made, or that you are not being honest. If the reason is both performance and a downturn in business, say it’s both, don’t call it a layoff if it was truly the person’s performance.
• Do be kind, but don’t assume you know how the person feels. Don’t say, “This is hard for me, too.” Or, “I know how you feel.” Even if true, this statement never goes over well to someone being fired.
• Don’t get too caught up in the person’s reaction or personal story. They may tell you all the reasons the timing is awful for them, or how scared they are, or how unfair this is, but it is extremely rare for any person to raise an issue that should actually cause you to re-think a termination.
• Be tactful and firm. Don’t be afraid of a little silence while the news sets in. If they cry, hand them a tissue, and ask them if they need a moment. If they are angry, tell them you are happy to review their concerns in writing at a later time, but for now, you’ll ask that they pack their things and go.

When you have gone through the necessary information, wrap up the meeting. When appropriate, simply stand and say you will be happy to walk the person out, or offer them a box to pack up any personal items.

Once it’s over, you will feel relief, but also probably feel pretty heavy. We are all human, and terminations are tough confrontations with a lot of emotion. Take care of yourself over the next day or two. Meditate, have a drink with a friend, or focus on the positive changes you can make going forward; but try not to beat yourself up, or go over it in your head repeatedly. You never know what doors will open for the person you let go, or for your practice, once they are gone.

Three Things You Can Take Away:

1. The smoothest terminations are those that are well considered and well planned. Have a script ready with what you are going to say.
2. If there are any risk factors such as protected activity, protected class, or wage disputes, STOP and call CEDR first.
3. Treat your soon-to-be former employee with respect and dignity, and take the high road all the way to the end.

No two terminations are exactly alike, so if you have any questions, members should not hesitate to call one of our CEDR HR Solution Center Advisors at 866-414-6056. We’re here to help!