December 14, 2022

Reasons For Firing an Employee & How To Do It Right

Matthew Dickey

How do you know when to let someone go? It's easy to terminate someone when there's just cause—instances of ongoing subpar performance, poor work ethic., misconduct, policy violations, or negligence may all constitute justification for the termination of an employment contract. Depending on where your company is located, you may need a cause for firing someone. Some states are at-will employment states, which means that anyone can be fired for any reason. However, it’s not typically a good business practice to fire someone for no reason. We recommend researching your state laws before terminating an employee.

But what is considered a good reason to fire an employee? If an employee isn’t performing up to the standards expected for their position, you may consider firing them. Poor performance can include a lack of productivity as well as poor quality work. Additionally, if an employee is constantly missing work or is habitually late, they may also warrant being fired. If you have documented an employee's poor performance or absenteeism and they haven't made any effort to improve, it may be time to let them go. Ultimately, you'll need to use your best judgement when deciding whether or not to fire someone. Consider the impact that losing this employee will have on your business and whether or not there's any potential for improvement. If it seems like it's time to move on, don't hesitate to take action.

Reasons For Firing and Employee & How To Do It Right

Firing an employee is never an easy decision. In some cases, it may be a long time coming, while in others, it may be a sudden realization. However, once you’ve made the decision to fire someone, it’s important to do it right. The wrong way to fire an employee can lead to legal trouble for your company. Follow these dos and don’ts to avoid any liability issues.


Reasons For Firing An Employee


There are a number of reasons why you may need to fire an employee. Some of the most common reasons include:

Poor Performance

If an employee is not meeting the expectations outlined in their job description or performance review, they may be subject to termination.

Failure to Improve

If an employee has been given multiple opportunities to improve their performance but has not done so, termination may be the only recourse.

The Employee Is Affecting Office Morale

If an employee’s negative attitude is affecting the morale of those around them, it may be time to let them go.

The Employee Is Affecting Coworkers’ Performance

If an employee is constantly drama or otherwise causing problems for their coworkers, they may need to be let go.

Insubordination

Repeated instances of insubordination can warrant termination.

Breaking Company Policy

If an employee consistently breaks company policy, they may need to be let go.

Apathy

Employees who regularly show up late or call in sick may not be invested in their job and could be terminated.

Tardiness or Absence

Excessive tardiness or absenteeism can also lead to termination.

A few Dos and Don’ts to Consider When Firing an Employee

If you manage a team of people, it’s inevitable that you will eventually have to deal with a problem employee. Maybe they’re not meeting their objectives, they’re affecting the morale of their coworkers, or they’re constantly breaking company policy. Whatever the reason, knowing when to fire an employee is difficult. Once you’ve decided to fire an employee, it’s important to do it right. Some fired employees accept the news calmly, while others may decide to sue your company for wrongful termination. These dos and don’ts for deciding to fire and the process of firing a problem employee can help you avoid any liability issues.


DO:

Give the Employee Warning Signs That Their Job Is in Jeopardy
If an employee is not meeting your expectations, it’s important to have a conversation with them about it. Let them know what they need to improve and give them a chance to do so. If their performance doesn’t improve after a reasonable amount of time, then you can begin to consider firing them. But if you never give them a warning that their job is in jeopardy, they may be able to claim that they were wrongfully terminated.

DON’T:

Surprise the Employee with the News That They’re Fired
When you do decide to fire an employee, it’s important not to blindside them with the news. This will only make them angrier and more likely to take legal action against your company. Instead, schedule a meeting with the employee and let them know ahead of time that you need to talk about their job performance. This way, they won’t be caught off guard when you deliver the news that they’re being let go.

DO:

Have a Solid Reason for Firing the Employee
If an employee does something that results in them being immediately fired, such as stealing from the company or being caught using drugs at work, then you don’t need to give them any warnings beforehand. However, if you decide to fire an employee for poor performance or because they don��t fit in with the company culture, it’s important to have documentation to back up your decision. This could include performance reviews, written warnings, or testimony from other employees. Without this documentation, the fired employee could claim that they were wrongfully terminated and take legal action against your company.

DON’T:

Violate Any Employment Contracts or Agreements When Firing an Employee
If you have an employment contract with an employee or if there are any union agreements in place, make sure you follow those rules when firing someone. If you violate any of these agreements, the fired employee could use that as ammunition in a wrongful termination lawsuit against your company. For example, if your employment contract states that employees can only be fired for “just cause,” then make sure you have just cause before moving forward with firing someone.

How to Fire Correctly


Now that you know some of the reasons why you might need to fire an employee, let’s look at how to do it right
Have a clear and concise reason for terminating the employee. This will help protect you from any legal issues down the road. Document everything leading up to the termination. This documentation will serve as evidence should the employee decide to sue your company for wrongful termination. Do deliver the news in person if possible. This shows that you respect the employee enough to tell them face-to-face rather than through email or over the phone. Don’t get emotional when delivering the news. This can only make the situation worse and could lead to further legal issues for your company if the employees decided to sue. And finally, give the employees time to collect their personal belongings and say goodbye to their coworkers if they wish. It is important to not escort them out of the building immediately after firing them as this can look unprofessional and make them feel humiliated and mistreated.
After following these steps, you should have no problem with any potential legal issues that could arise from firing an employee.