Employee Terminations — Steps to Remain Compliant and Avoid Pitfalls
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March 20, 2025The decision to terminate an employee’s employment is always challenging and uncomfortable. It is important to approach the process carefully and follow state and federal laws and regulations to avoid disputes and protect your organization’s reputation. There are a number of key steps to follow and pitfalls to avoid to stay compliant in the termination process.
Avoid Surprises
Employees should not be caught off guard by a termination. Ongoing performance discussions, documented coaching conversations, and regular reviews should all communicate consistent expectations and concerns. There should be documentation of meetings, performance improvement plans, disciplinary actions, meeting notes, and any relevant communications. Use facts and documentation to counsel and ultimately terminate an employee.
Follow Company Policies
Your employee handbook and human resources policies should guide the termination process. Managers must apply these policies consistently, especially regarding performance management and disciplinary procedures. Failure to follow the company’s procedures can expose the organization to legal risks and undermine internal credibility.
Avoid Setting Unfair Precedents
Consistency is critical. If one employee was given multiple chances for a similar issue, such as repeated tardiness, that same approach should be applied to others. Inconsistencies in disciplinary action can lead to claims of favoritism or discrimination. Strive to apply policies uniformly to all staff members.
Prepare
Schedule the termination meeting in-person or via a secure virtual meeting. It is best to have two people present, typically the employee’s supervisor and human resources. Prepare for the meeting to ensure you have all the required information, such as final paycheck, termination letter, paid time off payout, benefit end dates and collecting company property. Coordinate with information technology in advance to deactivate access to systems, email and web platforms immediately following the termination.
Communication
Ensure the meeting is brief while remaining respectful and professional. Avoid lengthy justifications or debates. State the decision, explain the logistics and allow the employee the space to process. Also, provide a short and respectful communication to relevant staff to notify them that the individual is no longer employed at the company but avoid sharing details.
Terminations done correctly will protect your organization legally, uphold your values, and treat the departing employee with dignity. While challenging, a structured and empathetic approach helps maintain employee confidence and organizational integrity.