If you’re looking for tips on how to fire an employee, you’ve come to the right place.
Needing to fire an employee usually happens because of a fault on the employee’s part. Compare this to layoffs which happen because a company is downsizing.
Firing is challenging for everyone involved. If you navigate it successfully, your company’s future, productivity, and team dynamics can come out unscathed.
Navigate it poorly and you could find that your company culture suffers, your productivity declines, and employees start to leave or quiet quit.
Firing is so common that 40% of Americans have been fired from a job.
When firing someone who’s going to replaced, it costs between 16.1% and 20.4% of their annual salary. For senior executives, this rises to 213%.
Reasons to fire an employee
Some of the reasons you may fire an employee include:
- Drug or alcohol use at work
- Sexual harassment
- Bullying
- Property damage
- Theft
- Policy violations
- Poor performance
You may also fire an employee for another reason or a combination. Be sure to have documented evidence of employees’ violations if you’re letting someone go for any of these issues.
The reason or reasons behind the termination may impact your approach in how to fire an employee.
How to fire an employee
So what should you take into account when considering how to fire an employee?
Don’t do it out of nowhere
An employee should have some awareness that this is coming.
For instance, if you’re firing them because of poor performance, you should’ve already spoken to them about their performance and set out a path for them to improve it.
If it’s behavior-related, they should have received a warning and had the opportunity to fix things. Surprising someone is rarely the best approach when it comes to how to fire an employee.
Give them a chance to improve
If you want to fire someone because of poor performance, it’s important to first give them the chance to improve.
Explain what your issues with their performance are and work on a plan to get their output to where you need it to be. This ensures you’re not acting in haste and are still abiding by the law.
To help them improve, could you offer some form of training? For instance, get a colleague to mentor them, sign them up for an online course, or send them away for a training day to upskill them.
Check the rules
When thinking about how to fire an employee, it’s important to abide by the law. Depending on where you’re based, the law will vary, so be sure you know exactly what the rules are around firing employees.
Also keep on top of changes to the law.
For instance, the UK’s upcoming employment rights bill plans to make firing and rehiring practices illegal. It isn’t in place yet, but it’s a policy that’s popular with voters. If it does get approved, new regulations will likely be in place in 2026.
Follow company policy
You’re likely to have some sort of company policy around how to fire an employee.
Following this procedure will ensure that you remain in compliance with the law and your company’s requirements. It will also make the process less stressful and more streamlined for you as the steps you need to take are already laid out.
Prepare before the meeting
Ensure you have everything you need before the meeting. If you’re firing someone because of misconduct, have the evidence with you to present during the meeting.
Clearly make a note of what you’re going to say and stick to it. This isn’t the meeting for pleasantries or tangents about what you watched on Netflix last night. Small talk isn’t helpful when it comes to how to fire an employee
Have a neutral third-party present
Having a neutral third-party present when you fire an employee protects both of you. It can also help prevent emotions from escalating.
As an alternative, you could record the meeting if it’s done over video call.
Keep the meeting short
A meeting to fire an employee is likely going to be awkward. Keep it short to allow them to save face and reduce the stress for yourself.
Explain yourself clearly and don’t tiptoe around why you’re firing them. Skirting uncomfortable topics only makes things more awkward.
Once your employee knows they’re leaving, they’ll need time to process the news and their emotions. Give them that space and ensure they can empty out their desk without their colleagues’ watchful eyes.
When thinking about how to fire an employee, it’s important to consider ways to make it less painful for everyone.
Document everything
Keep a record of every conversation. This covers you, the business, and the departing employee legally if something goes wrong.
Show some emotional intelligence
If you’re firing an employee or laying them off, don’t talk about a vacation you’re about to go on. Understand this will be difficult for them whatever the reason behind the firing and keep that in mind.
It’s okay to show emotion here—that might actually work in your favor.
However, don’t get personal. If you’re trying to be mindful of how to fire an employee, this isn’t the time for personal conversations. You don’t want to come across as callous and detached. Empathy is key.
Get someone else to review your communications
If you’re writing a particularly long email, or one with legal ramifications, get a second pair of eyes—particularly from colleagues in legal—to review your communication before sending.
This will protect you and the employee, as well as ensure that what you’re saying comes across in the right way.
Retrieve company equipment
Make sure to organize retrieving company equipment the employee may have such as a laptop. If they work remotely, arrange a courier to pick it up. If you’re firing them in person, ask them to leave behind their equipment when they go.
Close their accounts and redirect logins
Make sure to close their email account and any other accounts they may use. For logins, change passwords to ensure they can’t still get in and post negative things as your brand on social media, for example.
Explain severance packages
If applicable, explain the severance package to your employee. Let them know about how their firing will impact any benefits and when they’ll get their last paycheck.
Clarity and communication are important at all stages of the process when it comes to how to fire an employee.
Evaluate the process
If you’re firing an employee because they’re the wrong cultural fit, does the issue lie with them, or with you? Is there something you could do to improve your hiring practices and prevent this from happening again? For example, should you go into more detail about your company culture or role requirements on job descriptions?
Or, if the issue lies later in the process, could you offer more training during onboarding so that employees get up to speed faster?
Also consider your process on how to fire an employee and if there’s anything you could’ve done differently.
Conclusion
Firing an employee is an uncomfortable experience for everyone involved. The more you do to make the process as smooth as possible, the less stressful it will be for managers and the fired employee.
Making a plan for how to fire an employee starts well before the actual termination. Your hiring process, training opportunities, and company culture, all factor in. Want to make sure you’re setting every employee up for success? Workrowd can help.
Our all-in-one tool suite ensures your team members can make the most of your employee experience. With easy access to everything you offer at their fingertips, they’ll be positioned to thrive from day one.
Ready to learn more? Contact us to find out how we can supercharge engagement and culture in your organization.
