How to Fire an Employee the Right Way

Employee dismissal is an unfortunate yet necessary requirement for many HR professionals and hiring managers and knowing how to dismiss an employee is an essential skill. The Bureau of Labor Statistics (BLS) estimates 1.7 million people were fired from their jobs in August 2025 alone, up from 1.6 million.

However, for the employee, getting fired is usually shrouded in ambiguity, and in the worst cases, it’s seen as shameful and devastating. After all, everyone involved is a human being with emotions and a life beyond the workplace, and something as significant as losing your livelihood is never taken lightly.

As common as involuntary separations seem to be, each circumstance is unique and needs to be handled as such to ensure that the termination is ethical, compassionate, and legally sound to protect the company from lawsuits.

In this guide, we’ll cover how to maintain professionalism and legal compliance throughout the offboarding process while being as sensitive and understanding as possible towards the employee.

Common reasons for termination

There are many different reasons why you may be required to take disciplinary action or fire an employee. Protecting your business and ensuring the safety of your team is likely your number one priority and employees that threaten these things may need to be let go.

Fair dismissal reasons with cause

Fair dismissal reasons may include, but are not limited to, the following examples:

• Drug or alcohol use during work
• Poor performance
• Damaging company property
• Theft or misuse of company property
• Sexual harassment
• Poor attendance
• Safety violations.

Without cause: Can you fire someone for no reason?

Layoffs are a common form of involuntary termination that’s considered “without cause.” And yes, an employer may fire an employee for any reason and without notice based on at-will employment laws, but there are many exceptions that are considered wrongful termination (which may also be referred to as “constructive discharge”).

There are laws protecting employees against wrongful termination. Breaking these could result in a costly lawsuit. Here are examples of unlawful terminations:

• Discrimination
• Labor law violations
• Employment contract violations
• Retaliation (e.g., in response to reporting illegal activity such as an unsafe workplace or harassment)
• Exercising one’s legal rights (e.g., taking leave, wages, or overtime)

We recommend consulting your legal counsel if you have any hesitations about whether you can rightfully terminate an employee.

How to dismiss an employee the right way

Except for serious crimes—which would warrant immediate termination—there are steps your company should take before firing an employee. These guidelines on how to dismiss an employee will help cover your bases as an employer and give your employees a fair reason for their dismissal.

1. Conduct regular performance check-ins

If you have concerns about an employee’s performance, use their goals and performance objectives to measure successes or failures against job expectations. If you aren't already evaluating your employees regularly, consider using a performance review checklist.

Job expectations should be written down, discussed, and agreed upon by both the employee and employer. This way, a dismissal won’t come as a surprise if the employee repeatedly fails to meet the performance standards that they agreed to.

2. Invite a witness to meetings

If a former employee disagrees with the reason for their termination and feels they were treated unfairly or wrongfully terminated, they may take legal action against the company. Because of this, it’s a good idea to have at least one other employee present in the room during the meeting for legal and safety reasons.

Ideally, an HR representative will act as the witness. As an HR pro, you’ve got the knowledge to guide the process in accordance with company policies and labor laws.

If being present isn't possible, you could choose another manager or senior executive to act as a witness. Remember, witnesses aren’t there to explain why the employee is being terminated; they're there to provide support.

3. Follow company processes

Part of firing someone the right way is to be sure that you’re adhering to the company's employee termination processes. Ensure you’re training managers on your company’s employee handbook. Your handbook should include the specific reasons for termination and detailed disciplinary actions.

If you must fire an employee remotely, have specific processes in place tailored for remote workers. This may include additional steps, such as having the employee return all company property by mail or signing documents electronically.

4. Make sure you're compliant

There are exceptions to at-will employment, so organizations terminating employees must be aware of wrongful termination laws at the federal, state, and local levels. In the US, the main federal regulations that can affect terminations are Equal Opportunity Employment Laws and the Family and Medical Leave Act (FMLA).

Equal opportunity employment laws

You can’t use any status protected by federal equal employment opportunity laws as a reason for termination, including (but not limited to):

• Age
• Gender (including gender identity or expression)
• Religion
• Sexual orientation
• Disability

It’s also worth noting that you can’t fire an employee for a reason that targets or adversely impacts people who fall into one of those protected classes. For example, it's illegal to fire someone for not working during a time that coincides with their observed religious holiday, as this would be considered religious discrimination.

The Family and Medical Leave Act (FMLA)

It’s legal to fire an employee during or immediately after they go on FMLA leave—so long as the reason for termination is unrelated to their use of FMLA. In fact, the third most common FMLA violation from employers is firing an employee related to FMLA.

This is a tricky area. Firing someone because of their maternity or FMLA leave can lead to legal complications without sufficient evidence to prove that your reason for termination is unrelated to the employee’s decision to take medical leave.

5. Prepare for the conversation

As part of the employee termination process, bring all documentation regarding the employee’s conduct and performance that led to their termination to the meeting. Note specific incidents, warnings, and disciplinary actions taken. Keeping information factual proves the employee is being terminated for objective factors, reducing the risk of legal repercussions.

Additionally, prepare additional documentation that requires the employee’s signature, such as a letter of termination. You’ll also need to provide the employee with information about unemployment, health insurance policies, and returning company property.

If you need to revoke their access to data, facilities, or equipment, make sure you can do that without delay. Notify IT and managers in advance that they’ll need to collect the employee’s gear and remove account permissions.

6. Choose the date, time, and location

The timing of the termination conversation can make a difference between a smooth, respectful transition and a confusing, unpleasant situation. The best date will depend on the circumstances, including the individual's schedule, company policies, and organizational culture.

Here are some best practices to keep in mind:

• Pick the ideal day. Schedule terminations early in the week to allow management and your HR team to address any questions, conduct an exit interview, and follow through with all offboarding processes. This also gives the employee time to process the change.
• Schedule the right time. Choose a time of day when you can minimize disruptions and be sure to look through your employee’s individual calendar to avoid time conflicts.
• Choose a discreet location. Select a location that provides privacy and ensures confidentiality. E.g., find a quiet conference room or office away from colleagues to avoid unwanted attention and embarrassment.
• Time the event invitation. Send the invite near the meeting time, such as the morning of. This will prevent unnecessary anxiety for an employee and protect the company should the employee decide to retaliate before they’re let go.

If you decide to notify the employee about the meeting time beforehand, avoid letting them know too far in advance. Send a calendar invite with a simple meeting title.

7. Be clear and direct during the meeting

In difficult conversations like firing an employee, using a script or notes with talking points can keep the conversation on track and ensure you don’t miss important details.

Here are some points you should cover:

• Provide justification. Stick to objective reasons that can be supported with documentation, such as performance evaluations or layoffs.
• Be clear. Begin the conversation by clearly stating the purpose of the meeting. Use clear and direct language to communicate that the employee is being terminated from their position.
• Express empathy. Be calm and compassionate. Acknowledge the difficulty of the situation and be attentive to their emotions and reactions.
• Listen. Let employees express their thoughts and feelings, but keep the conversation on-topic. Actively listen while keeping the meeting as short and direct as possible.
• Provide resources. Try to provide information to the employee about any support services available to them, such as severance packages or access to counseling resources. Answer any questions they may have regarding benefits or next steps.
• Discuss logistics. Outline the logistical details of the termination, such as the last day of employment, return of company property, and signing paperwork.

Keep the meeting brief and only cover the relevant information. By parting with everyone’s dignity intact, the organization upholds a sense of fairness and integrity. Maintaining a reputation as a company that treats its employees fairly is important for employee morale and attracting top talent.

8. Follow a smooth offboarding procedure

After the termination conversation, HR and management need to follow through with the employee termination process, performing things such as exit interviews and signing termination documents. Following an offboarding checklist ensures all necessary steps are followed for a smooth transition process.

Offboarding tasks can include:

• Performing an exit interview
• Signing the termination letter
• Determining unused PTO days
• Calculating any benefits and severance packages
• Collecting company-owned property and revoking access to company systems and accounts.

Respecting the employee’s feelings and experiences, showing you understand their termination isn’t inconsequential, and offering genuine thanks can help employees make an easier transition out. You’ll also likely come away from the situation feeling better about what you had to do, which is essential for your own well-being, too.

Is a letter of termination of employment required?

According to the Fair Labor Standards Act (FLSA), employers aren't required to provide a letter of termination. The exceptions are when employees are part of a union, a collective bargaining agreement, mass layoffs, or corporate closures.

Other employees to consider are at-will employees, meaning that either the employee or the employer can enact termination without notice, without cause, as long as it does not violate the contract and isn’t enacted for an illegal reason. Check any legislation around at-will employment in your state before dismissing employees to stay on the right side of the law.

In some states, such as Georgia, employees must sign a separation notice in addition to a letter of termination. Connecticut goes a step further, requiring an entire unemployment separation package.

Employee dismissal FAQs

Knowing how to dismiss an employee, follow the employee termination process, and obey wrongful termination laws is key. However, there are some other things worth knowing that can make things easier.

How does at-will employment affect employee terminations?

“At-will” employment means a company or an employee can enact termination without notice or cause, unless there’s an employment contract specifying otherwise. All states (except Montana) follow some version of at-will employment laws.

However, there are many exceptions to at-will employment and situations that present a significant risk of legal action.

What is a letter of termination?

A “letter of termination” is a formal notice used to inform an employee that they’ll be dismissed from their current employment. They can ensure employees follow the offboarding HR policies to protect the organization and encourage an amicable transition.

Other terms for a termination letter include:

• Termination of employment letter
• Notice of termination
• Letter of dismissal
• Termination notice
• Separation notice
• Pink slip

Can I send a letter of termination by email?

Termination letters should be hand-delivered to employees on their final day of employment, or when notified if they're allowed to work the pay period.

Mailing a termination letter is acceptable in instances of job abandonment or when individuals are banned from a workplace due to safety concerns. Companies should deliver the letter via certified mail to demonstrate efforts to meet statutory notification requirements.

How long should I keep a termination letter on file?

Employers should retain copies of termination letters for a specified period, usually dictated by your state Department of Labor. If no minimum timeframe is required in your area, a termination letter can be considered part of an employee’s personnel file document, so plan to keep the letter for at least two years.

Are termination letters different for at-will employment?

In the US, most employment is at-will. This means employees may leave their jobs at any time, for any reason. Employers can also end employment without cause, if no employee protection laws are violated or a contract states otherwise. The employer must still outline the employee’s rights and benefits in the termination letter.

Common protected categories include laws enforced by the Equal Employment Opportunity Commission (EEOC).