How to Fire Someone Nicely: Tips and Best Practices

What to consider before firing an employee

Terminating an employee is a serious decision. Before you fire someone, it’s important to make sure you’re as prepared as possible by acknowledging: 

1. Legal requirements

Since most small businesses don’t have official human resources (HR) departments, speaking to a lawyer or HR consulting business can answer questions about: 

• Any required severance packages or severance pay
• The notice period you must provide to the employee, if any
• Whether you’re at risk of a wrongful termination or unfair dismissal
• The process you should follow
• What to include in your termination letter
• Final paycheck requirements

Since employment laws can vary by location, reaching out to a local professional is one of the best ways to protect your business and ensure you meet legal requirements. 

2. Employee type

Letting go of a subcontractor and an employee are two different things. While a subcontractor may be on a simple, short-term contract, an employee may have a part- or full-time permanent position. 

Ending the relationship with a subcontractor can be as simple as not renewing their contract. But letting go of an employee is more complicated since they rely on you as their main source of income. 

The same goes for hires who are on probation compared to employees who have been with your company for a long time. If you know a new hire isn’t going to work out within a few weeks of hiring them, and they’re on probation, it can be easier to terminate their employment than it is to fire someone who’s completed their probationary period. 

The process and legal requirements will change based on the type of worker you want to fire, so take a look at their contract and tailor your strategy to each one individually. This also comes in handy when you speak to an HR expert or lawyer, since they’ll be able to give you the most accurate and relevant advice for your situation.

3. Termination reason

Firing someone shouldn’t be an emotional decision. That’s why it’s important to determine the reason why you’re letting them go based on real examples and experiences. 

Just like when you hire someone, you can’t make a discriminatory firing decision by terminating their employment based on ethnicity, origin, race, religion, age, gender, sexual orientation, family or marital status, health, or appearance. 

Make sure the reason you want to move forward with firing someone is valid and legal. 

It also helps you make a clear termination letter and explain the reason to the employee, avoiding confusion and keeping communication consistent.

Reasons to terminate an employee

Some of the most common reasons service business owners have to fire employees include: 

1. Performance issue

Low employee performance can mean many different things, such as: 

• Arriving late for work and scheduled jobs
• Taking overly long breaks for lunch or in the middle of the workday
• Failing to complete daily tasks
• Not following standard operating procedures (even after training)
• Providing low-quality services

While many of these issues can be resolved with proper training and performance incentives like employee bonus programs, they don’t always work. If you find yourself having to constantly monitor and manage an employee’s performance, it may be time to part ways.

2. Poor professional conduct

Your employees represent your business out in the field. If they have a bad attitude, behave unprofessionally, or disrespect clients and their properties, you need to address the problem before it impacts your reputation. 

Left unchecked, this can drain productivity, hurt morale, and deter clients from working with you again. 

3. Legal issues

Outside of threatening or violent behaviors, legal issues can include: 

• Theft or fraud
• Forgery
• Lying on a job application
• Sharing sensitive customer information
• Substance abuse
• Harassment or discrimination
• Serious safety violations
• Violence
• Destructive behavior
• Making threats

These kinds of issues are serious and may require swift action, including consulting an HR professional, lawyer, or, in some cases, involving law enforcement. Document these incidents in detail to protect your business and support your termination decision. 

4. No-showing

No-showing is when an employee doesn’t show up for a shift and fails to let you know they won’t be able to come in. Often, this leaves you scrambling to cover their assigned tasks for the day, sometimes even impacting job deadlines and pushing client schedules. 

While one-off no-shows can happen for valid reasons, like family emergencies, employees who frequently miss work hurt your business. Not only do they impact your workday, but they can also contribute to team burnout and cause clients to leave negative reviews. 

READ MORE: How to respond to a negative review

5. Not enough work

Seasonality and demand significantly affect payroll. If revenue forecasting indicates that your cash flow is trending down in the coming months and you can’t afford to keep all of your staff on, you may need to make some hard decisions. 

For example, you may need to let go of less experienced staff or your lowest-performing employees to ensure your business is running as efficiently as possible. 

6. Team compatibility issues

Sometimes an employee’s values, attitude, or work style don’t align with your business, even if their skills are solid. A single toxic or disengaged employee can hurt morale and productivity for the whole team. 

For example, someone who constantly complains, refuses to follow standard workflows, or clashes with other employees. 

If you’ve made an effort to address behavioral or compatibility issues and nothing has changed, it may be time to part ways. 

But be cautious. Firing someone because they aren’t a fit is harder to document than performance or conduct issues. Make sure to check with an HR consultant or seek legal counsel before moving forward.

Steps for how to let an employee go

Once you decide to move forward with an employee termination, follow these steps to ensure the process goes as smoothly as possible: 

1. Address the problem early

Some issues can be addressed with good communication. Having a conversation with an employee about the problem gives them a chance to fix it before it becomes a reason to fire them. Like if they’ve been late a few times and it becomes a pattern.

It also shows you made a fair effort to resolve the issue before moving forward with termination, which can be helpful in the event of a legal dispute. 

For example, if the reason they’re always late is that they have to drop their kids off at school, you could offer a schedule adjustment. 

If they’re still late every day, even after you’ve brought up the issue and offered solutions, they may not be the right fit for your business. 

When you speak to an employee about a problem, document the conversation in their file so you have a record of the date and what was discussed. If the problem continues, you’ll have the documentation you need to proceed with a termination. 

2. Prepare documentation

Based on the reason for termination, gather documentation, such as: 

• Performance reviews
• Warning letters
• Notes and written feedback
• The employee’s original contract

Based on any legal advice you received, determine whether they’re entitled to a notice period, severance package, or final paycheck. 

You also need to provide a termination letter that includes: 

• The employee’s name, position, and termination date
• The reason for the termination, including references to any prior warnings
• Detailed information about their final paycheck, severance, and notice period
• A reminder of any confidentiality clauses from their original contract
• Any legal details, like a non-compete clause (if applicable)
• A place for the employee to sign
• Information about who the employee can contact with questions

3. Schedule a private meeting

Next, schedule a private meeting with the employee in a quiet, confidential space. If possible, have a manager, HR representative, or witness present as a precaution. 

Clear your schedule, put your phone on silent, and do your best to prevent interruptions.

Pro Tip: Schedule the termination meeting when the fewest people will be in the office, like early morning or late afternoon. This gives you more privacy and allows the terminated employee to avoid awkward conversations and limits disruption if they cause a scene. 

4. Deliver the news

Some small business owners simply read the termination letter to the employee, while others follow a simple script. However you approach delivering the news, be clear, calm, and professional. 

Avoid arguing, debating, or too much back and forth. Your job is to let them know their employment is ending and to give them a reason why. Beyond that, you want to keep the conversation from getting out of hand. 

If they need a few minutes to process the news, you can step out of the room until they’re ready to go. Receiving this kind of news can be hard to digest if they weren’t expecting it, so try to be patient and understanding.

5. Explain logistics

Once they’re ready to talk logistics, let them know what the offboarding plan is. 

For example, make sure to explain: 

• When their benefits end
• How any unused personal time off will be handled
• When/if they will receive a final paycheck, and how it will be delivered
• Any last-day procedures, like dropping off a company vehicle and office keys
• If it’s an immediate termination or you’re giving them a notice period
• When access to software logins and email will be revoked

Pro Tip: Make leaving as easy for you and your departing employee by having an offboarding plan in place before you meet. For example, if they came to work in a company vehicle that they will no longer have access to, offer to pay for their cab home. 

6. Listen to what the employee has to say

After you’ve covered everything you need to, give the employee a chance to speak. They may have questions, need clarification, or simply want to explain their side of the story. 

Whatever they have to say, listen respectfully and avoid interrupting them. You don’t have to agree with them or change your decision, but allowing them to share their perspective makes them feel heard and can reduce tension. 

If you can’t answer valid questions on the spot, let them know you’ll follow up once you’ve confirmed the details. 

7. Collect company property

Company property doesn’t just include tools, equipment, and company vehicles. It also covers software logins, uniforms, and gas cards. 

If the employee is expected to leave the day you fire them, make a list of all the items you need to recover and work through it together. 

If you’re giving them a notice period, clarify when company property must be returned by and how they can get it back to you. 

8. File a record of the termination

After you go over the details and give the departing employee an opportunity to ask questions, have them sign the termination letter. 

Then, add it to a record that includes: 

• The date
• Who attended the meeting
• What was communicated

This should be added to the employee’s file with any other relevant documentation, such as performance reviews, warning letters, etc. This way, if any issues arise down the road, you have records to back you up.

Pro Tip: If the departing employee refuses to sign the termination letter, note it on the document and file it as normal. It will still be valid even without their sign-off. 

9. Notify your team

The last thing you need to do is inform the rest of your coworkers about the staffing change. How you relay the message can impact morale, so do your best to: 

• Be professional 
• Avoid sharing private or personal details
• Reassure the team about their own job security
• Stick to the facts
• Let them know the next steps

For example, who will take over the former staff member’s duties, and whether you’ll be hiring a replacement. 

It’s also helpful to give them a chance to ask questions and to let them know they can come to you with any concerns as they arise.

What to say when firing someone

Knowing what to say to an employee during the termination process can be challenging. 

Depending on the reason you’re firing someone, use one of these scripts to get an idea of how to communicate an employment termination to a staff member. 

1. Termination script for poor performance

Unfortunately, your employment with [company name] is ending. Despite coaching and additional training from your crew leader, we haven’t seen the improvements needed in customer service and attention to detail.

2. Termination script for unprofessional conduct

I’m sorry, [employee name], but your employment with [company name] is ending immediately. We’ve observed repeated instances of unprofessional behavior towards clients and team members, which go against the standards we expect. To maintain a positive and productive work environment, we are moving forward with terminating your employment. 

3. Termination script for legal issues

Your employment with [company name] is ending immediately due to a violation of company policies. 

4. Termination script for no-shows

Unfortunately, your employment with [company name] is ending due to repeated unexcused absences from scheduled work. Regular attendance is essential for meeting client needs and supporting the team.

5. Termination script for lack of work

I’m sorry, but your employment with us is ending due to a lack of work. We’ve had to make difficult decisions to adjust our team size to meet reduced demand, and, unfortunately, your position is being eliminated. 

6. Termination script for team compatibility issues

Unfortunately, we are ending your employment with [company name]. After evaluating the role and your fit within the team, we’ve determined this isn’t the right match.

Best practices for firing someone nicely

Firing someone is never easy. It can be stressful and emotional for everyone involved. To keep things professional and under control, follow these best practices. 

1. Stay neutral

No matter the reason for firing, avoid accusatory language and pointing fingers. You’ve already decided to terminate the position—there’s no need to make the team member feel worse or start an argument. 

This doesn’t only apply to what you say, but how you say it. Keep your tone calm, respectful, and professional. 

2. Show empathy

Being fired can be painful. After all, your employee will be losing the income they rely on to pay their bills. Try to remember that this isn’t the outcome either of you hoped for when you first hired them. 

If they have questions, do your best to answer them, but avoid anything that could make the situation worse. 

For example, if they ask about when to expect their final paycheck, tell them. But if they want to dive deeper into the reasons behind their termination, stick to the basics. 

3. Use it as a learning opportunity

After the termination, reflect on what went wrong so you can avoid a similar situation in the future. 

For example, consider whether you should: 

• Improve your hiring or onboarding process
• Provide more training for specific tasks
• Create an employee handbook for staff members to follow
• Try to attract better employees when hiring  
• Change your termination process

At the end of the day, there’s only so much you can do to fire someone nicely. But by using the experience to improve your hiring, onboarding, and training process, you can reduce the likelihood of future terminations and have a happier, more motivated team. 

Tools like Jobber help you track employee performance, manage schedules, and keep everyone on the same page, preventing appointment mishaps, miscommunications, and workflow disruptions. That way, you’ll have more time to focus on running your business instead of addressing staffing setbacks.