Firing an employee isn’t an easy thing to do. However, sometimes an employee ends up being a determinant to the organization and needs to be let go. There can be various reasons for this, from unethical behavior, illegal actions, or just not being able to meet the expectations of the job.
Key Takeaways:
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Termination is the process of ending the legal agreement between the employee and employer. That means that they no longer work for the company.
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The reasons to fire an employee range from poor performance or absenteeism to drug use or illegal activities.
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When deciding to fire an employee, it’s important to involve HR and other members of management if you can and not drag the process out.
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There are legal issues to consider when terminating someone’s employment. Discrimination and retaliation are legally prohibited, and there are whistleblower laws as well.
What Is Employee Termination?
While in most official communications, it’s referred to as employee termination, it can be referred to as firing an employee, laying them off, or letting an employee go. Termination is severing the business relationship between the employee and employer. This article will be focused on firing rather than laying off, as in termination as a result of poor performance or improper conduct.
Reasons to Fire an Employee
While the process of firing an employee is unpleasant for everyone, there are circumstances that necessitate it. Not all of them are cut and dried; however, there are several different circumstances that can lead to termination.
Here are some reasons to fire an employee:
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Poor performance. This is the reason the majority of employees are let go. Failing to meet key performance indicators (KPIs) and deadlines and a lack of improvement can mean that the employee isn’t right for the job.
In a circumstance where the employee’s job requires them to interact with clients or the public, continual complaints about them can be considered another aspect of poor performance. An organization is not obligated to employ someone who’s a detriment to its reputation and revenue.
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Attendance. If an employee is consistently absent without a valid reason, this can be grounds for disciplinary action up to and including dismissal. Employees need to be fulfilling their duties in their position, and if they’re constantly absent, they won’t be. It’s especially problematic if they pull a no-call no-show.
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Theft. Stealing is unquestionably a fireable offense. What exactly is stolen and under what circumstances can determine if it’s an immediate firing (which it likely will be), another type of disciplinary action, or if it needs to be escalated to the legal system.
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Harassment. Any type of harassment is grounds for dismissal. If an employee is harassing their coworkers, they could be creating a hostile work environment, potentially violating EEOC guidelines and opening the company up to be sued.
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Violence. Any type of violence shouldn’t be tolerated. It’s the leadership’s responsibility to ensure a safe working environment for all of its employees. Violence doesn’t have to be physical violence, either, though, of course, that is unacceptable. But continual shouting, physical intimation, and threats can all legally be considered assault.
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Destruction of company property. Destroying company property is another circumstance that can lead to an employee getting terminated. If the destruction is deliberate, it can be considered violent behavior as well.
But even if it’s accidental, destroying assets is a reason to fire someone. It shows that they’re taking a lack of care in their duties, and in many cases, such recklessness could end up hurting someone.
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Drug use. Most American companies have a zero-tolerance policy for recreational drug use. This is especially important if it’s a job that requires operating heavy machinery, driving, or other duties that require sobriety. Even if your business ignores drug use on personal time, if an employee’s work is affected by it, it may be time to let them go.
It should be noted that some drug use is protected under the Americans with Disabilities Act (AD). Addiction can be considered a disability, and of course, if they need to take medication for a medical condition that causes some impairment, then the situation is different.
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Insubordination. Failure to accept a manager’s authority is a valid reason to fire someone. This typically isn’t done if an employee ignores or overlooks suggestions but if they do something directly against leadership’s instructions. Sufficiently disrespectful or dismissive behavior can also be considered insubordination and be grounds for firing.
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Misconduct. This is a catch-all category that can cover many different types of malfeasance. It can be actuation such as spying for a rival company or committing sabotage, using company property for their own benefit, behaving in a way that reflects poorly on the company, or framing a fellow employee for their own mistakes.
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Dishonesty. While this ties into misconduct, it can be more specific. If you find out that an employee lied on their resume, applied under a false name, or made a point of otherwise lying about what they’re doing and deflecting blame, then that’s dishonest behavior. Acute or continual dishonesty is grounds for termination.
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Sharing of proprietary information. Many businesses have property information that they don’t want to be shared with their competitors. Depending on the nature of the business, the controls on the release of information can be extremely strict. In any case, sharing business secrets is a valid reason to terminate someone’s employment.
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Violations of company policy. While all of the above should be considered violations of company policy, some have more specific requirements that can lead to grounds for dismissal. Some of this will cover how an employee is supposed to behave while at work and expectations like dress code.
Continual violations of the company policy can lead to termination. This can also be inappropriate behavior that doesn’t fit the bill of harassment but is still unacceptable, such as telling off color or racially insensitive jokes at work.
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Bad cultural fit. Sometimes an employee and the company culture just clash. That doesn’t necessarily mean that they’re entirely a bad employee, just that your business is not the place for them to work. If the fact that they can’t adapt to the company culture ends up causing disruptions, it may be best to let them go rather than try to force it.
How to Decide to Fire an Employee
Making the decision to fire an employee isn’t a simple one. In the case of demonstrative misconduct or illegal behavior, it’s simple, but in most cases, it won’t be so obvious. Here are some things to keep in mind when deciding to fire an employee.
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Consider the root cause. If an employee suddenly starts having issues, firing them may not be the right course of action. What caused the problem to occur? Is there a way that you can fix it without termination?
If whatever the root cause is isn’t fixable, or is something that would be more disruptive than losing the employee, then termination is likely the right course of action.
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Consult with others. This action has several benefits. If you’re unsure about firing someone, then asking for input from others can help you understand why you feel the way you do. Just be careful who you involve – it should be other managers or members of HR, in most cases. Not everyone is going to keep the conversation quiet.
However, it is possible to talk to their coworkers without making it known that you’re considering termination. Hearing what their coworker or subordinates have to say about them can tell you a lot that you may not be aware of as a manager.
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Involve HR. The human resources’ job is making sure that the T’s are crossed, and I’s are dotted. There are legal, logistical, and organizational considerations in termination, and HR will know what they are. Make sure that you keep them informed of the circumstances. In some cases, they’ll recommend immediate termination.
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Gather data. Firing isn’t something that should just be done on gut feelings. Make sure that you gather data on the problem so that you are prepared if it comes to firing the person. In many cases, they may try to argue or ask for more information, and this will allow you to navigate all their questions.
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Reflect on your decision. It can be helpful to consider what made you come to the decision to fire someone. This can have the effect of reinforcing your choice or making you less sure of it. You want to be sure that you’re not firing someone just because you don’t like them.
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Don’t drag your feet. Once you’ve decided that you’re going to fire someone, don’t procrastinate. Dragging the process out serves no one, and will just lead to more problems and complications down the line.
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Know the state laws. Different states have different requirements in terms of what employees are entitled to upon termination. Most states have at-will employment, which means that you can choose to let an employee go at any time for any reason – unless it violates nondiscrimination laws.
Some states require a manager to give a reason for firing an employee. Others require that employees be able to access their health care coverage for a time. And a notice of termination is also a necessity in the majority of states.
Here are some pitfalls to avoid when thinking about firing an employee:
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Don’t make the decision unilaterally. You want to involve others. This especially includes HR. It shouldn’t just be your decision alone. It’s also helpful to have a coworker with you during the termination process, if at all possible.
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Being unprepared. Unless it’s an immediate firing, such as if you catch them stealing or assaulting someone, you should be entirely prepared. Have their pink slip ready, as well as all the other information needed for termination.
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Consider the legality. There are illegal reasons to fire an employee. Make sure that your reasoning doesn’t stray into any of these, or your business will be open to a lawsuit and potential punitive action.
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Discrimination. An employee can’t be fired for discriminatory reasons, such as race, ethnicity, sex, sexual orientation, gender identity, being pregnant, or any other protected status. If any of the above even plays a role in your decision to fire, then it’s an illegal firing.
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Whistleblowing. An employee who blows the whistle on illegal or unsafe activities in the workplace is protected by law from termination and retaliation. If this employee has made any claims of that nature – whether or not they have merit – they’re protected, and firing them would be illegal.
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Retaliation. Employers are not legally allowed to retaliate against employees for blowing the whistle, filing discrimination charges, or other complaints of that nature.
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Exercise of employee rights. Any employee right that is covered by law prevents them from being fired for that. For instance, the Family Medical Leave Act. If an employee takes time off to care for a sick relative, they can’t be terminated due to that.
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Firing an Employee FAQ
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Does an employer need a reason to terminate an employee?
No, an employer doesn’t need a reason to terminate an employee if the employment is at-will. If it’s a different form of employment, then employees can only be terminated for the reason that’s covered in the employment agreement.
Some states will require that employers offer a reason for termination within a time period, even if the employment is at-will. Due to that, it’s best to know what the reason is and be able to articulate it.
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What’s the difference between being fired and being laid off?
The difference between being fired and being laid off is that the former is related to either poor performance or misconduct, while the latter is due to budgetary constraints. An organization may have no complaints about an employee’s performance and still lay them off because they can’t pay them.
If someone is fired, then it’s due to their own behavior. It may be that they’re not meeting KPIs, continual absenteeism, improper conduct, or a violation of company policy.
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Is an employee entitled to anything upon termination?
What an employee is entitled to upon termination varies from state to state but typically includes their final paycheck, continuing benefits, unemployment compensation, and – if applicable – severance pay.
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Author
Di Doherty
Di has been a writer for more than half her life. Most of her writing so far has been fiction, and she’s gotten short stories published in online magazines Kzine and Silver Blade, as well as a flash fiction piece in the Bookends review. Di graduated from Mary Baldwin College (now University) with a degree in Psychology and Sociology.
