Terminating someone’s employment is always stressful, no matter how bad the fit may be for your business. It's a common experience—40% of Americans have been laid off or terminated at least once in their careers.
But some employees take these stressful situations to a dangerous—even violent—place. There are tragic stories of HR professionals in America being assaulted or even killed when a routine termination took a dark turn.
“When an employee is terminated, it’s not just about compliance; it’s about safety, dignity, and the well-being of everyone involved,” says Chandra Kill, CEO of KRESS. “Preparation is key, and that includes understanding the human side of this process.”
When HR professionals prepare to terminate an employee’s employment, it’s common to consult with legal counsel. Too often, though, they don’t think to consult security experts to prepare a plan in case things escalate.
Sometimes, hoping for the best doesn’t cut it. Some procedures for terminating employment are better than others at keeping HR personnel and other employees safe from unpleasant or potentially dangerous situations.
Understanding the Employment Termination Process
What is employment termination? Simply put, it means an employee’s time with a company has come to an end. It’s a process that needs to be handled carefully; it can be emotional, and professionalism matters.
“As leaders, we owe it to our teams to handle terminations thoughtfully,” says Kill. “It’s about balancing empathy with professionalism. A solid process not only protects your company but helps the departing employee feel respected.”
Legal Considerations
In the US, most jobs are classified as "at-will," meaning either the employer or the employee can end the working relationship at any time for any legal reason, although employment contracts or collective bargaining agreements may outline specific procedures that must be followed.
Employers must not make termination decisions based on protected characteristics like race, religion, gender, age, disability, or other protected statuses or risk violating anti-discrimination laws. Ignoring these legal protections can lead to claims of wrongful termination, with these types of lawsuits costing companies up to $100,000, depending on the situation. The financial risk is just one part of the story. “Compliance isn’t just about avoiding lawsuits,” Kill explains. “It’s about creating trust in your workplace. Employees notice when you follow the rules—and when you don’t.”
Employers with 20 or more employees also have additional responsibilities under COBRA. This federal law requires offering eligible employees the option to continue their group health coverage after termination. Make sure COBRA notices are sent promptly to comply with the law.
Types of Employment Termination
There are different types of employment termination, each with its own rules and challenges.
Type | Description | Key Considerations |
Voluntary Termination | The employee decides to leave, such as resigning or retiring. | Keep clear records of resignation letters or retirement notices. |
Involuntary Termination | The employer decides to end the role, often for performance issues, layoffs, or misconduct. | Follow company policy and document all reasons to avoid disputes. |
Mutual Termination | Both the employer and the employee agree to end the working relationship. | Ensure agreements are documented and respectful for both parties. |
Constructive Dismissal | The employee resigns due to intolerable working conditions, which could lead to legal consequences. | Be cautious of workplace conditions that may trigger claims of constructive dismissal. |
What to Know About Collective Bargaining Agreements
If an employee belongs to a union, a collective bargaining agreement (CBA) may guide the termination process. These agreements spell out the rules both the employer and the employee need to follow.
CBAs often include things like:
Steps to take before a termination, such as giving warnings or holding a hearing
How and when to notify the union about the decision
Protections to make sure employees are treated fairly
It’s important to follow the agreement, as ignoring it can lead to disputes or legal trouble; seek expert advice if needed!
Recognizing the Warning Signs
Workplace violence is rare but real. In Cincinnati, Ohio, a fired Little Caesar’s Pizza employee critically wounded her manager after being refused her job back. In Illinois, an employee at Winner’s Freight fatally shot his boss and injured a coworker when he learned he was being let go.
Before you end someone’s employment relationship, look for warning signs that the situation could turn heated or violent. Some signs are obvious, like abusive language or clenched fists. But others might be more subtle:
Chronic conflicts with coworkers
Mood swings or anger control issues
Paranoia or feelings of persecution—playing the victim
A history of workplace or personal conflicts
Difficulty letting go of small disputes
An obsession with guns, weapons, or violent events
Sudden changes in work habits or grooming
Signs of stress, depression, or suicidal thoughts
Major life problems, like divorce or legal troubles
“If you see warning signs, don’t dismiss them,” Kill advises. “Bring in experts to assess the risk and develop a safety plan. It’s better to overprepare than to regret not acting.”
Preparing for Termination
Reviewing the Employee Handbook and Company Policies
Your employee handbook and company policies should outline how terminations happen, including the reasons for termination, how to notify the employee, and what paperwork is needed.
Make sure the steps in the handbook have been followed and that the decision aligns with company policies. Taking time to review these resources does a lot for employers:
Make sure you align with labor laws and avoid violations.
Reduce the chance of wrongful termination claims or other disputes.
Show fairness and professionalism to employees and the wider community.
It makes the process predictable and easy to understand.
Provide evidence that policies were followed if legal issues arise.
Documenting Incidents and Performance Issues
Keeping detailed records of incidents and performance issues is a key part of the termination process. Employers should track what happened when it happened, and who was involved. You'll want to maintain documentation on performance reviews and feedback sessions, any warnings or disciplinary actions, and any contracts or agreements related to unsatisfactory performance.
This kind of information serves several purposes:
It supports the decision to terminate the employee, providing clear reasons for the action taken.
It reduces legal risks, offering evidence in case of a wrongful termination claim.
It shows fairness, demonstrating that a consistent process was followed.
It identifies patterns, highlighting ongoing behavior or performance issues in relation to the employee's work over time.
With proper documentation, employers have a clear record of the employee’s history. This helps avoid misunderstandings, builds a stronger case for the termination, and reinforces that the decision was fair and professional.
Planning Internal Communication
Terminations affect the entire workplace, not just the employee being let go. Plan how to communicate the change to the rest of the team. Keep the message factual and avoid sharing unnecessary details. That being said, balancing transparency with the departed employee’s privacy is important.
It’s also helpful to remind current employees about company policies or processes for raising concerns. This reassures the team that the organization values fairness and professionalism.
Handling References
Decide in advance how the company will respond to reference requests for terminated employees. Some companies opt to confirm only employment dates and job titles, while others provide more detailed feedback.
How to Conduct Termination Meetings Safely
Once the decision to terminate an employee has been made, there are several ways to make the termination meeting and next steps as smooth as possible.
Steps for a Safe and Respectful Termination Process
Step | Details |
Act quickly | Once the decision is made to terminate employees, complete the task without delay. Limit the employee’s contact with supervisors and coworkers. |
Choose the right location | Use a private room near an exit. This ensures a quick and discreet departure if needed. |
Have security nearby | Position security staff close by but out of sight unless their presence is required. |
Maintain dignity | Avoid public embarrassment. Treat the employee respectfully and keep the conversation professional. |
Respond to threats seriously | Document any threatening statements or behavior. Hire security officers if needed to protect staff after termination. |
Time the meeting carefully | Schedule the meeting at the end of the workday to reduce the number of employees present in case of escalation. |
Limit future visits | Mail final paychecks and arrange to send uncollected personal belongings to the employee’s home to avoid unnecessary workplace visits. |
Keep it brief | Stay to the point. Explain the decision, avoid back-and-forth debates, and be clear about next steps. |
Highlight support | Discuss severance benefits, outsourcing help, or unemployment options if available. |
Remember to be brief and direct. Avoid back-and-forth debates, and emphasize any severance benefits or unemployment assistance the employee is entitled to.
While not required, conducting an exit interview is a good practice. It can offer valuable insights into the employee’s experience and help identify potential issues within the company. These conversations also reduce the risk of misunderstandings or disputes later on.
Post-Termination Steps
Finalizing a termination involves several steps to protect your business, respect the employee, and avoid future issues. “Every step matters,” says Kill. “A clear and professional conclusion to the process protects your business and leaves the employee with dignity intact.”
1. Handling Financial Matters
Start with any financial matters. If the employee has accrued benefits like unused vacation time, calculate the payout and make sure they get it on time: state laws and company policies often have specific rules for this. For example, in Colorado, employers must pay all wages and compensation, including accrued vacation, either immediately upon termination or within 24 hours if same-day payment isn’t possible.
If stock options or equity are involved, check the terms of the agreement. Let the employee know what happens next with those benefits. Clear communication here helps prevent confusion or frustration.
2. Updating Access and Systems
Next, take care of system access. Remove the employee’s logins to company platforms, shared drives, and email accounts right away. If they managed any social media or external accounts, update those credentials too. This step keeps everything secure and avoids any hiccups.
3. Collecting Company Property
Now it’s time to collect company property. If the employee is on-site, collect items like laptops, ID badges, keys, or other equipment before they leave.
For remote employees, you’ll need a secure way to get everything back. This might mean sending them a pre-paid shipping label or arranging a pickup. Having a checklist of expected items can make this process smoother for both you and the employee.
4. Offering COBRA Health Coverage
If your business has 20 or more employees, COBRA requires that you offer the terminated employee a chance to keep their health insurance temporarily. Be sure to send the COBRA notices and let them know how to enroll if they choose to.
5. Reviewing Agreements
If the employee signed any non-compete or non-disclosure agreements, now is a good time to review those terms with them. Remind them of what’s still in effect and why it matters.
Support for Departing Employees
Even in difficult situations after a termination of employment, offering support can ease tensions. Consider:
Severance packages. While not required by law, offering a severance package in the termination meeting shows goodwill and helps with their transition. Provide reassurance that their final paycheck will be received in a timely manner.
Unemployment benefits. Explain their rights and how to receive unemployment benefits-temporary financial assistance to people who are unemployed through no fault of their own and are actively seeking new employment opportunities.
Job search assistance. Small gestures, like sharing resources or resume tips, can leave a positive impression.
These efforts show respect and may reduce the risk of conflict or legal claims while also providing necessary support to terminated employees during their transition.
The Risks of Getting Employee Terminations Wrong
Letting someone go is never easy, and mistakes in the process can create bigger problems and even legal repercussions. Ignoring the rules or mishandling the details can lead to:
Legal action if the employee believes they were fired unfairly or for illegal reasons, like discrimination.
Reputational damage for the company, making it harder to attract top talent in the future.
Decreased employee morale and decreased productivity from employees due to mistrust or fear of job security.
The best way to avoid these risks is to follow a clear process. Stick to company policies, document everything, and consult legal counsel if you’re unsure about anything. Doing it right protects your business and shows fair professionalism.
Special Termination Situations
Certain terminations require extra planning. Terminating a remote employee comes with unique challenges. Plan how to retrieve company equipment, such as laptops or phones, and ensure the employee’s access to systems is promptly revoked. Virtual termination meetings should follow the same respectful tone as in-person ones. Letting go of executives often involves complex contracts, severance agreements, and public relations considerations.
Employee Termination FAQs
What does it mean to terminate an employee?
Employee termination ends their working relationship with the company. It may be voluntary, involuntary, or mutual.
Is termination the same as being fired?
“Fired” often refers to termination for cause, like poor performance or misconduct. Termination can also include layoffs or voluntary resignations.
What should I say to terminate an employee?
Be brief, clear, and professional. Explain the decision, outline the next steps, and offer any support they’re entitled to, like severance pay or unemployment benefits.
What are some reasons employees are terminated?
Common reasons include poor performance, gross misconduct, economic layoffs, or restructuring. Each requires proper documentation and adherence to company policy.
What happens if an employee is wrongfully terminated?
Wrongful discharge occurs when an employee is let go for illegal reasons, like discrimination. In these cases, the employer may face legal consequences.
Do I have to give a final paycheck immediately?
Federal law doesn’t require immediate payment, but state laws vary. Some states mandate final paychecks on the last day of work.
What if the employee is still in their probationary period?
During a probationary period, an employee may be terminated for any reason as long as it is not discriminatory or unlawful. However, it is important for employers to clearly communicate the expectations and reasons for termination during this period.
KRESS Helps You Keep Terminations Safe
Terminating an employee is hard, but it doesn’t have to put your workplace at risk. At KRESS, we’re here to help you every step of the way. From background checks to compliance support, we’ll help you protect your team and your business.
Contact KRESS today to create a safer, more secure workplace.