And other bad ways to fire an employee
Running a business means juggling revenue, operations, clients, and people—often all at once. When you realize an employee needs to be let go, it can feel like one problem too many. That’s understandable. But terminations deserve the same planning and care as any other high-risk business decision. Handled poorly, they invite unnecessary legal exposure. Here are a few common missteps to avoid:
- Avoiding the ‘why.’ ‘Sorry, this just isn’t working out’ may feel kind, but it creates problems. When you fail to explain the legitimate business reasons for termination, the employee will fill in the blanks—and never in your favor. If a claim follows, explanations offered after the fact often sound like excuses. You can be professional and respectful while still clearly stating the business reasons behind the decision. If you can’t articulate them, that’s a signal to pause and get advice.
- Delegating the dirty work. Handing the termination to a manager or supervisor to avoid discomfort is tempting—and risky. From the employee’s perspective, it looks evasive. From a liability standpoint, it’s dangerous. You can’t control what someone else might say in the moment, but you can control your own messaging. Owners should handle the hardest conversations themselves.
- Offering severance with no strings. Severance can be smart and compassionate, but only when tied to a written release of claims. Even though the law doesn’t require severance, it allows you to exchange it for certainty. The more generous the offer, the more important it is to ensure you receive something meaningful in return: protection against future claims.
- Forgetting past promises. Many business owners are effective salespeople, and that can backfire internally. Statements made during hiring or promotion discussions, even if informal or unwritten, can have legal consequences. Promises about job security, advancement, or ownership deserve careful consideration before termination. In the hands of an aggrieved former employee, those promises can become leverage.
- Waiting too long. Delaying a termination rarely improves outcomes. Worse, the final event that triggers action may give the employee legal protection, especially if a medical issue or accommodation request is involved. Tolerating policy violations for months or years weakens your position when you finally decide to act.
This doesn’t mean you can’t fire employees. It means termination requires forethought, consistency, and clear communication. As a business owner, you manage risk for a living. Apply the same discipline when making one of the most consequential decisions an employer can make. If you’d like to talk through the strategy before taking action, we’re here to help you do it right
