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Take care when terminating an employee’s contract

On Behalf of | Oct 15, 2020 | Contract Disputes

Firing someone is never pleasant, however logical the decision may be. People have bills to pay and families to support. Returning home to say they have lost their job will hurt their pride. The way you handle it can make it easier for them. It can reduce the chance they decide to seek retribution through litigation.

How should I fire someone?

Here are some steps you should take when terminating an employee’s contract:

  • Give them warning: When someone fails to pull their weight or makes errors, you need to tell them at the time. You need to offer them help to improve. They should be well aware that losing their jobs is on the cards long before you make your final decision.
  • Prepare to tell them: When you meet with the employee, you need to have all the information to hand. Be clear about the reasons you are terminating their contract, and have their payment arrangements readied.
  • Comply with the laws: Be sure you understand the federal and state employment laws. Errors could leave you liable to litigation. It is best to have two of you in the room, so you have a witness should problems occur later.
  • Inform other workers promptly: You do not need to explain the precise reasons. Outline how they will be affected by the loss of their colleague and how you will move forward as a company. You may also need to inform clients that dealt with the person that they no longer work for you.


People will judge you on how you terminate someone’s employment. You can make it easier for all involved if you do it with grace and dignity.