How to terminate an employee: 3 sample scripts

Terminating an employee is one of the most challenging responsibilities managers face. It's a complex, emotionally charged process that requires careful planning, clear communication, and strict compliance. Getting it wrong can lead to legal issues, damaged morale, and a tarnished employer brand.

Despite these challenges, terminations are sometimes necessary for the well-being of your team and company. Whether it's due to performance issues, misconduct, or restructuring, handling dismissals professionally is a key management skill.

In this guide, you'll learn the best way to terminate an employee, including best practices to follow before, during, and after a termination. We'll also provide real-world scripts showing what to say when dismissing someone, so you can navigate difficult conversations with confidence. Keep reading.

Reasons to terminate an employee

Before considering termination, it's important to have clear, documented reasons that justify ending the employment relationship. The reason for termination must be based on concrete facts and violations of company policy, not subjective opinions. Firing someone for illegal or discriminatory reasons can lead to wrongful termination claims.

In most cases, termination should be a last resort after other interventions, such as:

• Performance improvement plans to address skill or productivity issues
• Written warnings for policy violations or behavioral concerns
• Coaching or additional training to resolve minor performance gaps
• Transfer or demotion to a role better suited to the employee's abilities

However, some severe infractions warrant immediate dismissal. Here are some common grounds for terminating an employee:

• Consistent poor performance with no improvement after feedback
• Serious misconduct, like harassment, violence, or theft
• Falsifying records, like timesheets or expense reports
• Breach of confidentiality, like sharing trade secrets
• Refusal to follow management's reasonable instructions
• Excessive unexcused absences or chronic tardiness
• Company restructuring or position elimination

10 best practices for terminating an employee

Firing someone is never easy, but following these steps can help it go as smoothly as possible:

1. Review company policies and employment contracts

Before initiating a termination, carefully review your company's policies and the employee's contract. Ensure you're following the proper disciplinary procedures and that the reasons for firing are consistent with company policy and the employee's agreement.

2. Document performance or behavior issues

Build a clear, objective record of the issues leading to the termination. Document specific examples of poor performance, policy violations, disciplinary actions taken, and the employee's response. This paper trail is crucial for justifying your decision and protecting against legal claims.

3. Plan the termination meeting

Choose a private location and schedule the meeting thoughtfully. While the end of day or week often works well, consider your company's protocol for the transition period—whether immediate departure or a planned handover. Before the meeting, prepare your key talking points and practice delivering them in a calm, concise manner.

4. Have a document checklist

Prepare all the documents you'll need for the termination meeting and after. These may include:

• Termination letter stating the reasons and effective date
• Final paycheck and explanation of accrued benefits
• COBRA or health insurance information
• Non-compete or non-disclosure agreements
• Company property return forms

5. Prepare a termination letter

Draft a termination letter that clearly states the decision, reasons, and logistics. Have it reviewed by HR and legal counsel to ensure it's compliant and contains all necessary information. Be specific but concise.

6. Ensure compliance with local laws

Termination laws vary by state and country. Some require specific notice periods, severance pay, or termination procedures. Work with HR to understand and follow all applicable regulations, including final pay and benefits requirements.

7. Communicate clearly and respectfully

During the termination meeting, deliver the news directly and humanely. Use clear, unambiguous language so there's no confusion about the decision. Explain the reasons objectively, referring to policy violations or performance gaps. Listen to the employee's response, but avoid getting drawn into a debate.

8. Consider the timing of the termination

Be mindful of the termination's timing and potential impact. For example, don't fire someone right before their wedding or a major holiday. If possible and when required, give adequate notice and severance pay to help with the transition. Follow company policy and contracts on termination notice periods.

9. Retrieve company property

Before the employee leaves, collect all company-owned devices, keycards, uniforms or other property. Be sure to revoke systems access and change relevant passwords immediately to protect confidential data and intellectual property.

10. Provide transition support

While you're ending the employment relationship, it's still important to treat the employee with respect and empathy. Offer support like job placement assistance, reference letters, or counseling services to help them transition. How you treat exiting employees affects your reputation as an employer.

6 don'ts for dismissing an employee

Just as important as what to do when firing someone is what not to do. Avoid these common missteps:

1. Don't terminate in a public or inappropriate setting

Never fire employees in front of others or in a public space. It's humiliating for the employee and makes you look unprofessional. Always hold termination meetings in a private room with a door you can close, like a conference room.

2. Don't overlook final pay and benefits information

One of the worst things you can do is leave a terminated employee in the dark about their final compensation. Not paying out earned wages and accrued time off is illegal in most places. Always provide clear documentation of what the final paycheck will include and when they can expect to receive it.

3. Don't terminate employees alone

As awkward as it may feel, always have an HR representative or another manager present as a witness for the termination meeting. This protects you from false claims about how the meeting went and ensures you follow proper procedures.

4. Don't discuss the termination with other employees

Never share the details of someone's termination with their coworkers or anyone without a legitimate need to know. Gossip fuels an unprofessional, toxic culture and can even lead to defamation claims. Keep the reasons and circumstances confidential.

5. Don't ignore employee rights

Even when someone is being fired for cause, they still have basic rights. These might include the right to unemployment benefits, COBRA insurance, or a final paycheck by a certain date. Denying these rights is illegal and unethical. Inform the employee of their entitlements and how to exercise them.

6. Don't delay communication of the termination

It may be tempting to put off a difficult termination conversation. But waiting too long to inform an employee they've been fired can open you up to legal issues. As soon as the decision has been finalized with all stakeholders, notify the employee promptly according to company policy.

How to terminate an employee: 3 scripts

Let's look at some real-world examples of how to fire someone nicely. While the specifics will vary, these scripts show how to deliver the message clearly and compassionately.

Script for terminating an employee for performance issues

"Hi Sarah, thanks for meeting with me. I asked you here because we need to discuss your performance in the Marketing Coordinator role. As you know, we've talked several times over the past six months about the core skills and productivity levels needed for this position. While I know you've been trying, we still aren't seeing the improvement we need.

We provided a performance improvement plan 60 days ago with clear and measurable goals. But based on our last review, those goals haven't been met consistently. Your work continues to require substantial oversight and correction from your manager.

I'm sorry to say that we've made the difficult decision to terminate your employment with ABC Company as of today. Please know this isn't a reflection of you as a person. We greatly appreciate your positive attitude and creativity. However, we need to ensure this role is filled by someone who can meet its demands.

We'll provide two weeks of severance pay to help with your transition. Your final paycheck will include that severance and your accrued vacation time. We've prepared a reference letter highlighting your strengths to aid in your job search. HR will follow up with more details on your benefits and next steps. Please return your laptop and keycard by Friday.

I know this is tough news. If there's anything we can do to support you, please let us know. We wish you all the best."

Script for terminating an employee for misconduct

"Good morning John, please have a seat. We need to have a serious conversation about your behavior at work. As you're aware, XYZ Corp has strict policies prohibiting harassment and discrimination.

It has come to our attention that you've made repeated offensive comments to your coworkers, even after being asked to stop. Several team members have reported feeling uncomfortable and disrespected by your jokes targeting religious and ethnic minorities.

We take these complaints very seriously. Your actions violate our Code of Conduct and create a hostile work environment. We have zero tolerance for harassment. As a result, we've made the decision to terminate your employment with XYZ Corp, effective immediately.

Please understand that this decision is final. Today will be your last day. HR will provide your final paycheck, including pay through today, and information on your COBRA benefits. We'll need you to return your badge and office keys before leaving.

I know this may come as a surprise, but we cannot allow this behavior to continue. We have a responsibility to provide a safe and respectful workplace for all. Please take this as an opportunity to reflect and learn. If you need support, our EAP program is available for the next 30 days."

Script for terminating an employee for restructuring reasons

"Hi Mike, thanks for coming in. I'm afraid I have some difficult news. As you know, our company has been going through significant changes to adapt to market conditions. We've had to make some tough decisions to remain competitive and sustainable.

After careful consideration, we've determined that we need to eliminate several positions, including yours, effective two weeks from today. Please understand that this decision is not a reflection of your performance or value. Your work has been consistently strong. This is strictly a business decision driven by our need to restructure.

We want to support you in this transition. You'll receive a severance package including eight weeks of pay and job placement assistance. We're also happy to provide references for your job search.

Your last day in the office will be this Friday. Please work with HR to transition your projects and return any company equipment by then. They'll provide details on your final pay and benefits.

I want to sincerely thank you for all you've contributed to XYZ Inc over the past four years. It's been a pleasure working with you. If there's anything I can do to help with your job search, please don't hesitate to ask.

I know this is a lot to process. Take the rest of the day off if you need it. And please know that my door is always open if you want to talk further."

Automate workforce and employee management with Rippling

Employee terminations are one of the most difficult but necessary parts of workforce management. They require adherence to complex laws, careful recordkeeping, and impeccable timing. One misstep can lead to costly litigation or compliance penalties.

Rippling's unified workforce management platform takes the stress and risk out of offboarding employees. With Rippling, you can:

• Track and manage employee performance and disciplinary issues in one place
• Generate compliant termination documents like COBRA notices and severance agreements
• Automate deactivation of systems access and benefits for terminated employees
• Offboard employees compliantly across countries with local best practices
• Manage equipment returns with prepaid shipping labels and automated follow-ups

Rippling streamlines every aspect of the employee lifecycle in one intuitive platform, from onboarding and payroll to talent management and offboarding. Its powerful automation and built-in compliance give you peace of mind, no matter your company size.

How to terminate an employee FAQs

What is termination of employment?

Termination of employment is when an employer ends an employee's job, either voluntarily (resignation) or involuntarily (firing). Involuntary termination is when the employer dismisses the employee due to dissatisfaction with performance, misconduct, or business necessity like layoffs.

What paperwork do I need to terminate an employee?

When terminating an employee, you should have:

• Performance reviews, warning notices, or documentation of issues
• Termination letter stating reasons and effective date
• Final paycheck acknowledgment
• Non-compete, non-solicitation, or non-disclosure agreements
• Benefits termination or COBRA notices
• Company property return form

Requirements vary by location, length of service, and termination reason. Consult with HR for specific guidance.

How do you start a conversation to terminate an employee?

Open the termination meeting by thanking the employee for their time and explaining the purpose of the meeting. Use a respectful but direct opening line, like:

"Hi [Name], thanks for meeting with me today. I have some difficult news to share. I asked you here because we need to discuss your employment with [Company]. This isn't easy to say, but we've made the decision to terminate your position effective [Date]."

Then, briefly explain the reasons for the termination, focusing on facts and policy. Share any transition support you're offering. Allow them to react and ask questions, but keep the meeting brief.

[H3] How do you politely terminate an employee?

To terminate an employee professionally and compassionately:

• Have a clear, documented reason for the termination based on performance or policy.
• Hold the termination meeting privately with an HR witness.
• Get to the point quickly and communicate the decision directly but tactfully.
• Briefly explain the reasons, sticking to objective facts, not opinions.
• Listen to their response and acknowledge their feelings, but don't argue.
• Review next steps for ending their employment like final pay and benefits.
• Offer transition support like a reference or outplacement help.
• Thank them for their contributions and wish them well.

The key is to balance firmness with empathy and to treat the employee with dignity throughout the process.

This blog is based on information available to Rippling as of November 4, 2024.

Disclaimer: Rippling and its affiliates do not provide tax, accounting, or legal advice. This material has been prepared for informational purposes only, and is not intended to provide or be relied on for tax, accounting, or legal advice. You should consult your own tax, accounting, and legal advisors before engaging in any related activities or transactions.