Key Takeaways:

  • Gather documentation to support the decision to terminate
  • Check legal compliance and laws for termination
  • Craft an effective and concise employee termination script
  • Choose a private place for the termination meeting
  • Stick to the script and explain next steps for the employee

Whether you are a business owner, a manager at a company or a HR professional, one of the most challenging tasks that you may face in the workplace is firing an employee. Thankfully, there are effective employee termination scripts that you can use to respectfully part ways with an employee. 

In this guide, you will find the best practices for terminating employees–starting from legal compliance to ready-to-use scripts for having the termination meetings and conversations.

Why Do You Need An Effective Employee Termination Script?

It’s never easy telling an employee that their services are no longer needed, no matter what the circumstances. Sometimes, you may have to terminate an employee for reasons beyond your control–such as if the company has to downsize due to profitability issues or economic decline. Sometimes, you may have to fire an employee for poor performance or for not complying with your company’s rules and regulations. 

Regardless of the reason, employee termination is a sensitive issue with serious consequences for both the employee being fired, as well as the manager or HR professional who has to deliver the news. Below are some common challenges–some legal, some emotional–that you may face when terminating an employee. 

  • Damage to the company’s reputation if the conversation is not handled with sensitivity.
  • Highly emotional reactions from the employee being terminated.
  • Possibility of lawsuits if the termination is found to be wrongful or in violation of legal guidelines.

Preparation For Termination: Steps To Fire An Employee

Before firing an employee, you must know the proper steps for preparing an employee termination. To help you out, we have prepared a simple checklist you can follow.

Step 1: Gather Documentation And Communicate Clearly

Employees should not be surprised when they are told they are being dismissed permanently. If you are firing an employee for poor performance or not complying with company rules, first communicate your issues clearly to give the employee a chance to improve. If that fails, gather and present the necessary documents during the termination meeting.  

These documentation could include performance reviews, peer evaluation, records of behavior or any documentation that justifies the reasons for terminating an employee. Doing this will give you legal protection and also help ensure that the decision to fire is being made fairly and objectively.

Step 2: Ensure Your Decision Is Consistent With Legal Compliance

As we mentioned earlier, it’s important to make sure that you are following all the laws and requirements for firing an employee according to your jurisdiction, as well as the employee’s contract. If needed, you can choose to consult with legal experts to avoid any lawsuit from a wrongful termination.

Step 3: Pick The Right Time And Place For Termination Meeting

Once you are sure about your decision to fire an employee, you must make sure to pick the right time and place to have the employee dismissal conversation. Avoid announcing the decision in public, or in the middle of a workday, as it may cause unnecessary stress and tension in the workplace. Try to schedule the meeting in a private room near the end of the workday to minimize the stress on the employee, as well as to give them more privacy. 

Step 4: Be Firm And Concise In Your Dialogue

While it’s important to show respect and empathy, not maintaining professional boundaries could lead to an unnecessarily difficult conversation. The kindest and most respectful way to fire an employee is to be firm and concise in your employee termination dialogue. 

Crafting The Termination Script: Do’s And Don’ts

Now that you know what steps to follow for firing someone on your team, let us take a look at how you can craft a script for terminating an employee effectively. 

Using an employee termination script can be very useful to help you stay on track and make sure you have covered all the necessary points. Your script must have the following elements:

An Opening Statement

The best way to begin the employee termination dialogue is with a clear and direct statement. Below is one example script you can use to start the conversation. 

“Hello [Employee Name]. Please have a seat. I am afraid we need to discuss your employment with [Company Name].”

Explanation For Termination

Once you have started the meeting, you should quickly inform your decision to the employee and back it up with factual evidence to support the termination. This is where the documentation you have gathered may come in handy.  

Make sure to keep a professional tone and stick to factual evidence instead of personal opinions. Below is an example script. 

“After reviewing your performance from [insert date] and evaluating it carefully, we have decided to terminate your employment. While you have many valuable skills, I must regretfully inform you that your performance has not been meeting our company’s standards, which is why we have to let you go.”

Explain What The Next Steps Would Be

When terminating an employee, it’s important to clearly mention what the next steps will be so that it is easy for all parties to go their separate ways. This includes settling any severance pay, benefits information, and starting the process for returning company property. For example: 

“As outlined in your contract, you will receive a severance package and benefits for [insert duration]. We will provide you with details on how you can access your benefits. We will also need you to return company properties and materials, such as [insert list of things the employee needs to return].”

Closing Statement

Once you have made your decision clear and explained the next steps, you should end the conversation respectfully. Below is an example script you can use. 

“I understand this is difficult news to hear. If you have any questions, please let me know and we will help make this transition as easy as possible.”

Do’s and Don’ts: Effective Phrasing for Termination Scripts

While crafting your employee termination script, make sure to use the right phrases. Below are some do’s and don’ts to help you out.

  • Do: Use neutral language and focus on the facts. Maintain a calm and empathetic tone throughout the conversation.
  • Don’t: Avoid using ambiguous language or making statements that could be interpreted as promises or opinions. Do not engage in arguments or let emotions drive the conversation.

Important Tips For Conducting The Termination Meeting

Conducting the termination meeting can be a daunting task. To make it easier for all parties involved, here are some tips you can follow:

  1. Maintain eye contact and speak clearly.
  2. Stick to the script as closely as you can to avoid getting into problematic topics.
  3. Be prepared for a highly emotional reaction. Listen to the employee patiently and stay composed, but do not offer emotional support or backtrack on the decision.
  4. Once all necessary information has been communicated and all questions from the employee have been answered, bring the meeting to a close respectfully. 

Legal And Ethical Considerations For Terminating An Employee

As we mentioned earlier, there are legal and ethical considerations for terminating an employee, which can vary by jurisdiction. Make sure to review the laws governing employee termination in your area, and carefully evaluate the decision to fire with factual evidence to avoid legal and ethical challenges.

Aftermath: How To Handle The Post-Termination Process

Once the termination is complete, you can notify the remaining team members about the decision, but make sure to do so respectfully. Avoid going into too many details or sharing personal opinions, and focus on reassigning tasks to avoid disruptions in the workplace.

You will also need to make sure that all company properties have been returned. You can use this employee termination checklist to make sure the process goes as smoothly as possible.

Terminating an employee is never an easy task, but by using a respectful and legally compliant script, you can part ways without any issues. If you need additional help, you can check UpCounsel’s free legal documents for more resources.

FAQs

What do you say when terminating an employee?

Stick to facts, explain the reasons for termination and next steps.

What is the best wording for termination of employment?

Use neutral, non-emotional language that focuses on the facts and avoids personal opinions.

How to fire an employee gracefully?

Prepare thoroughly, conduct the meeting in a private setting, and use a well-structured script to guide the conversation.

What to say when eliminating a position?

Explain the reasons behind the decision, and make it clear that it’s not a reflection of the employee’s performance.