University of Kwazulu-Natal

Termination Best Practices To Protect Employees And Employers

Bonisiwe Shabane
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termination best practices to protect employees and employers

Terminating an employee is one of the most difficult and significant actions an employer or supervisor can take. It should be approached with careful consideration, as its repercussions extend beyond the employee and the employer. Even when employees recognize that a coworker was underperforming, had a negative attitude, or was not a good fit, a termination can create uncertainty and unease among the remaining staff. Additionally, a termination may lead to a wrongful discharge claim, which, even if not legitimate, can be costly, distracting, and detrimental to workplace morale. Consider the following factors throughout the termination process to ensure that employees’ rights and dignity are protected while also safeguarding your organization’s best interests. First, let’s take a brief look at some important legal issues.

Under the traditional doctrine of employment at will, workers without an employment contract serve at the discretion of their employer. The employer has an absolute right to fire employees “at will” for any reason or for no reason at all—except for reasons that violate anti-discrimination laws. Many federal and state laws place restrictions on termination. Title VII of the Civil Rights Act of 1964 prohibits employers from firing employees for discriminatory reasons or retaliating against employees who oppose any unlawful employment practice or who make a charge, testify, assist,... Similar job protections are extended to employees under the Age Discrimination in Employment Act (ADEA), Family and Medical Leave Act (FMLA), and Americans with Disabilities Act (ADA), which protect them from termination based on... In a perfect world, employees perform optimally, enjoy high job satisfaction, and stay with one company until retirement.

This type of perfection rarely exists. According to the U.S. Bureau of Labor Statistics, the median employee tenure with a single company is 3.9 years. While some staff members resign voluntarily, others are involuntarily terminated. Improper or illegal terminations expose companies to consequential legal issues and financial risk. Employers must attempt to close all possible doors to post-termination litigation to avoid lengthy and expensive legal battles, adverse publicity, and any detrimental impact on employee morale.

Make sure your employees understand their job responsibilities, the company’s policies and code of conduct, any performance issues, and ways to improve their performance. That said, the most important way to avoid litigation is by adhering to all applicable federal, state, and local laws concerning employment. Never fire an employee for an improper or illegal reason. Doing so leads to accusations of discrimination, retaliation, or breach of contract. Emotions run high following an involuntary discharge and some ex-employees are just looking for a fight. While nothing can totally bar former workers from pursuing legal action, employers can take steps to take the wind out of these individuals’ litigious sails.

Get a free trial of Practical Law, the how-to resource with termination best practices, protocols and practical tips for employers on legal risks. The best way to escape a lawsuit it to avoid its inception. Implementing and following proper termination practices minimizes the risk of encountering a wrongful termination claim. Before initiating a dismissal process, employers must understand all applicable federal and state employee termination laws and policy requirements. To protect confidentiality, only include critical individuals in discussions. Fast, easy, accurate payroll and tax, so you can save time and money.

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Labor Laws How to Terminate an Employee Master employee termination with this step-by-step guide for compliance and business safety. Ensure fair, respectful, and legally sound terminations. In September 2024, 5.2 million employees separated from their jobs in the U.S., with 1.8 million of these due to layoffs or discharges​. This high rate of turnover underlines the importance of handling employee terminations carefully and in compliance with U.S. labor law to protect your business.

Terminating an employee is one of the toughest tasks a manager can face. Beyond the emotional and interpersonal challenges, there are complex legal requirements to follow. In the U.S., both federal and state laws regulate the termination process, requiring businesses to adhere to guidelines under U.S. labor law to avoid wrongful termination claims. Illustration by iStock; Security Management The Importance of Planning, Communication, and Dignity in Employee Terminations

When we think of disruptive behavior in the workplace, we usually imagine someone who is overly loud, argumentative, or interrupts the workday in obnoxious ways. However, disruptive behavior in the workplace extends far beyond noisy interruptions—it comprises any actions or patterns of conduct that interfere with normal organizational operations, compromise workplace safety, or hinder the productivity and cohesiveness of... This includes when an employer fires one of its employees. The U.S. Bureau of Labor Statistics estimated that in August 2025 in the United States there was an average of more than 164,000 employment separations every day, both voluntary and involuntary. It can be reasonably inferred that employment terminations, given that can be a stressful event, can escalate into disruptive, dangerous, or even hostile behavior.

Unfortunately, there is currently no comprehensive national statistic that specifically tracks how many of these terminations escalate. It is important to clarify the term at-will employment, as it is often confused with other terms or wrongly defined by laypeople. Firing an employee represents one of the toughest duties business owners and HR managers must confront. Employee termination generates significant stress while draining emotional reserves and creating numerous legal complications. In March 2025 U.S. employers disclosed 275,240 job cuts indicating an alarming 205% growth from 2024.

The problem? Most companies are doing it wrong. Poor handling of terminations can expose your business to costly legal battles, harm your reputation and lower morale among current employees. Employee termination isn’t just about saying goodbye. Employee termination follows a lawful procedure that includes specific requirements that differ depending on the state. Terminating an employee is never easy.

It’s a sensitive process that employers must handle with empathy and adhering to strict legal guidelines. One misstep can have negative legal ramifications, damage your company’s reputation, and create a hostile work environment. This blog post aims to demystify the termination process, providing you with essential “do’s” and “don’ts” to ensure you stay compliant and minimize potential risks. There are two types of employee terminations: Voluntary terminations are by far the easiest to deal with. Employees initiate the process and resign.

Simple as that. These types of terminations can be invaluable, as exit interviews allow the company representatives to have a candid conversation and gather information to improve the organization. Involuntary terminations, on the other hand, are more delicate and must be handled discreetly for two reasons:

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Terminating an employee is one of the most difficult and significant actions an employer or supervisor can take. It should be approached with careful consideration, as its repercussions extend beyond the employee and the employer. Even when employees recognize that a coworker was underperforming, had a negative attitude, or was not a good fit, a termination can create uncertainty and unease among ...

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Under the traditional doctrine of employment at will, workers without an employment contract serve at the discretion of their employer. The employer has an absolute right to fire employees “at will” for any reason or for no reason at all—except for reasons that violate anti-discrimination laws. Many federal and state laws place restrictions on termination. Title VII of the Civil Rights Act of 1964...

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Get A Free Trial Of Practical Law, The How-to Resource

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