The Do S And Don Ts Of Conducting Layoffs And Terminations

Lisa Shuster, MBA, SPHR, SHRM-SCP, is the Chief People Officer for iHire, an industry-specific recruitment platform. Google the term “layoffs,” and you’ll see no shortage of articles about companies reducing their workforces, especially in the tech industry. You may also see criticism of the way high-profile layoffs of late have been handled. For example, Elon Musk laid off half of Twitter’s staff via email, and some workers only learned of the news because they were locked out of their computers. More recently, CNN announced its looming layoffs 24 hours before informing impacted individuals, leaving staff members anxious and uncertain about their futures. Is there really a right way to conduct layoffs?

What about involuntary or performance-based terminations? Severing ties with employees the wrong way can put your brand on the map for the wrong reasons, deter prospective employees from wanting to work for you and hurt the morale of your remaining... Prepare to effectively handle layoffs and terminations with these seven do's and don’ts. 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: Employee termination is a challenging and often uncomfortable aspect of managing a business. It’s crucial, however, to navigate this process carefully and adhere to the law to avoid potential legal issues and protect your organization’s reputation. In this blog post, Matthew Miklave of the Law Office of Matthew T. Miklave explores the dos and don’ts of employee termination, highlighting key steps and potential pitfalls to help you make informed decisions while staying compliant with employment laws. Before initiating any termination process, review your company’s employee handbook and established policies.

Ensure that you follow any guidelines or procedures outlined for terminations. Consistency in applying your policies can help you avoid discrimination or unfair treatment claims. Maintain thorough and accurate records of an employee’s performance issues, including written warnings, performance improvement plans (PIPs), and any relevant communication. This documentation can justify the termination decision and protect your company against wrongful termination claims. When delivering the news of termination, do so in a private and respectful manner. Be clear about the reasons for the termination, and provide any necessary information regarding final paychecks, benefits, and the return of company property.

Avoid confrontational or aggressive language during the termination conversation. There’s no easy way to fire someone. Even when the decision is justified, the conversation can be uncomfortable, emotional, and deeply personal. Most managers dread it, not just because they’re unsure what to say, but because they understand what’s at stake. A poorly handled termination doesn’t just affect the person being let go. It can shake the confidence of the entire team, damage trust, and raise questions about how the company treats its people.

Ethical termination practices help protect more than just legal interests. They reflect the organization's character, leadership, and values in moments when those things matter most. “The key to effective, human firing is to focus on how you treat people during the process.” — Joel Peterson, former Chairman of JetBlue Terminating an employee is more than a business decision; it's a human one. How it's handled can have a ripple effect across the organization, influencing morale, trust, and even long-term retention. When termination is conducted with clarity and respect, it sends a message that people are valued, even in difficult moments.

It reinforces accountability while maintaining dignity. And it shows that leadership is willing to do the hard things the right way. The past few years have been a challenging time for many businesses. Economic fluctuations, operational changes, and the rise of AI technologies are reshaping industries. In some sectors, layoffs have become a common part of the landscape. But while layoffs are sometimes necessary for businesses to stay afloat or evolve, they can be a tough process for both the organization and the affected employees.

Handling layoffs with care and professionalism can help maintain morale, protect the reputation of your business, and ensure that the transition is as smooth as possible for everyone involved. Here’s a look at the Do’s and Don’ts of managing layoffs in a way that is respectful, transparent, and supportive. Transparency is key when communicating layoffs. Employees deserve to know why these changes are happening. Whether it’s due to restructuring, economic hardship, or the introduction of AI technology, honesty will help employees understand the situation better. Layoffs can be an emotional and financial burden for employees, especially if they have been with the company for a long time.

Make sure to provide support during the transition. Before terminating an employee, a manager must carefully prepare to prevent misunderstandings and accusations of illegality. Handling the actual firing session must be done with care. How you treat the person could determine if he or she feels wronged enough to file a lawsuit — even if it has no merit. Preparing for a termination session should include these common-sense do’s: It’s stressful having to let an employee go.

But keep in mind that it is your right to fire underperforming or policy-violating workers as long as you have: Knowing you are “in the right” will make the task easier. As the HR Solutions Manager of ComplyRight, Jaime brings her multi-product management experience to forward-thinking HR processes and solutions. Her career in HR began in 2007 as an HR manager at a small marketing firm. Extremely passionate about HR, she is full of ideas to improve HR in small businesses. She is focused on developing next-generation products to replace traditional HR solutions, making HR management easier for employers.

FUN FACT: Jaime enjoys shopping for shoes and handbags, but she is also highly competitive against her friends in their fantasy football league. The past few years have been a challenging time for many businesses. Economic fluctuations, operational changes, and the rise of AI technologies are reshaping industries. In some sectors, layoffs have become a common part of the landscape. But while layoffs are sometimes necessary for businesses to stay afloat or evolve, they can be a tough process for both the organization and the affected employees. Handling layoffs with care and professionalism can help maintain morale, protect the reputation of your business, and ensure that the transition is as smooth as possible for everyone involved.

Here’s a look at the Do’s and Don’ts of managing layoffs in a way that is respectful, transparent, and supportive. Transparency is key when communicating layoffs. Employees deserve to know why these changes are happening. Whether it’s due to restructuring, economic hardship, or the introduction of AI technology, honesty will help employees understand the situation better. Layoffs can be an emotional and financial burden for employees, especially if they have been with the company for a long time. Make sure to provide support during the transition.

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